How We Work

Non Traditional Private Equity Lending is, the name given to a category of financial transaction (primarily lending & borrowing) which occurs directly between lender and borrower – sometimes individuals – without the intermediation / participation of a traditional financial institution.

In recent years, peer to peer transactions has gained momentum and funded numerous ventures successfully. Multiple online sites and private firms offer a range of financial products, including debt consolidation, home improvement, small business loans, microloans to poor regions, etc. During the 2012 year, the peer-to-peer trend is forecast to reach $1 billion in transactions.

Private Equity Lending is a type of private debt secured by hard assets – usually real estate -  provided for deeply discounted high-potential, growth projects in the interest of generating an eventual return on investment.

Private lending in Texas totaled $60 billion in 2010 and $81 billion in 2011. Most private lending transactions are in the $50,000 to $5 million range and come primarily from private capital funds or individual “angel” capital partners.

  • Pioneer Capital Fund, lc also allows individual lenders to participate in funding projects in which they otherwise never would have the opportunity to participate.
  • No other firm combines direct lending with the venture capital aspect enabling the individual investor early access to private opportunities

Types of Investing:

Passive Investor
Uses his cash and leverages our skills, connections, resources for a return on his capital investment

  • we find deals, scrub, organize, package, negotiate, deliver and then execute for a preferred return and share in the profits going to the Investor.  This investor gets equity secured returns on his capital with minimal required input.

Semi-Active Investor
Invests his cash and participates in a limited way, usually dividing his time between ventures and looking to contribute to the success of the project, while letting the deal Sponsor do the heavy lifting.

  • we find and do the deal, while he makes introductions, acts as an advisor, and take a limited passive/active role.

He COULD do the deal, but sees better use of his time elsewhere and allows us to do what we are good at while giving him a return better than a purely passive investor.

 

Active Investor
Uses his own cash and skills and connections to invest full time.

  • we can refer him deals and support his efforts with resources and services

He wants to take on all the risk, do all the work, and see most of the rewards