Investment Strategy

Our strategy emphasizes two pillars: income generation and capital preservation. Loans are secured not only by borrower business income but also by business assets, real estate, and borrower creditworthiness. In the rare case of default, these assets provide multiple recovery paths, mitigating downside risk.

For investors building diversified portfolios, private credit serves as a complement to equity, balancing volatility with steady cash flow.

Types of Investments

• * Term Loans – Lump-sum financing repaid with principal + interest over a set schedule.
• * Equipment Financing Loans secured by business equipment, offering collateralized protection.
• * Commercial Mortgages Financing backed by office buildings, retail centers, warehouses, or multifamily properties.

How Investors Earn

Investor returns are generated through the interest paid by borrowers on each loan in the fund’s portfolio. These loans are structured with fixed terms and interest rates, providing clarity and predictability. Here’s how it works:

·        Interest Payments – Businesses borrow at higher rates than banks typically offer. The fund collects monthly interest payments on these loans.

·        Monthly Distributions – After expenses and management fees, these payments are distributed to investors in the form of monthly dividends.

·        Principal Protection – Loans are secured by borrower income, business assets, or real estate. In the event of borrower default, collateral can be liquidated to recover principal, providing a layer of downside protection.

·        Liquidity Option – Investors can request quarterly liquidity, creating a balance between yield and accessibility.

This structure allows investors to benefit from a steady income stream without the operational complexities of owning or managing businesses or real estate directly.

Returns

* Current Dividend Yield: 8.3% annualized

• * Return Source: Monthly interest payments from borrowers
• * Variability Dividends may adjust based on loan performance and new portfolio acquisitions

Why Private Credit?

Private credit provides investors with direct access to lending opportunities traditionally dominated by banks. It offers steady income, reduced volatility, and lower correlation to public markets, making it a valuable diversifier. 

Debt investments are structured with fixed terms, capped upside, and priority repayment in case of borrower default, offering investors more security than equity positions.

Debt vs. Equity at a Glance

• * Debt: Fixed income, secured by borrower assets, no ownership dilution
• * Equity: Variable returns, dependent on rental income + appreciation, ownership dilution possible

Risks & Considerations

While TheSeattleFund Private Credit is designed for stability and downside protection, all investments carry risk. Key risks include:

• Credit Risk Borrowers may default on loan obligations. While loans are secured by income and assets, recovery outcomes may vary.
• 
  
• Liquidity Risk Although quarterly liquidity is offered, redemptions are not guaranteed and may be limited during periods of high withdrawal requests.
• 
  
• Market Conditions Broader economic conditions, such as interest rate changes, credit cycles, or recessions, may impact borrower repayment ability and loan performance.
• 
  
• Valuation Risk The underlying loan portfolio is privately held and not publicly traded. Valuations are based on internal assessments and may not reflect real-time market values.
• 
  
• Concentration Risk While diversified, exposure to certain sectors or geographic markets could affect performance if those areas face significant challenges.
• 
  

Understanding these risks is essential for making informed investment decisions. Investors should evaluate whether private credit aligns with their risk tolerance, liquidity needs, and portfolio objectives.

Closing Note

TheSeattleFund Private Credit is built to deliver consistent income, diversified exposure, and capital protection in today’s shifting market environment. With a proven track record, experienced management, and a disciplined approach to underwriting, this fund offers investors the ability to participate in private credit with confidence.

If you’re seeking predictable monthly income, strong downside protection, and a smart complement to equity investing, TheSeattleFund Private Credit is a compelling solution.