Hillcrest believes in building a defensive portfolio, with assets in key economically-sound markets. We focus on middle-market sized transactions. Our "hands-on” real estate and capital markets expertise results in creative capital solutions to our borrowers and attractive risk-adjusted returns to our investors. Our portfolio construction process focuses on balance through diversification across markets, property sectors, asset life-cycle, and loan term. Through this approach we seek to avoid peak pricing, yield attractive investment opportunities, attractive relative returns for the portfolio, and provide additional downside protection.
Credit and Income Strategy
The Hillcrest Credit and Income strategy targets unlevered mezzanine and preferred equity investments secured by core plus real estate assets. Credit and Income investments are located in strong U.S. markets, range from $8 million to $50 million in size, and up to 80% loan-to-value. Hillcrest co-originates Credit and Income investments with money center and regional banks, financial institutions, Freddie Mac, and directly with owners and operators.
Enhanced Yield and Income Strategy
The Hillcrest Enhanced Yield and Income strategy targets mezzanine, preferred equity, and whole loan opportunities for transitional and distressed real estate assets and/or borrowers seeking recapitalization options. The strategy includes both loan-to-maturity and loan-to-own opportunities, where owners need additional time to execute their business plan or for investments where there is a lack of available financing. Targeted investments range from $8 million to $50 million (and a minimum of $25 million for first mortgages) in size and are originated directly with owners and operators, brokers, money center and regional banks, and financial institutions.