Best Fixed Income Mortgage Backed Fund (Since Inception): NPIF
Company: Sterling Financial Group Inc.
Contact name: David Kosoy
Web address: www.sterlingbahamas.com
Address: New Providence Financial Center, 81 East Bay Street, P.O. Box N1812, Nassau, Bahamas
Sterling Financial Group Inc. (Sterling) is a regulated Securities Investment Manager and Advisor under the laws of the Commonwealth of The Bahamas operating as a boutique financial advisor covering the real estate debt and equity markets.
Sterling concentrates its activities in the Caribbean, North American and lender friendly European countries such as the UK and Ireland, providing mid-market property developers and owners with quick approvals on flexible, short to mid-term financing on residential and commercial properties. Sterling provides investors the opportunity to invest in secure, high yield mortgage investments as well as equity participations.
With a combined 140+ years of experience, the management team comprising of David Kosoy (Chairman and CEO), Steve Tiller (President and COO), Ross Brennan (Managing Director) and Thor Ibsen (Executive VP) have the depth and knowledge to manage the challenges of an increasingly complicated marketplace and regulatory environment. The principals of Sterling are significant co-investors and accordingly consciously aligned with fund investors for their mutual benefits.
Sterling’s trading philosophy has evolved from over the four decades spent in the areas of real estate investment and lending by its management team. Our real estate mortgage fund, New Providence Income Fund (NPIF), invests solely in well-conceived loans to reputable property owners and developers. As an “asset-based” lender, Sterling only originates loans on properties with multiple exit strategies, which would include foreclosure, taking possession of underlying property/collateral and/or realization under guarantees.
NPIF’s objective is to offer our clients an investment strategy that delivers consistent returns uncorrelated with the general markets together with enhanced protection of investment principal. Our aim is to achieve overall returns of between 10 to 15% per annum after management compensation and operating expenses.
The portfolio is diverse and is built from individual senior and junior mortgages in the following categories:
• Bridge Financing;
• Construction and Development Financing;
• Mezzanine Financing;
• Joint Venture Equity;
Loans advanced by NPIF are for retail, industrial, office, multifamily or other commercial properties as well as single family residential. Additionally, in some cases, the fund may participate or co-invest with other reputable lenders.
Sterling has demonstrated over the years that its lending philosophy is robust as returns continue to be above market with a lower risk profile and no loan write downs. This is achieved by utilizing Sterling’s advantages for the benefit of the Borrower and Investor.
These advantages include:
• One of the few active lenders in the Caribbean with a historical record of success;
• Due to our understanding of our markets we are able to be flexible and structure facilities to borrower needs;
• Unique knowledge and contacts in the Caribbean allows for more thorough due diligence;
• Speed and reliability from loan inception to funding;
• Geographic flexibility allows the fund to compete in markets with less liquidity;
• Origination of loans in the $2MM to $15MM level where competition is less intense;
• All fees (up-front, standby etc.) are part of the investor return, Sterling does not keep any fees for its own book; better aligning Sterling with the investors
• Trading flexibility; there is no pressure to lend to meet volume targets. Lending only occurs when a suitable opportunity is sourced.
David Kosoy, founder, Chairman and CEO of Sterling comments: “Our focus has been to provide our
investors with a favourable risk/return strategy. Since inception in 2012, NPIF has delivered a weighted average investor return of over 12% after all costs and management compensation, and 2015 promises to be another stellar year. In generating these returns we have always kept risk levels low by over collateralizing our loans, utilizing our intimate knowledge of our markets and only dealing with trusted business partners.
Our goal is to continue the disciplined growth of NPIF over the next few years but still operate as a boutique fund in order to keep speed and flexibility. In addition, this strategy will allow us to continue to make decisions based on market dynamics, not volume targets. In this way we can maintain our superior risk/return performance and take advantage of opportunity at our discretion”