ORIGINATOR PROFILE
Avant Capital Partners
Avant Capital Partners is a New York-based real estate bridge lender with a focus on $2 to $20M loans in the New York Metropolitan area. The Originator lends to middle-market borrowers seeking capital for properties that may not qualify for traditional bank debt, financing under-performing and/or transitional properties, borrowers with imperfect credit histories or transactions with time constraints. The Originator’s investment team is comprised of senior investment professionals with experience in real estate, loan origination, loan servicing, restructuring, and asset management. Since inception in 2007 to 11/11/20, the Originator has originated 91 loans, of which 72 were in the New York Metropolitan area and 10 were development/redevelopments.
Lending Methodology
The Originator established a due diligence process to both gather and review the information necessary to make an informed credit decision. The Originator’s first area of focus is the associated property or properties, which are the primary source of security. The Originator has cultivated relationships with a number of referral sources through which it sources its transactions. Its credit analysis is primarily based on its internal underwriting and market analysis. The first step in its underwriting process is a site visit of the collateral property and a borrower meeting. Along with property-level data and third-party reports such as property condition and environmental reviews, its underwriting team then conducts its own market analysis and prepares an internal asset valuation report. Third-party appraisals, or Broker Price Opinions, are also obtained and serve as a secondary source of valuation.
Many of the Originator’s transactions involve the borrower performing enhancements to a property or improving operations, which are expected to result in increased property value. In addition to appropriately valuing a property at loan closing, the Originator analyzes the borrower’s strategy to add value to a property and service the loan prior to stabilization. This consists of the Originator reviewing the budget, expected performance, and interim sources of income. Repayment typically occurs through the stabilization of the property’s income and the subsequent refinancing with a conventional lender or sale of the property.
The borrower’s financial statements are reviewed to understand the assets available to satisfy any cost overruns associated with the property or to satisfy any guarantees associated with the loan, although no independent verification is made. The Originator views loans holistically so the risk associated with a borrower can be mitigated by adjusting a loan’s amount, interest reserve, or requiring additional cash reserves. The Originator may require that the borrower provide a full personal guarantee which obligates the borrower to remit additional funds in the event of a repayment shortfall or cost overruns.
With the full real estate and borrower profile complete, the Originator prepares an investment memorandum summarizing its due diligence findings and presented to its investment committee. All transactions require the unanimous approval of the investment committee. Once approved, the Originator offers terms it believes are reasonable and sound.
Portfolio Management
The Originator established an internal servicing function which is responsible for monitoring and management of its loan portfolio. The Originator processes monthly interest payments, including payments to senior leverage providers (if applicable), and controls the disbursement of construction funds reserved (if applicable). Its in-house servicing team provides oversight to ensure the project progresses in line with the budget. Disbursement reports are provided on a monthly basis, and process reports are provided on a quarterly basis to participants and/or investors.
Management Team
Adam Luysterborghs
Founder & Managing PartnerMr. Luysterborghs is the Founding Partner of Avant Capital Partners. He is responsible for corporate development, investment origination, and capital formation, and is a member of the Investment Committee. Prior to founding Avant Capital Partners, Mr. Luysterborghs was a Director at Berkshire Capital, a CMBS and bridge lender, where he originated bridge loans for a $3 billion multi-strategy hedge fund. Mr. Luysterborghs currently serves on the Board of Governors for the NY Mortgage Bankers Association.
Mr. Luysterborghs received a B.A. in Economics from The American University.
Amy Cheng Park
PartnerMs. Park is a Partner at Avant Capital Partners, and manages the firm’s underwriting, closings and servicing activities. Ms. Park has 20 years of experience in commercial real estate. Prior to joining Avant Capital Partners, Ms. Park was a Senior Underwriter at Berkshire Capital, a CMBS and bridge lender, and an Analyst at the David Cronheim Mortgage Company.
Ms. Park received a B.S. in Business Administration and Finance from Carnegie Mellon University’s Tepper School of Business.
2 Represents an net annualized return, using an internal rate of return (IRR) methodology, with respect to the matured investments shown in your Portfolio experience, utilizing the effective dates and amounts of subscriptions and distributions to and from the investments, net of management fees and all other expenses charged to the investments.[read more]