Investor Due Diligence
Comprehensive investment criteria, governance standards, and performance track record supporting qualified investor evaluation.
Investment Criteria
Distressed Mortgage Notes & REO
- • Mortgage notes: 40%+ discount to face value
- • REO assets: 35%+ discount to estimated value
- • Minimum portfolio size: $15M face value
- • Recovery timeline: 18-36 months
Risk Management Framework
- • Disciplined underwriting at acquisition
- • Diversification across portfolios and geographies
- • Integrated partner network for execution
- • Quarterly risk monitoring and reporting
Sub-Performing Credit
- • Credit portfolios: 50%+ discount to par
- • Mix of residential and commercial credit
- • Minimum portfolio size: $20M par value
- • Recovery timeline: 24-48 months
Governance & Compliance
- • Independent audit and compliance oversight
- • Transparent reporting and documentation
- • Regulatory compliance across all jurisdictions
- • Investor advisory board and feedback mechanisms
Fund Structure & Terms
Investment Terms
Fund Structure Limited Partnership
Investment Minimum $2M - $5M+
Target Fund Size $200M - $500M
Investment Period 3 - 5 Years
Fund Duration 5 - 7 Years
Fee Structure
Management Fee 1.5% - 2% annually
Incentive Fee 20% of net profits
General Partner 1% - 3% commitment
Hurdle Rate 6% - 8% IRR
Preferred Return 6% - 8% annual
Investor Qualification Requirements
Mercuri funds are available only to qualified investors meeting the following criteria:
- • Accredited investors as defined by SEC Rule 501 of Regulation D
- • Institutional investors and sophisticated financial institutions
- • Knowledge and experience in distressed asset investing
- • Ability to hold investments for extended periods without liquidity
- • Confirmation of no conflicts of interest with fund operations
Performance Track Record
Fund I-III (2008-2015)
AUM
$900M
MOIC
2.4x
Net IRR
12%
Early institutional funds focused on post-crisis recovery with excellent risk-adjusted returns.
Fund IV-V (2016-2021)
AUM
$1.1B
MOIC
2.8x
Net IRR
15%
Mid-vintage funds with platform expansion and multi-strategy approach.
Fund VI+ (2022-Present)
AUM
$400M+
Invested (est.)
$280M+
Target IRR
15%+
Current generation fund with enhanced governance and community focus.