A multi-layered approach to deal selection
We source the loans, monitor them, reinvest repayments, and rebalance your portfolio for you.
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
Proven expertise and results
Answer a few questions, and Heron Finance will recommend a strategy that aligns with your goals and risk tolerance.
Choose between a more conservative strategy with more diversification, vs. a more concentrated strategy that targets higher returns.
Managers with
+10 years of experience
Collectively originated over
$1 billion in loans
Loss rates ranging from
0-1.3%
Only the most creditworthy deals
We take steps to mitigate risk on the deals we invest in
Asset-backed loans
All loans must be secured against collateral such as real estate, consumer loan portfolios, etc.
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.
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.
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.
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.
Diversification across industry and geography
Educational center in Virginia
U.S. preschool and early preschool development services
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
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
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 structured over $4B transactions.
Our team has over 30 years of investment management.
We are the first robo-advisor exclusively focused on private credit.
Take the first step towards a more diversified portfolio
- Access deals you can’t get anywhere else
- Earn a target 11-16% net APY
- Liquidity in as little as 30 days from request
Disclaimers and footnotes
∗ 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.