Non-Listed REIT (CRE Debt)
A Simplified Framework for Initial Screening
Happy Sunday! Hope your 2025 is off to a good start.
Today, I’ll show you a quick and dirty way to gauge a credit fund. I bet you can guess which investment firm operates this fund - share your guesses in the comments below!
The fund in question is an externally managed non-listed credit REIT (which means you’ll pay someone for the privilege of buying shares on your behalf). The nomenclature doesn’t matter for our purposes too much: you can use the same methodology to do a quick screen of private or publicly traded mREITs, BDCs, private credit funds, etc.
What’s important to you is quickly figuring out whether any given fund is worth a closer look. And this is exactly what I’ll show you how to do. Don’t fret: the math is not complicated, and ChatGPT can do most of it (I included prompts).
Please note: this is not a substitute for proper due diligence. It is simply a quick screen to assess the margin of safety and decide whether you want to spend more time on fund financials.
Smaller funds that don’t issue shares (nor file with SEC) will have financial statements that look different. This article will teach you how to interpret them:
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Please remember, the deal is presented as a case study, and all relevant information has been changed to protect the identity of the sponsor. This is not investment advice.
