Gallery Enhanced Alpha provides non-recourse financing backed by individual hedge fund interests
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.
Q: Is this program available to anyone?
A: No. This program is available to accredited investors only.
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.
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.
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.
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.
More questions? Contact us.