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Private Debt

Dancap allocates between 10% to 20% of its overall portfolio to Private Debt investments through third party funds, co-investments and direct investments.

The Dancap Family Investment Office has a long history of investing in various types of Private Debt funds and vehicles.

We look to partner with managers that have the ability and experience to invest in stable, operating companies or assets across all parts of the credit cycle. Our Private Debt funds focus on many strategies including: senior-secured sponsored-backed lending, private lending, first and second mortgages on real-estate backed assets and developments and second lien/ mezzanine loans. Generally speaking, we don’t invest in first-time or second-time funds and wait until there is a verifiable track record with a history of exited investments.

Dancap seeks to invest in both open-ended and closed-end funds, as well as a direct-by-deal basis. We prefer that our Private Debt investments contain stable monthly incomes or quarterly income distributions. We believe barriers to entry in the second lien and mezzanine markets should create an attractive illiquidity premium for investors. In our fixed income portfolio, we seek investments with a minimum 10% net IRR for senior secured lending and 15% plus for second lien or mezzanine loans.

Dancap seeks to invest with active managers that have verifiable track records and demonstrated success across various market cycles. Their success should also be reflected in their ability to acquire, manage and exit investments relative to their peers. We partner with managers that have demonstrated best practices in all facets of their management. Dancap expects to pay market competitive management fees and expects complete transparent information from managers such that we can conduct our comprehensive diligence and monitor results.

Our Senior / Mezzanine Private Debt Minimum Return Targets Net of Fees, Deductions, and Non-Recoverable Foreign Taxes

10% - 15%

Net IRR

1.5x - 1.75x

Net Multiple

1st & 2nd

Quartile Manager Rankings

Our Private Debt Criteria

For an overview of our investment criteria, please select from one of the below

Dancap’s Investment Parameters for Individual Private Debt Loans are summarized below:

  • Companies that have a proven product or service with demonstrable market demand and minimal sensitivity to the economic cycle
  • Fundamentally sound business plan that supports growth
  • Companies with a diversified customer and supplier base
  • Senior position on the capital structure
  • Dancap seeks to allocate $1M to $3M per investments and targets a net IRR of 10% plus

Dancap’s investment parameters for fund investments is summarized as:

  • We tend to avoid mega-sized funds and target funds managing US$200 million - $2 billion
  • Dancap invests in funds that have generated top quartile performance across multiple funds
  • Incorporates the flexibility to pursue a dynamic investment approach, allowing for meaningful changes in interest rate and credit spread exposures across the market cycle
  • Targets a combination of income and capital appreciation as return to investors
  • Fund managers that will provide Dancap with co-investment opportunities
  • Dancap seeks to allocate up to US$10 million in an individual investment theme depending on Dancap’s relationship and experience with the fund manager Dancap tends to avoid first-time funds

Do you meet the above criteria? Get in touch.

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View our Private Debt Portfolio

Our Private Debt portfolio is invested in both Corporate Debt strategies and Real Estate Debt strategies in more than a dozen managers around the globe

View our Private Debt Portfolio