What keeps Noble Capital successful is that we are always looking for ways we can add value to our business. This past spring, we made a decision to make our clients’ lives easier and less stressful. “That’s very nice of you,” I’m sure you’re all saying, “how did you do that?” We’re so glad you asked. Back in March, Noble Capital launched our Signature Fund as a new option for our network of lenders. To do this, we partnered with US Capital, a San Francisco-based private investment bank, which brings to the party additional expertise and oversight.
As the Fund is a different investment model than what many of our long-time clients may be used to, here is a breakdown of some of the added benefits:
Greater Diversification of Risk
Rather than lenders relying on a single borrower for the repayment of the loan, the Signature Fund spreads out repayments across multiple deals in the portfolio. Additionally, The Fund affords a lender the luxury of diversifying across numerous deals with a much lower investment amount as opposed to having to invest in multiple deals, individually, to achieve the same level of diversification. To date, the Fund is comprised of 65 individual loans.
More Consistent Returns
The benefit of greater diversification is that, in the unlikely event a specific deal goes into default, the lender continues receiving payments from a greater number of deals instead of waiting for the issue to be resolved with a single borrower. More timely, predictable returns provide some piece of mind for those who are more risk averse.
When your money is invested in the Signature Fund, your returns can be automatically reinvested into more shares of the fund allowing you to compound your returns over time. The ability to take advantage of automatic compounding allows you to achieve greater growth without repeatedly having to enter into new deals each time one is completed.
There also is a lot less hassle for lenders as you avoid having to do repeated paperwork for each individual deal. Once you invest in the fund, you’re able to participate in multiple loans with less burden.
We’re coming up on two full quarters since Noble Capital launched our Signature Fund and we’re now able to look at some accumulated data on its performance. As with any new financial product, it took some time for us to get this thing up to cruising altitude. But, we’re absolutely ecstatic to report that the Fund is gaining momentum and we’re starting to see some very positive results. Going forward, it will allow us to expand and expedite our funding of real estate projects in the Texas market and provide more predictable performance for our investors. Get in touch to see how you can participate!