We have found our product is popular across a number of Borrower types, including:
- Fund LPs who want to fast track liquidity from their illiquid fund stakes without sacrificing upside
- NAV lending to those situations where the traditional providers have shied away due to the smaller size, later stage funds or smaller GPs
- Loans to GP entities to facilitate larger commitments in future fund raises
- Executive loans against carried interest and LP stakes and bonus payments
Warana’s core products tend to be loan solutions but can be adapted to preferred equity with and without upside sharing components.
We seek to concentrate on smaller, more complex opportunities, that are often overlooked by banks and other NAV lenders. Our fund’s target loan size is $5-$50 million dollars over a period of 1-3 years, with capacity to scale up beyond this range depending on circumstances. Where other lenders might have diversification, strategy type or other requirements, we try to avoid having arbitrary rules and look through the asset level risk exposures. Similar to our Secondary Funds, we favor situations that have fundamental value on through earnings basis or asset value and will give credit to uncalled capital, management fee streams and future potential carried interest payments. We do not typically require personal guarantees for our loans.
We think we can work faster than regular banks and our experience in fund transfers can simplify loan documentation.