Through our Fintech joint venture, we use a proprietary Credit Enhancement Contract (CEC) platform to facilitate credit risk transfers to banks.  In return, the banks receive Basel III Eligible Guarantees for their CRE loans and provides them with Tier 1 capital relief to make more loans.  To achieve this, we provide our institutional investors with a pipeline of senior secured credit exposure to high quality U.S. commercial real estate (CRE) bank loans.  The investors, called “Writers” deposit collateral with a custodian, which contributes credit support to the guarantee.  Writers receive fees plus a cash yield on their deposit, generating a total return that is well in excess of the yield available by investing in senior loans, CMBS or fixed income investments of similar credit quality, collateral support, and duration.  Writers are able to select a subset of first lien, seasoned, stabilized and performing loans in major U.S. metropolitan areas held on the balance sheets of top U.S. bank lenders.  Writers do not acquire the underlying assets; rather, they gain exposure to the loans via the CEC-X platform, with the option but not obligation to acquire loans in default.  Writers can achieve an annualized, unlevered return of 10% to 15% with an average maturity of 4 to 5 years, depending on underlying loan yields, fees, credit quality and other factors.

Additional benefits for Writers include:

• Exposure to high quality CRE loans that are not broadly available, more underlying asset transparency than most traditional CRE alternatives and excess total yield.
• No cross collateralization of credit risks.
• Access to a large and consistent pipeline of private credit opportunities, enabling investors to deploy meaningful amounts of capital regularly.
• Risk-tailored exposures to CRE loans supported by the origination, underwriting and servicing excellence of top-tier lenders.
• Ongoing loan servicing by the original lender with additional oversight and reporting by CEC-X.