At the beginning of 2021, Tactico established its first debt fund – Tactico Strategic Finance (TSF). Adding to Tactico’s solid track record of success, the fund’s first closing on February 1st was oversubscribed. The positive response from investors is a clear indication that our growing network is ready for new and innovative investment models, especially in the current economic climate.
While we know that many investors want an active approach to investing via SPVs, targeting individual early stage venture deals, we also realize that others prefer a single investment structure that provides diversified access to private investments.
If you’re looking for better income-producing opportunities to optimize your portfolio, then you should consider higher-yielding debt-investments.
Debt funds can offer a high reward with a substantially mitigated risk profile, with targeted returns of roughly 10% annually (after fees). With a monthly distribution schedule, this liquid investment means that your money can be converted with greater ease. You’re also able to make these investments each quarter, giving you a flexible and dynamic way to generate substantial revenue.
Businesses also benefit from the flexibility of this model. Tactico Strategic Finance ensures that company ownership remains undiluted and that its leadership team retains control over management. For many companies, debt funds make the overall planning much easier, which gives them the sense of security and freedom to develop effective strategies for business development and growth.
Helping Innovative Businesses & Savvy Investors
By increasing capital protection with operational covenants that we are uniquely able to execute on, we can finance opportunities that traditional lenders won’t approve and offer creative terms, which may include:
- Accepting smaller deal sizes
- Taking PIK interest and equity kickers to lower current interest payments
- Taking 2nd rank
- Evaluating earnings and enterprise value rather than tangible collateral
- Catering non-traditional receivables, such as commissions
- Sourcing business models that are competitive to banks (brokerage sub-debt, proprietary trading, mortgage, etc.)
- Helping companies with operational oversight, strategic direction and day-to-day financial management
For investors, the model is also straightforward:
- You receive monthly distributions
- Net asset values are set quarterly
- There are quarterly offerings of new units expected as deal flow permits
- LP/GP structure to flow through benefits of dividends when using prefs or cap gains on any warrants
- Loans may be accompanied by equity kickers that will accrue to all limited partners
Tactico’s track record with debt financing has been successful, with no loan losses and medium to high yields. We now want to replicate this strategic lending initiative on a larger scale because of our tested strategy and real results. We are well equipped to help companies with creative sources of non-diluted financing to operate and grow their business.
What’s On the Horizon
The unprecedented interest of our first debt fund launch indicates solid demand for these dynamic investment opportunities. We are happy to tell you that there will be plenty more opportunities to participate as a lender or borrower.
Tactico works to nurture Canada’s VC/PE ecosystem by providing access to diversified and innovative investment vehicles for accredited investors, family offices, wealth managers, and institutions. To find out more about Tactico’s debt investments and other opportunities, please contact info@tactico.com.
Get on the Waitlist
To secure your spot in TSF’s next offering, contact esteinberg@tactico.com.
If you are a company looking for debt financing, send your pitch deck to tbaloukas@tactico.com.
