Elevate Your Investment Strategy
The Tempo Advantage Fund LLC (“TAF”) is now available to accredited investors.
What is TAF?
The Tempo Advantage Fund focuses on capital preservation and risk mitigation while still having upside potential. Click a link below to read more.
16-18%
Targeted Annual Net Return
8%
Annual Preferred Return
Quarterly Distributions
5-7 Years
Close-Ended Fund Term
80/20
Performance Split Between Investors and Manager
Understand how our team delivers results
Balanced Risk
Tax Efficient
Higher Return
Mezzanine loans have higher rates than regular loans; preferred equity pays more than common equity.
Fund Strategy
The Mezz Debt strategy prioritizes meticulously underwritten investments that offer both security and potential upside.
Crafted to yield robust, consistent returns with an interest reserve, this fund contrasts equity investments by focusing on high value-add projects helmed by sponsors with solid track records and substantial equity buffers.
Fund Advantages
Steady, predictable income for investors
Predictable Income Stream: Mezzanine debt and preferred equity often pay out predictable dividends, providing a steady income stream. This can be particularly attractive for investors looking for regular returns.
Flexible, tailored investment terms
Flexibility in Terms: Mezzanine debt can have more flexible terms and covenants than senior debt, allowing for more tailored investment structures. Similarly, preferred equity terms can also be structured flexibly to meet specific investment goals.
Potential for equity-like upside
Equity Upside Potential: Mezzanine loans sometimes include warrants or conversion rights to equity. This means if the property does exceptionally well, mezzanine investors can benefit from the upside, similar to equity investors.
Higher repayment priority than common equity
Priority in Case of Default: In the event of a default, mezzanine and preferred equity holders have priority over common equity holders in terms of repayment. This priority provides a layer of protection compared to common equity.
Why Mezz Debt Now?
The Tempo Advantage Fund was established in response to the unique economic landscape of rising interest rates and inflationary pressures, fueled by the Federal Reserve's significant rate hikes. This environment challenges many high-quality projects with liquidity constraints, yet opens doors for astute investors. By providing Mezzanine financing, the Fund aims to support these valuable projects, offering a balanced approach to achieving higher returns while safeguarding against risks. Mezzanine financing emerges as the optimal solution over capital calls, appealing to both new and existing investors by ensuring financial security and the potential for substantial returns, ultimately providing critical liquidity to give worthy projects an advantage to reach full stabilization and exit at the opportune time.