Investment Strategy

PR Mortgage ("PRMIM") investment objective is to seek to generate attractive returns by investing in a portfolio consisting primarily of debt collateralized by real estate and related equity interests. PRMIM  will leverage relationships obtained over the management team’s long tenure in the industry and utilize the experience, tools, and relationships available  to it through its affiliation with Merchants Bank of Indiana. PRMIM's investment strategy consists of the following key tenants:

• Contract a high yielding diversified residential and commercial mortgage asset portfolio with risk adjusted total return that outperforms relative to other fixed income investments
• Enhance total return through the utilization of financial and structural leverage
• Seek investments that perform in both rising and falling interest rate environments
• Seek to mitigate risks through several features of the investment strategy, including:
  • Focus on geographical locations with the most vibrant economies
  • Govern the investment process through management discipline and stringent risk policy
  • Underwriting focused on underlying real estate fundamental value analysis, protecting the downside and understanding true property valuation
  • Diversification through product and geography
  • Structure of investments to profile legal and financial protections
  • Ease of access to property in event of a default

  In pursuing investment objectives, management intends to acquire or originate debt instruments with a stable and predictable return with strong principal protections. Investments may be sourced through the following methods: 

• Direct Loan Origination
• Purchase and/or aggregation of whole loans
• Strategic relationships with whole loan originators and sellers including Merchants
• Broker Dealers and other financial intermediaries
• Banks, Funds and other financial institutions
• Bond Purchases