1/8/2015

https://portal.sbrefunds.com/en/projects/11829-Touchstone-Capital-Partners-Fund-II--LLC---Notes--Debt

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Touchstone Capital Partners Fund II, LLC Notes (Debt)

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https://portal.sbrefunds.com/en/projects/11829-Touchstone-Capital-Partners-Fund-II--LLC---Notes--Debt

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Investors
2
Current Fund AUM
$500,000
Note Rate Range
5% to 8%
Minimum Investment
$50,000

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WelcometoTouchstoneCapitalPartnersFundII,LLC!
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Weunderstandthatadecisiontoallocatedollarstoapooledrealestateinvestmentfundisntmade
lightly,andwelookforwardtoprovidingyouwithalltheinformationyoullneedtomakean
educateddecision.Thegoalofthisintroductionistogiveyouahighlevelsummaryofthestrategy
oftheFundaswellassomebackgroundonthefundsprincipals(whoweare)andprinciples(how
werunourbusiness).
Withoverfiftyyearsofcombinedconstruction,realestatedevelopmentandfinanceexperience,the
Funds managing partners bring a skill set of uncommon depth and breadth to this venture.
Between us, Raymond Loughlin and I have personally executed a wide variety of real estate
transactionsandheldnearlyeveryroleintherealestatedevelopmentprocess,fromcarpenterand
electricians apprentice to general contractor and developer, from underwriter and originator to
equitysyndicatorandhardmoneylender.PleaseseetheManagementSectionforadditionaldetail
onthemorethan$400millionofrealestatetransactionswithwhichwevebeeninvolvedoverthe
pastfewyears.
The launch of this Fund is a natural next step in our partnership in fact Ray and I met in 2010
whenIwasfirstconsideringraisingmoneyforapooledmortgagefund.Atthattime,Iwashaving
some real success investing in small balance commercial nonperforming notes (NPN). Finding
myselfinaspotwhereIhadaccesstomoredealflowthanavailablecapital,Ibegantheprocessof
draftingabusinessplanandprivateplacementmemorandumtoraiseasmallfundtoinvestinNPN.
RayandIgotalongreallywellrightfromthefirstmeeting,andourgoalsandbusinessphilosophies
linedupverycloselyexceptthatRaywasntinterestedinapooledfundwithafocusonNPN.For
a variety of reasons I decided to put the fundraising on hold, and Ray and I formed a more
conventional operating partnership. Now, after four years of successful collaboration on principal
realestateinvestments(bothdebtandequity),werereadytotakeourpartnershiptothenextlevel
leveraging our collective knowledge, experience and network of contacts to provide consistently
solidreturnstoawiderarrayofinvestors.
WeengagedFairwayAmerica,LLC,themarketleaderinthefieldofsmallbalancerealestatefunds
to assist with the structuring and creation of the Fund, and also to perform the ongoing backend
fundadministrationandaccountingfunctions.FairwayAmericaFundVIILPismakinganinvestment
intotheFundandwillownaminorityshareofTCPAssetManagement,LLC.Wearepleasedtohave
FairwayaspartoftheteamandbelievethattheirinvolvementwillbenefittheFundanditsinvestors
significantly. For more information about Fairway America, LLC you can visit their website at
www.fairwayamerica.com.
The Fund will invest primarily (at least 80% of its assets) in first lien position mortgages, with a
secondary focus on mezzanine debt and preferred equity investments. We think this blended
approachhasthepotentialtoprovideveryattractiveriskadjustedreturns.
InitiallyweanticipateourloanoriginationswillbeconcentratedinthecorridorbetweenProvidence,
RhodeIslandandBoston,Massachusetts,asthatswhereourexistingborrowerbaseandnetworkof
developers is primarily located, and these are the markets with which we are most familiar. In
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somewaysweareveryfortunatethatournaturalmarketishereintheNortheast,whererealestate
values have held up relatively well throughout the recent market cycles. An article in the Boston
Business Journal in August 2014 sums it up perfectly: Eastern Massachusetts is a notoriously
difficultplacetobuildhousing,withascarcityofavailablelandandtoughzoningrulesthattendto
limit multifamily construction. This contributes to some of the highest real estate prices in the
country.
We will broaden that geographic reach when it comes to mezzanine debt and preferred equity
investments, as well leverage our more institutional type contacts to generate these leads. We
expecttotakesmallerpositionsinlargerdeals,sotherewillbemorecomprehensiveduediligence
packages (appraisal, capital needs assessment, environmental reports etc) available for desktop
underwriting.
When it comes to evaluating prospective investments, we start with an oldschool, no nonsense
approach, asking ourselves, would I do this deal? We have to put ourselves in the shoes of the
sponsor,andunderstandwhattheirrealupsideis,thelikelihoodofsuccess,severityofpotentialloss
incaseofafailure.Ifwecansaytoourselvesthatwedbecomfortabledoingthedeal(becausein
the case of default, thats what well do step into the shoes of the sponsor), then we put the
potential transaction through a more thorough underwriting and due diligence process. To the
extent we do have defaults in the portfolio, Ray and I have direct experience in workout and
foreclosure situations, and we know how to strike a balance between the sometimes competing
goals of maximizing the value of the collateral and minimizing the delays in recouping the
investment.
StrikingabalanceisreallywhatlaunchingthisFundisallabout.Wehavecometoapointwherewe
haveconsistentaccesstohighqualitydealflow,butweoftenhavetopassonopportunitiesbecause
were personally fully invested and cant execute quickly enough using the onedealatatime
syndicationmodel.Inthepastwevebeenhesitanttoraiseablindpooledinvestmentfund,aswe
didnthavetheinfrastructureinplacetomanageinvestors,andweneverwanttoputourselvesin
the position of having to do deals just to keep investors dollars working. The structuring of this
Fundcarefullybalancesourneedforflexibilitywiththeimplementationofsystemsandprocessesto
putusinthebestpossiblepositiontocontinueourrecentsuccessonalargerscale.
Between a comprehensive Private Placement Memorandum, Investor Term Sheet, Investor
Presentation/slidedeckandourwebsite,weveputtogetheralotofinformationontheFundandits
principals. All the information and documentation is very helpful and important, but the strongest
statement we can make about our fund is to invest our own dollars Ray and I will both have
personalinvestmentsinthefund.Ifyoudecidetoinvestalongsideus,welltakethestewardshipof
yourinvestmentdollarsjustasseriouslyasourown.

Sincerely,
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TomMeade
TouchstoneCapitalPartnersFundII

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Inception: November 03, 2014
Funding Ends: Open-Ended Evergreen
Only approved accredited investors can access this page
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Created by
Tom Meade
Touchstone Capital Partners
Boston, MA
2 listings
Contact View Profile

Fund Overview
Note Rate Range: 5% to 8%
Note Term Range: 1 to 5 Years
Distrubution Frequency: Quarterly
Maximum Offering: $25,000,000
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Management Fee: 2.0%

Maximum Leverage: 65%
Target Leverage: 50%
Fund Administrator: Fairway America
Securities Counsel: Ater Wynne
Accounting Firm: Spiegel Accountancy
Current Fund AUM: $500,000

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