Northwind Financial Corporation has a strong track record in PE Syndication, relationships with a large number of financial sponsors and the expertise to manage processes efficiently.Private Equity Syndication is complex, long drawn out process, frequently over months, and involves multiple stages of deal management such as brainstorming with the management about the most appropriate positioning, managing multiple investors with varied offers, effectively coordinating with service providers for the diligence process and advising stakeholders on the negotiations.
Northwind Financial has a leadership position in Private Equity Syndication, with a track record of successful deals done with a large number of financial sponsors. We have unique process management experience and expertise which helps in quick closure of complex, strategic transactions. The firm has a very deep understanding of its chosen sectors, which it leverages to position its clients optimally.
Northwind Financial’s Private Lender’s Network™ (PLN) consists of Individual Investors, IRA’s, Trusts, Pension Plans, LLC’s, Corporations, etc. The PLN is setup to fund 1st Position Trust Deeds, also known mortgage loans. When an investor becomes a Member of the PLN, they become a “private lender” and gain access to high quality mortgage loan investments through Northwind Financial Corp. The invested monies are secured by loans on residential & commercial investment real estate properties in the United States. Lenders are placed directly on the note & deed of trust which can be fractionalized among several lenders or wholly funded by one lender. This is a passive investment opportunity for the Lender; Evergreen Servicing, LLC is the Servicer for the PLN and manages all loan servicing functions including payment processing, property insurance & tax management, construction control, payoffs, defaults and other servicing matters. The short terms loans are typically 12-18 months with interest only payments due monthly. Interest payments are distributed monthly to Investors.
The loans must meet strict underwriting and due diligence requirements administered by Northwind Financial. All loans funded through the PLN are individually processed and fully underwritten before funded. Northwind endeavors to only fund loans that will perform to the high standards the company has established for the PLN in order to maximize the stability of the cash flow and rate of return for Lenders in the PLN. Lenders will pay no buying/selling commissions or fees to lend money through the PLN. All commissions and fees associated with the origination and servicing of the loans are paid by the Borrower. Lenders should consider their investment in a mortgage loan as illiquid for a minimum of the term of each loan they fund (typically 12-18 months).
The Servicer’s income is derived from upfront fees, loan servicing fees paid by the Borrower such as, servicing fees, late payment fees, escalated interest fees and others. For example, a loan may be originated at 14% to the Borrower and 12% is passed on to the Lender with a 2% servicing fee paid to Northwind. Lenders can achieve 10-12% returns through the PLN and the income is characterized as interest income to the Lenders for taxation purposes.
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