Inlet Capital provides merchant banking services, advice on restructurings, financings and IPOs, and invests throughout the capital stack in all types of real estate
Experienced Senior Management Team Our senior management team is led by Mr. Locker, who has more than 25 years of experience in the fields of real estate finance, private investment, capital markets, transaction structuring and risk management. Mr. Locker has extensive experience in originating and structuring debt and equity financing and providing strategic advice to real estate companies across a variety of real estate sectors in key markets throughout the United States.
Multiple Sources of Potential Transactions Our senior management team has strong relationships with real estate owners and investors, third party mortgage and real estate brokers, commercial mortgage-backed securities originators, commercial and investment banks, financial institutions and other strategic partners in the United States. In addition, our non-executive co-founders have strong relationships with similar parties in the United States, Germany and other Western European countries.
Multiple Opportunities to Invest in Various Components of the Capital Structure Because we offer a wide array of structured finance products and because we obtain investment leads from multiple sources, we have opportunities to evaluate potential investments in the same real estate asset more than once, allowing us to determine the type of investment in a project that we believe will offer us the best risk-adjusted returns.
Unprecedented market opportunities to capitalize on the skills of Inlet Capital
Inlet is presently aware of the following types of investment opportunities:
- Performing, sub-performing and non-performing commercial mortgage loans, mezzanine debt, B-notes, CMBS bonds at a discount to face value
- Self-originated commercial mortgage loans and other real estate-related assets
- Secured loans and convertible debt to real estate operating companies and REITS
- Operating assets available for purchase in the office, hotel and retail fields
Operational Efficiency Our employees have a wide range of experience and expertise in real estate capital markets, debt and equity investment origination, underwriting and asset management.
Strong Underwriting and Structuring Expertise Our in-house investment underwriters possess significant experience in the types of real estate assets for which we intend to provide financing, which will be critical to our investment review process. Our senior management team also has experience in structuring intercreditor agreements, participation agreements and servicing arrangements that can enhance returns, protect our rights, and mitigate losses.
|Recapitalizations and IPOs
||Private to Public arbitrage and deleveraging
||Often involves buying out other parts of the capital stack at a discount.
||Secured loans in default or at imminent risk of default
||We identify situations where we believe that the underlying value of the assets securing the distressed securities is adequate to provide for the repayment of the distressed debt and that sufficient controls are in place to facilitate such repayment
||Loans senior to equity and subordinate to first mortgage loans (including Sub-Tranche Loans), typically secured by pledges of an owner’s equity interest in a property
||Can be fixed or variable rate, and may have yield enhancement devices such as incentive fees, exit fees and profit participations
||Longer-term senior financing
||We typically look to retain the loan and syndicate or sell selected tranches
|Sub-Tranche Loans / B Notes
||Subordinated interests in mortgage loans secured by income-producing properties
||As real estate securitization markets have evolved, first mortgages have increasingly been bifurcated into multiple interests, typically investment grade A notes and subordinated B notes. A notes and B notes share a common first mortgage position and are secured by the same collateral
||Short-term capital for property acquisition, construction or redevelopment, entitlement period, construction shortfalls ahead of permanent financing take out
||Can be fixed or variable rate and is typically secured by a first mortgage along with additional credit enhancements such as additional collateral and/or personal guarantees
||Unsecured interest with claims senior to common equity holder
||Typically unsecured debt in issuers with an underlying portion of their assets free of secured debt and available to service unsecured creditors. These obligations are senior to equity holders
||We may invest in select situations where special features of the convertible debt offer the opportunity for near term gains
||Securitized or derivative securities structured from or otherwise related to individual securities, financings or assets