Equity

Best return-to-risk, by construction

LIHTC equity that pairs proprietary deal flow from non-institutional sponsors with institutional infrastructure and proprietary insurance products.

A Market With Two Buyers

Two buyers, priced apart by design

Roughly four of every five equity dollars come from banks meeting CRA obligations. The return-motivated buyer is under-served by infrastructure built for banks.

	CRA-Motivated Banks	Economic Investors
Share of equity	~80%	~20%
Primary motive	CRA compliance + credit	After-tax return + values
Pricing paid	High-90s to >$1.00 / credit	High-80s to low-90s / credit
Yield sought	~3–5%	~5–8%
Depreciation's role	Secondary	Central to the return

Indicative ranges from recent survey commentary; illustrative market context, not quotations.

How the Return Is Made

Three components, plus the Ivy layer

01 · The Credit

A dollar-for-dollar federal tax credit over ten years, acquired below par — at ~$0.90, about $1.11 of offset per $1.00 invested.

02 · Depreciation

Passed through the partnership to shelter additional taxable income — the component a credit-only buyer cannot use.

03 · The Residual

Operating cash flow and back-end proceeds, with a typical exit in years 11–16 once credits are delivered.

+ The Ivy Layer

Negotiated GP participation on the deals we source, targeting a blended return in the mid-teens.

Risk, Engineered Down

The national LIHTC portfolio runs at roughly 97% occupancy with negligible foreclosure. Deals are structured and monitored to hold affordability through the 15-year compliance period, and a proprietary insurance wrapper is designed to bring residual recapture and default risk toward zero.

Be Comfortable With

Hold length — ten years of credits, a typical exit in years 11–16
Credits return capital; they do not compound
Taxable capacity to use credits and depreciation
Thinner exit liquidity in secondary and tertiary markets

Important Information

This page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or interest, nor investment, legal, accounting, regulatory, or tax advice. Any investment in affordable-housing tax-credit vehicles involves risk, is generally restricted to accredited and qualified investors, and depends on tax, regulatory, and market conditions that can change; tax benefits are subject to recapture and to each investor's particular circumstances. Return figures are targets, not guarantees.