In 2013, Stallion launched the Stallion Texas Real Estate Fund (STREF) as its primary investment vehicle for accredited investors. STREF has since reached $65,000,000 in assets under management and has produced 20 consecutive quarters of positive returns. The average annualized return to date has been just under 10% (assuming reinvestment of quarterly dividends).
The success of STREF has been a reflection of the enormous opportunities that exist in the private lending industry and the increasing confidence that investors have in the space. The structure of STREF is designed for short-term loans (12-18 months) of which there is high demand. There is also increasing demand for intermediate-term financing (2-3 years) which STREF is not able to capitalize on. Stallion Capital Management launched the Stallion Real Estate Income Fund to take advantage of this growing market.
The portfolio consists of loans to ‘as-is’, income-producing properties with solid debt-service-coverage ratios. All invested capital is secured in the first lien position. The Fund derives income from interest paid on the loan portfolio, and as individual loans pay off, the capital is redeployed into new loans, maximizing the overall yield to investors.
The Stallion Real Estate Income Fund is open to accredited investors.