Strategy
Our direct origination strategy is focused on the direct sourcing and structuring of primarily debt financings in transactions that deliver meaningful and measurable social impact to our borrowers and their respective communities across a broad range of project types that are not easily or efficiently financed through traditional lending channels. Our targeted origination approach is centered on an established yet growing relationship network with local governments, institutions of higher education, not-for-profit entities, and other borrowers that use the financing we provide, to fund economic development projects in infrastructure, education, healthcare, and housing.
Representative Credit Types
Real Estate
Special assessments / special tax transactions with proven developers
Senior Living
Construction and rehabilitation needs for independent living, assisted living, and memory care facilities
Economic Development
Tax increment, tax credit and other economic development incentive financings for developing and completed projects
Education
Education related projects including student housing, public and private education institutions and charter schools
Infrastructure
Primarily debt investments in infrastructure related projects including transportation, safety, social and other projects
General Government
General government needs sometimes require a special capital provider. PHC often fills that role in general obligation, lease appropriation or other needs.
Target Investment Characteristics
Credit
- Collateral-backed financings
- real estate
- contracts
- revenues
- Investment with the outlook for credit appreciation
- Construction risk OK
- Debt-focused with some equity appetite
- Distressed situations OK
- Unrated
Unique Structures Offered
- Drawdown bonds over construction period
- Stepped coupons
- Taxable bridge to tax-exempt bonds
- Master facilities financings
- PHC participation across capital stack including equity
- Bridge to EB-5 or tax credits
Security Instrument
- Hold sizes from $10-$100 million+ (target range is $20-$50 million)
- 10-30 year debt periods
- Fixed-rate or variable-rate
- Tax-exempt or taxable debt
- Private placements or limited offerings
- CUSIP bond preferred / loan acceptable
Social Impact Finance Framework
- Focus on projects with measurable social benefit
- Affordable basic infrastructure
- Access to essential services
- Affordable housing
- Employment generation
- Socioeconomic advancement and empowerment
- Purpose built direct origination platform
- Investing across asset classes, including
- Economic development
- Infrastructure
- Workforce housing
- Heathcare
- Education