FRACTIONAL LOANS
Starfortis - Opportunistic
Invest in exclusive mezzanine loan investments
- Opportunistic Investing
- Fractional lending model
- Lending to professional property companies
- Diversified portfolio with strong returns
FIXED INCOME INVESTMENTS
Mezzanine Loan Investments for Asset Backed Fixed Income
In The UK Property Market
Mezzanine loan investments provide high-net-worth investors with access to structured, asset backed investment opportunities within the UK property market that typically offer higher risk-adjusted returns than senior lending.
These investments are commonly positioned as part of a broader fixed income investments allocation for experienced investors seeking exposure to alternative property investments.
At Starfortis Asset Management, we structure mezzanine loan investments for professional and sophisticated investors who understand private credit structures and value disciplined risk assessment, transparency and robust documentation.
FIXED INCOME INVESTMENTS
What Are Mezzanine Loan Investments?
Structured subordinated lending within property finance
Mezzanine loan investments involve providing subordinated lending to property projects, usually ranking behind a senior lender.
These investments are commonly documented through second charge security or contractual subordination arrangements and are designed to offer higher returns than senior lending in exchange for a higher risk profile.
From an investor perspective, mezzanine loan investments are often used to gain exposure to alternative property investments without participating directly in equity ownership.
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Second Charge Lending and Capital Structure
Understanding where mezzanine sits within project risk
Mezzanine loan investments typically sit behind senior debt within the capital structure of a project. The higher return associated with mezzanine loan investments reflects this increased risk within the capital stack.
FIXED INCOME INVESTMENTS
Mezzanine Loan Investments as Fixed Income Investments
Alternative fixed income exposure within private markets
Many experienced investors view mezzanine loan investments as part of their alternative fixed income investments allocation.
While the risk profile is higher than senior lending, returns are typically structured and agreed in advance, which distinguishes mezzanine lending from equity-style investments where outcomes are uncertain.
Within diversified portfolios, mezzanine loan investments are often used to complement senior secured investments, offering higher income potential while still retaining exposure to asset backed investment structures.
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Why Investors Allocate to Mezzanine Loan Investments
Risk-adjusted returns for experienced investors
High-net-worth and sophisticated investors may allocate to mezzanine loan investments when seeking enhanced returns within private markets.
For legal insight into how mezzanine finance operates in property and structured finance see this guide by property finance solicitors.
Portfolio Diversification
Asset Backed Security
High Growth Potential
Security Trustee Appointed
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How Asset Backed Investment Structures Apply to Mezzanine
Linking subordinated lending to underlying real assets
Although mezzanine finance is positioned behind senior debt, it is still structured as an asset backed investment.
The investment remains linked to the underlying property asset and supported by legal documentation that defines the investor’s position within the capital structure.
Professional mezzanine structures typically rely on careful assessment of the underlying asset, conservative overall loan-to-value across the capital stack, and a clearly identified exit strategy.
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Who Typically Invests in Mezzanine Loan Investments?
Mezzanine loan investments are generally suitable for:
- High-net-worth individuals
- Sophisticated private investors
- Family offices
FIXED INCOME INVESTMENTS
How Mezzanine Loan Investments Compare to Other Alternatives
Positioning within the spectrum of property-backed investment strategies
Compared with senior bridging loans, mezzanine loan investments generally offer higher potential returns but also greater exposure to project performance.
Compared with direct equity investment in property projects, mezzanine typically provides more structured repayment terms and defined interest arrangements.
This positioning makes mezzanine loan investments particularly relevant for investors seeking alternative property investments that sit between conservative debt and higher-risk equity strategies.
FIXED INCOME INVESTMENTS
Important Considerations Before Investing
Understanding risk, structure and due diligence
Mezzanine loan investments involve a higher degree of risk than senior secured lending and require careful evaluation.
SHORT TERM LENDING:
Refinanced using a development facility.
INTEREST PAYMENTS:
Structured with monthly interest payments.
HIGH RETURNS:
Due to the short-term nature of the lending.
SECURED LOANS:
Secured by a debenture over the company.
WHY INVEST WITH US
Asset Backed Investments With Low Entry Points
We adopt a disciplined allocation approach, concentrating on a limited number of carefully assessed investments.
- Invest from £25k.
- Multiple HNW investors group together.
- To fund mezzanine loans.
- Accessing institutional-style structures.
Property-Backed Approach
Opportunistic Investing Through Structured Mezzanine Loan Investments
Opportunistic investing through Starfortis provides structured access to short-term mezzanine loan investments secured against UK commercial property assets.
The strategy focuses on identifying assets with clear potential for enhancement, while maintaining a disciplined approach to security, underwriting and capital protection.
STARFORTIS AM
Investment Managers
Delivering tailored investment solutions to help you grow, preserve, and secure your wealth across diverse market opportunities
WHY INVEST WITH US
- Experienced team of professionals
- 50+ years combined investment management experience
- £20 million capital raised for property investment
FIXED INCOME INVESTMENTS
Learn More About Our Approach
Understanding structure, process and investor eligibility
We provide eligible investors with detailed information on structure, documentation and risk considerations before any investment decision is made.
You may also find it helpful to review our Bridging Loan Investments page to understand how senior and subordinated lending strategies differ within property finance.
Frequently Asked Questions
Common questions from investors considering Mezzanine loan investments
Are mezzanine loan investments considered fixed income investments?
They are commonly structured with defined terms and agreed interest returns, which is why many investors include them within their alternative fixed income investments allocation.
Are mezzanine loan investments asset backed?
They are typically linked to underlying property assets and structured through legal documentation that defines their position within the capital structure, although they sit behind senior lenders.
How do mezzanine loan investments differ from bridging loan investments?
Bridging loan investments are usually senior, first-charge positions with lower risk and lower return potential. Mezzanine loan investments are subordinated positions with higher risk and higher potential returns.
Who are mezzanine loan investments suitable for?
They are generally suitable for high-net-worth and sophisticated investors who understand private credit structures and are comfortable assessing investment risk.
Are mezzanine loan investments low risk?
Capital is supported by tangible collateral such as property rather than relying solely on contractual repayment.