How we invest

A multi-layered approach to deal selection

Relationship building

We identify lending partners with an impressive track record in the private credit sector

Risk mitigation

We filter their active deals through a set of finely-tuned investment criteria. Deals are then presented to our investment committee for final approval

Deal selection & monitoring

We negotiate with our lending partners to acquire a position in one (or more) of their deals, and proactively monitor our investments

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Credit fund partners

Proven expertise and results

Our credit fund partners are led by managers with at least 10+ years of experience in the credit sector, all having previously served at prominent financial institutions such as Deutsche Bank and DoubleLine.

Our partners have collectively originated over $1 billion in loans, with loss rates ranging from 0-1.3%.

Managers with

10+ years of experience

Collectively originated over

$1 billion in loans

Loss rates ranging from

0-1.3%

How we mitigate risk

Only the most creditworthy deals

All loans must be secured against collateral such as real estate, consumer loan portfolios, etc.

Asset-backed loans

All loans must be secured against collateral such as real estate, consumer loan portfolios, etc.

The underlying borrower must maintain a ‘first loss position’. This means that the borrower must incur the first losses on any deal, before before our investors incur losses. 

Skin in the game

The underlying borrower must maintain a ‘first loss position’. This means that the borrower must incur the first losses on any deal, before before our investors incur losses. 

We stress test potential losses in a deal (estimated based on the historical performance of assets) to make sure that our principal is well-protected using securitization structuring techniques.

Forecasting & modeling

We stress test potential losses in a deal (estimated based on the historical performance of assets) to make sure that our principal is well-protected using securitization structuring techniques.

Many deals have a Deposit Account Control Agreement (DACA). This enables us to certify that our loan repayments are made in first position, meaning the cash flow from the borrower’s operations pays our loan back first, before the borrower can access it.

Account management

Many deals have a Deposit Account Control Agreement (DACA). This enables us to certify that our loan repayments are made in first position, meaning the cash flow from the borrower’s operations pays our loan back first, before the borrower can access it.

Deal monitoring

Trust, but verify

We review monthly reports from all borrowers on the state of their business, as per the borrowing agreement.

Our experienced credit team analyzes the business’ financials on an ongoing basis to verify that no covenants have been breached.

We maintain regular contact with our partners to ensure alignment on borrower diligence and communication.

Current deals

Diversification across industry and geography

Educational center in Virginia

U.S. preschool and early preschool development services

Educational center in Virginia
Our participation

We acquired a position in a $4MM+ deal to help construct an early childhood development center in Virginia for one of the most trusted childhood education brands. 

APY net of fees
12%
Maturity date
Jan 6, 2025

Why we like this deal

The loan is senior secured (backed by the property itself), from a very company that has completed this type of work hundreds of times before. An added benefit is that this loan is the only one on the borrower’s books, and the borrower can't take on new debt without the approval of the loan administrator.

Consumer lender in Latin America

Mexico-based microlender focused on direct consumer loans

Consumer lender in Latin America
Our participation

We acquired 15% of this senior secured loan to a Mexico-based borrower. The deal matures nine months after our purchase date, meaning we are less exposed to duration-related credit risks.  

APY net of fees
12%
Maturity date
Oct 31, 2024

Why we like this deal

The borrower has been profitable for each of the last three years, with the C-suite executives and board members being made up of very experienced operators and influential politicians in Mexico. The deal also has strong covenants and excess collateral in place. 

Florida-based HVAC business

Florida-based HVAC business acquired by industry professional

Florida-based HVAC business
Our participation

We acquired over 10% of this $4.5MM loan. The loan is senior secured, with a small percentage (4.5%) amortizing in month nine of the loan, and the remaining principal due in full on the maturity date.

APY net of fees
13%
Maturity date
Aug 10, 2025

Why we like this deal

This loan contains strong collateral, including all assets and cash flows of the borrower, as well as a personal guarantee from the business owner, who maintains over $20MM in total assets. Additionally, the company cannot take on new debt without the approval of the loan administrator. 

You’re in good hands

Our world-class team provides access and results

Our investment committee has decades of experience, and has originated and structured over $5B of private credit transactions.

Learn more

Transparency builds trust

For a deeper dive into how Heron Finance operates, please click below:

Our approach to liquidityHow we select deals

Take the first step towards a more diversified portfolio

  • Get started with as little as $100

  • Earn a target 11-16% APY net of fees

  • Liquidity in as little as 30 days from request

    Full policy
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APY is not hypothetical but based on underlying APRs borrowers pay in existing loans. Create an account to view more details about those loans.


The information on this website does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Further, none of the information contained on this website is a recommendation to invest in any securities or a recommendation of any interest in any investment offered by Warbler Labs, Inc. or any of its subsidiaries (collectively, “Warbler”).

Any financial forecasts or financial returns, whether in the form of dividends or capital appreciation displayed on this website are for illustrative purposes only and are not a guarantee of future results. Private credit investments are subject to credit, liquidity, and interest rate risk. In the event of any default by a borrower, you will bear a risk of loss of principal and accrued interest on such loan, which could have a material adverse effect on your investment. A borrower may default for a variety of reasons, including non-payment of principal or interest, as well as breaches of contractual covenants. Credit risks associated with the investments include (among others): (i) the possibility that earnings of a borrower may be insufficient to meet its debt service obligations; (ii) a borrower’s assets declining in value; and (iii) the declining creditworthiness, default, and potential for insolvency of a borrower during periods of rising interest rates and economic downturn.

No communication by Warbler or any of its affiliates through this website should be construed or is intended to be investment, tax, financial, accounting, or legal advice. Warbler Advisory, Inc. is an SEC-registered investment advisor (RIA). Such registration should in no way imply that the SEC has endorsed the entities, products or services discussed herein.