ORIGINATOR PROFILE

TBG Funding

TBG Funding is a division of The Battery Group, a firm focused on direct investments in real estate, healthcare and asset management companies for two decades. Co-founded and led by Battery Group principals Charles Scharf and Willy Beer, TBG has been providing timely and advantageous financing to the real estate industry since early 2011. The TBG funding team is comprised of seasoned executives with extensive experience in both the real estate and finance industries. TBG makes loans across a range of sizes and asset types, building a diversified portfolio of loans that are not correlated to the broader stock and bond markets.

Originator Highlights

  • Since inception, TBG Funding has originated 230 loans totaling in excess of $250 million and is currently managing a portfolio of $120 million across over 100 active loans.
  • TBG Funding maintains a .007% foreclosure rate on its portfolio to date which represents 1 foreclosure in its 5-year history.
  • The combination of a 13-month average loan duration and interest rates of 10 – 13% makes TBG Funding’s portfolio an ideal real estate investment vehicle for YieldStreet’s investor community.

Operational Overview

The process of underwriting a new loan starts with the sourcing and procuring of borrowers and opportunities that are suitable for lending to. Efficiency and execution is a top priority during this stage and TBG goes through the following to ensure that both are achieved:

  • Utilizes proprietary systems and processes to procure loans that are suitable for its investor base.
  • Relies on their wealth of experience in underwriting, servicing, account and finance to effectively determine which opportunities to focus on.
  • Leverages their competitive advantage of providing financing in extremely compressed timeline without compromising on the quality that is necessary to make sound investment decisions.
  • Motivates borrowers to provide all applicable information in a comprehensive and timely manner to facilitate the curation of the opportunities that fit their model and risk tolerance.

If an opportunity survives the initial stage of documentation review and multi-layered internal approval process, then specific underwriting around valuations and terms begins in the following ways:

  • An insistence on site visits as well as a detail understanding of the borrower’s exit strategy provides TBG with insight into the opportunity’s risk profile.
  • A holistic view of the borrower’s credit profile allows TBG to make sound investments and risk decisions that traditional banks are unable to.
  • A streamlined diligence process that allows for multiple opinions and consideration when determining credit worthiness.
  • A strict underwriting guideline to not only determine suitability but also to protect investors from adverse scenarios. The low loan-to- value ratio of the portfolio is an example of this.

Management

Charles Scharf

Principal

Principal and co-founder of The Battery Group with 20 Years of experience in the healthcare and long term care industry and active real estate investor. Mr. Scharf is also on the Board of Directors of Cross River Bank, a New Jersey Chartered Bank, since 2008 and a member of its Lending Committee.

Willy Beer

Principal

Principal and co-founder of The Battery Group with 20 Years of experience in the healthcare and long term care industry and active real estate investor. Mr. Beer led The Battery Group’s acquisitions of Healthcare facilities, real estate and finance companies since inception.

Eli Karman

Chief Lending Officer

Decades of experience in real estate as principal of a real estate agency specializing in procuring agency tenants for landlords. Developed a keen understanding of the rental market, key to determining market value in residential properties.