With the launch of Noble’s Signature Fund, we have seen an immediate shift in our daily conversations with new investors. Instead of participating in our traditional loan syndication program, investors are quickly recognizing the additional diversification they receive through the fund, effectively lowering their risk for the same type of returns. As a result, there has been added emphasis on conversations surrounding fund management, asset allocation, and reporting.
One of the features that many of our clients are not aware of, however, is the ability to contribute existing loans (in good standing) into the fund directly as equity as opposed to waiting for a payoff. This allows existing clients to join the fund and take advantage of the additional diversification, but also provides the new opportunity to elect for the reinvestment option. That is, the ability to keep the quarterly interest payments compounding within the fund resulting in an increased overall yield for the investor.
To make the transition as easy as possible for our existing clients, we created two kind of Funds (one for qualified and one for non-qualified capital) that would allow for the immediate contribution of cash or notes; even ones with denominations smaller than the $250,000 minimum requirement. This unique feature was only available to clients that were members of Noble Capital’s loan syndication program prior to April 1st, 2017.
We are very excited about the reception of the Signature Fund in the marketplace, and we look forward to working with new and existing clients alike as we continue to execute our business model. With the Signature Fund, Noble Capital is firmly established as the premier private lending firm in the single-family residential real estate in Texas.