Investment objective in real asset-backed mezzanine loans (PRA):

Provide loans to Small and Medium Enterprises (“SMEs”) backed by real assets

Focused investment strategy

  • Provide financing through PRA to small and medium-sized companies for acquisition, growth, recapitalization and working capital.
  • Asset-Backed Loans with various types of collateral: real estate, financial assets and contracts.
  • Focused on the following investment strategies: subordinated / mezzanine / hybrid / convertible, credit investments, past-due portfolios / foreclosed properties and credit portfolios originated by third parties.
  • Financing with different levels of priority: subordinated/mezzanine, without leverage and hybrid/convertible.
  • Investments in different sectors: real estate/housing, financial, energy and others.

Four investment strategies.


Subordinate / Mezzanine / Hybrid / Convertible

  • Housing development debt where repayment is based on a percentage of underlying home sales.
  • Debt service subordinated to the payment of principal and/or interest of another credit or financing.
  • The collateral may not be encumbered in the first or priority level.
    Convertible to the debtor’s capital.

Credit Investments

  • Debt to SMEs with limited credit histories.
  • Reduction of credit risk by taking real assets collateral.
  • The primary source of debt service payment are the flows of the real asset in guarantee, or failing that,
    company flows.

Overdue portfolios / Foreclosed properties

  • Overdue mortgage portfolio or portfolios of foreclosed properties from banks and Sofomes, which are managed by special administrators with limited capital, but with experience in collecting this type of asset.
  • Traders charge an administration fee and a success fee based on the recovery of the portfolio.

Loan portfolios originated by third parties

  • Debt from non-bank financial entities (Sofomes), banks or other financial entities backed by loan portfolios.
  • Direct purchase of credit portfolio originated by third parties.
  • Debt secured by loan portfolios, but with a portion of the expected return based on portfolio performance or company growth.