Portfolio Management

As a company, our ability to maintain the right mix of products and programs is critical to our success. Portfolio Management - the second prong of our strategy - is an indispensable component of creating industry leadership. We excel in developing innovative capital products designed to provide creative solutions to our borrowers while still delivering superior risk adjusted returns to our investors.

Once a loan is approved and closed, Tremont's Portfolio Management team further builds its relationship with our borrowers throughout the investment cycle.  Having become intimate with each asset's business plan prior to loan closing, Tremont's portfolio management team continues to work closely with property owners to ensure the project is on target with its business proforma, responding quickly to market changes and other events that may otherwise derail an asset. 

Tremont currently manages multiple funds and programs with finite lives or limited and specialized target investments.

Fund I

Tremont manages a national mezzanine debt program for an open-ended fund with over $2 billion in assets invested in various real estate strategies. Fund I is designed to fund stabilized mezzanine loans. Investments are typically subordinate to life company or CMBS first mortgages by creating a junior “B” or mezzanine position. Individual mezzanine loans can range from $3-30 million, have loan-to-value up to 90% and loan terms up to 10 years. Tremont sources, underwrites, closes and services these loan assets. The current portfolio consists of 13 assets with over $53 million invested in mezzanine debt on approximately $365 million of underlying real estate.

Fund II

Tremont co-manages this private equity fund together with a New York-based owner, developer and manager of real estate. Fund II targets specialized real estate assets for turnaround scenarios. Fund II investors are high-net-worth individuals. This fund is fully invested and its current portfolio consists of 12 assets with an estimated total current market value in excess of $109 million based on third party appraisals.

Fund III

Fund III targets opportunistic returns of 12-15% on mid-market transactions. This fund is a joint venture between Tremont and a New York-based hedge fund with over $4 billion in assets. Fund III targets 50-90% loan-to-value whole and mezzanine loans. This fund has total capitalization of over $64 million since inception.  The fund is not making new commitments.

Fund IV

Fund IV is a $138 million income fund invested for a pension fund and Tremont. Fund IV targeted value-added bridge loans and has a total portfolio of approximately $210 million in whole bridge loans. The whole loans are made by an affiliate of Tremont and then the economics are subdivided with the Tremont affiliate retaining the senior piece and selling the subordinated tranche to Fund IV. Fund IV invested up to 90% loan-to-cost in office and retail assets ranging from $14-60 million in capitalization. This fund is fully invested.