A three-pronged approach

October 10, 2023

With the credit facility ready to deploy and the accredited investor acquisition on sound footing, the final piece of the puzzle has been the institutional qualified purchasers who can anchor our growth. These are the family offices and investment advisors who can bring much more stable capital onto the platform, slotting right in between accredited investors and the credit facility when it comes to quantum/size of capital deployed and stickiness of capital. 

Prior to this last quarter, we didn’t quite have an institutional investor acquisition strategy as it was purely ad hoc. Those that signed up and indicated they were institutional got a phone call and we tried to develop a portfolio allocation strategy that was compelling for them. With the rollout of bespoke blended notes, ones where we customize the program specifically to the investor’s interests, and paired with a concerted outbound outreach strategy, we’ve started to hit our stride in Q3. 

By any metric, this past quarter was a success for our first time going out to market in earnest. We brought in over $[ ]M in new institutional capital compared to a $[ ]M target thanks in large part to [ ]+ meetings being held. [ ] of these meetings turned into new investors and there’s [ ] more in the pipeline that we’re pushing hard to close in the next two months. 

All three investor acquisition strategies need to work in tandem. Accredited investors help grow our brand awareness and fill smaller deals or backstop deals to get them to the finish. The credit facility can deploy at scale and helps us recycle investor capital into other opportunities by taking them out. And this final piece, our institutional qualified purchasers, are going to anchor a large part of the growth heading into next year. 

We’ve already seen this third pillar of investor acquisition pay dividends in Q3 and that momentum is only going to carry us further and faster from here