Providing liquidity by investing in illiquidity

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 M360 Advisors was founded on four core beliefs:

  • Illiquidity Risk is Different than Credit Risk

    This is an important distinction. Liquidity risk is often much more tolerable than credit risk because it is typically based on factors that do not relate to a borrower’s ability to repay a loan. This is particularly relevant when considering short-term, self-liquidating assets, managed in an open-ended fund structure.

  • Focus on Need-Driven (not Price-Driven) Borrowers

    We focus on investment opportunities where the terms of the loan are driven by something other than price. Often, these investment opportunities entail a borrower in need of immediate liquidity or a property that is in “transition.” In other words, there is an asset-specific story that results in a much more attractive investment yield than that of conventional loans. Asset-specific risk is much easier to control and manage than broad-based market risk, which cannot be diversified. We like situations in which the asset-specific upside risk more than offsets any potential market downside risk.

  • Primary Market Access = Better Vetting and Better Visibility

    We’re not looking for just any high-yielding investment opportunity. We are looking for the right investment opportunity. Exposure to the primary markets yields better market visibility and, therefore, improved decision making, while avoiding the adverse selection common in secondary market transactions.

  • Opportunity Exists in Ripe, Underserved Markets

    We’re all about the power of the niche. Hence, we traffic – more than our peers – in corners of the market that are less competitive and less efficient.