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Velocity provides non-dilutive debt and preferred equity liquidity solutions at the fund and management company levels, where the manager or General Partner has full discretion over where, how, and when to use the additional capital from our financings. While each solution is contextually influenced, our financings are designed to unlock illiquid value by facilitating additional investments within a fund, refinancing expensive legacy financings originally used in the fund formation stage, accelerating the distribution of capital to investors or carried interest to managers, and helping seed new investment strategies.

We have developed a full suite of liquidity solutions for investment managers at all stages of the fund life cycle, and do not require equity participation to achieve our return requirements. We work in a consultative fashion with managers to create practical financing solutions on commercial terms, tailored to the unique characteristics of the underlying assets and based upon the intended use of loan proceeds. We manage several distinct pools of capital that facilitate our flexibility to provide a broad range of financing solutions to our borrowers. Our capital may be deployed as senior secured debt, or any other security up to and including preferred equity.

We Underwrite Asset Portfolios that have Quantifiable NAV:

  • Concentrated portfolios (typically 3 or more assets)
  • Diversified LP portfolios (typically greater than 25 assets)
  • Continuation funds
  • General partner and management fee streams, including carried interest
  • Other idiosyncratic equity or debt assets

Geographic Focus:

  • General partners domiciled in North America or Western Europe.
  • Collateral assets across the world but focusing on those funds where the majority of the underlying portfolio assets are in North America and/or Western Europe.
  • Flexibility to provide financing against portfolio assets denominated in CAD dollars, Pound Sterling, Euros or other local European currencies.

Target NAV-Based Financing Characteristics:

  • Underwriting Capabilities: Up to $150MM per deal
  • Target Hold Size: $15MM to $75MM per deal
  • Loan to Value Levels: 5% to 50% for concentrated NAV, potentially higher for diversified NAV
  • Security Types: Senior secured debt to preferred equity solutions
  • Funded versus DDTL: Up to 50% in the form of DDTL, possibly higher depending on diversification, asset quality and use of proceeds
  • Coupon: Cash and/or PIK Interest