Participating Mortgage Finance

Loanetics Fund VII

First-mortgage loans with equity participation features entitling the lender to a share of cash flow, refinancing proceeds, and sale appreciation.

$1.300B
Target Fund Size
10–14%
Net IRR Target
8%
Preferred Return
$2M
Minimum LP Commitment
Strategy

What Fund VII does.

Loanetics Fund VII structures and invests in participating mortgage transactions — first-mortgage loans with equity participation features entitling the lender to a share of cash flow distributions, refinancing proceeds, and sale appreciation above an agreed equity return threshold.

Sponsors receive below-market interest rate financing in exchange for granting the lender economic upside participation.

The fund targets value-add and development deals with strong expected appreciation potential where equity participation economics deliver enhanced total returns relative to conventional senior debt.

At a glance

Key terms

SectorParticipating Mortgage Finance
VehicleDelaware Limited Partnership
Target Fund Size$1.300B
Net IRR Target10–14% net IRR
Preferred Return8% compounded annually
Carried Interest15% above 8% pref (100% GP catch-up)
Minimum LP Commitment$2,000,000
AuditorPwC
Fund CounselLePore Law Group
GovernanceLP Advisory Committee
Ideal borrower

Who Fund VII serves.

Value-add and development sponsors seeking below-market coupon financing in exchange for equity participation, on assets with clear appreciation catalysts.

Apply for Financing
Hallmark features

How the loans are structured.

  •  Below-market interest coupon
  •  Cash flow participation feature
  •  Refi and sale proceed participation
  •  Appreciation threshold structure
  •  Alignment with equity outcomes

Interested in Fund VII? Qualified LP investors can request the fund deck, PPM, LP subscription package, and audited platform financials through Investor Relations. Borrowers can submit a loan application directly through the Borrower Intake portal.