Q:  What is non-recourse financing?

A:  Non-recourse financing means that a lender can only use a specific asset (in this case, interests in a hedge fund) as protection against a borrower's default.  A lender cannot claim any other assets of a borrower, and does not need a personal guarantee.

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Q: Is this program available to anyone?

A:  No.  This program is available to accredited investors only.

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Q: Does any hedge fund qualify as collateral?

A: No. We have a stringent eligibility criteria.  Among important considerations are fund liquidity, historical risk profile, operational stability.

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Q:  How much can I borrow?

A:  Loan-to-value depends on many factors impacting the risk of a fund investment.  The best place to start evaluation of your fund is to complete a confidential short form.

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Q:  How long does it take to get approved?

A:   Since we perform comprehensive due diligence of funds submitted to us, the approval process can take 4-8 weeks.

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Q:  Aren't there traditional lenders such as banks or prime brokers who can lend me money?

A:  Yes and no.  A traditional lender is unlikely to accept interests in a single hedge fund as valid collateral.  There will need to be a personal guarantee or a pledge of other assets, such as marketable securities, real estate, etc.  

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More questions?  Contact us.