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We Lend to Lenders

Originate · Innovate · Accelerate

Fund Performance

Annualized net returns since inception
Correlation with the Market (S&P 500)
Loans Funded
Sharpe Ratio
Months of negative performance

Risk & Return Profile

Average monthly returns of Class A are 0.95%, with zero months of negative return since inception.

Our enhanced collateral coverage helps preserve investor capital, accounting for over a 3x increase in loan losses before IRR is affected.

We have absorbed data on over 45,000 loans, accumulating over 150,000 data points that are integrated into our proprietary database. This information is readily used to predict investment performance and assess other lending opportunities expeditiously.


Institutional Investors

At Cypress Hills Partners Inc., (CHP) we believe that institutional and family office investors are looking for unique strategies and solutions.  Over the past decade, there has been a surge in the area of alternative investing opportunities, to meet investor expectations. CHP principals have been structuring alternative investments for over 25 years. The private debt asset class has grown in popularity due to the income nature of these types of alternative investments as well as the lack of correlation to other fixed income products.

CHP specializes in the Private Debt category and has deployed in excess of $100 Million into a Receivable Lending Strategy since inception. The market for funding opportunities remains strong with capacity to accommodate new institutional and family office capital within the Receivable Lending Strategy. For additional information, please contact us to learn more.



Our objective is to accelerate the growth of Specialty Lending Platforms using our advanced structuring knowledge. Specialty Lending Platform collateral may include consumer loans, small and medium sized enterprise (SME) loans, leases, advances against corporate trade receivables, corporate guarantees, regulatory capital, tax credits, and future predictable recurring cashflow.

In addition, we will look at Asset Based Financing to companies requiring capital beyond that willing to be provided by traditional lenders. Typically, these loans will be secured against accounts receivable, inventory, equipment, and other assets of the company.

We use our deep knowledge of the Specialty Lending space to assist Borrowers in developing a sound financial model using risk adjusted loss rates and if necessary sourcing a syndicate of lending partners in order to achieve an optimized cost of capital for the lending partner.

We believe there are optimal risk reward opportunities with Borrowers whose loan book or asset backed collateral is  less than $50 million, have developed out their primary infrastructure, and have established proven credit underwriting and/or origination strategies.

Majority of Borrowers fall into this category where all of their loan or asset originations are financed on  their own balance sheet. Their balance sheet will normally be stacked between a senior secured loan, subordinated debt, and then equity.

Borrowers may choose to have a portion or all of their loans or assets financed off balance sheet via true sale securitizations, bankruptcy remote special purpose vehicles, or via loan participation agreements.

Our funding efforts are supported by both internally managed merchant banking funds and co-investment partners, which includes other institutional and family office funds.


What is Specialty Lending

Specialty Lending is filling the lending void left by banks. The tightening of banking regulations has prompted banks to reassess their business models, regulatory capital and liquidity requirements, and the risk profile of the loans made by them. This has resulted in a significant reduction in the amount of debt that banks are making available to both business and consumer borrowers. Regulations such as Dodd-Frank and Basel III have also increased the minimum capital requirements applicable to a bank’s balance sheet. Another factor in the decline of bank lending is the decades-long trend of consolidation of community banks. Community banks have been shown to be more likely to make small business loans than the larger institutional banks, but the number of community banks continues to fall with less than 7,000 today in the United States, down from over 14,000 in the mid-1980s.

To the extent that traditional banks are lending, their lending model includes certain inefficiencies that make the cost of borrowing greater. A decision to extend credit to an individual or business is often not a binary decision made solely on the creditworthiness of the counterparty. Banks typically make decisions to extend credit based on a variety of exogenous factors, which often results in a lack of credit risk-based pricing for the borrower. As well as having to be cognizant of their capital adequacy and liquidity requirements, banks typically operate on a large fixed cost basis, including personnel, branch infrastructure and administration. These costs can also be a factor in the interest rates offered to their customers. All of these factors combine to result in the lending rates being offered by banks as opposed to analyzing the true creditworthiness of borrowers.

​In light of all of the above and the continuing demand for credit in a challenging global economy, we believe that the opportunities for alternative lending sources, including Specialty Lending Platforms, to increase their share of the overall lending market, will continue to become available. Further, Specialty Lending Platforms are optimally positioned to take advantage of these opportunities, not least due to their significant access to online credit data. Additionally, the process of disintermediation of lending away from the traditional banking model remains in its early stages resulting, we believe, in significant opportunities for investors going forward.

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