Available for Investment
Credit Opportunity Fund
PeerStreet is excited to launch a new investment vehicle, Peer Street Credit Opportunity, LP (the “Credit Opportunity Fund”)! The Credit Opportunity Fund aims to provide investors with a new way to invest and diversify their portfolio in alternative assets. The Credit Opportunity Fund will invest in familiar assets, such as Single Family Bridge, Single Family Rental and Multifamily assets, but it will seek to generate higher returns by focusing primarily on distressed and subordinate investments, as well as other opportunistic assets.
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Assets Included in the Fund
Non-Performing Loans
Performing Loans and Secondary Market Purchases
In the current market climate there has been an influx of non-performing or distressed loans. These non-performing loans allow you to invest at a heavily discounted price with higher expected yields. However, because non-performing loans often require more time, expertise and management strategies to work through, risk is considered higher than performing loans and holding periods may be much longer.
Subordinate loan positions rank below other, more senior loans or securities with respect to claims on assets or earnings. To compensate for the higher level of risk, subordinate positions command higher interest rates and are expected to make comparatively larger payments than A-notes/senior positions.
There are also times when investors need to liquidate portfolios (due to margin calls, fund redemptions). These situations can allow the Credit Opportunity Fund to purchase assets (both performing as well as non-performing) at discounts to where they may normally trade.
Fund key terms
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Minimum Investment: $100,000
Targeted Return: 8 - 15 %
Distributions: Quarterly (if distribution is available after reserves)
Lock-up: 3 years
Liquidity: Quarterly, with 90 days notice
Management Fee: 1.00 %
Hurdle Rate: 10%
Carried Interest: 25%
Higher Risk, Higher Yields
The assets included in the Credit Opportunity Fund have higher expected returns and higher levels of risk than traditional performing first-position liens, as the focus moves towards impaired or more highly levered investments. While expected returns are comparatively higher, investors should expect more volatility due to the nature of the assets and longer holding periods.
Fund Benefits
The Credit Opportunity Fund will reflect current opportunities in the market. We anticipate investments in the fund to include:
Equity Portion of Warehouse Lending Facilities
The equity portion of the warehouse lending facilities provided by third-party financial institutions to PeerStreet, yielding an enhanced return to the fund.
Strategic Flexibility
By being able to invest in a broad range of assets, including distressed loans and REOs, the fund will be able to take advantage of different market conditions and leverage PeerStreet’s position in the market to enhance potential investor returns.
Target returns are provided for informational purposes only and are not guarantees. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly on this page will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Nothing on this page constitutes investment advice. Investors should consult with their financial, tax, and legal advisors before making any investment decisions and to determine whether this fund is suitable to their financial position and investment preference.
This page is intended only for PeerStreet investors for informational purposes and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service by PeerStreet or any other third party regardless of whether such security, product or service is referenced in this website. Relevant details regarding investment opportunities are contained within the corresponding private placement memoranda for such offerings. Nothing in this website is intended to provide tax, legal, or investment advice and nothing should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. PeerStreet's investments are only available to accredited investors with accounts on PeerStreet.com and PeerStreet does not represent that the securities, products, or services discussed in this article are suitable for any particular investor.
Real Assets as Collateral
Like other PeerStreet investments, funds may invest in real estate-backed loans, but they may also target different, opportunistic investments with different characteristics and risk profiles.
PeerStreet has spent years developing relationships through which it can source investment opportunities for this fund. This is an opportunity you don’t want to miss out on! Sign up now for more information.