Rated Note Feeder Funds for Private Credit
Rated Note Feeder Funds For Private Credit
Rated-note feeder funds broaden access to private credit by offering investors a debt instrument backed by interests in a master fund or a managed pool. This format can accommodate RIAs, family offices, and—where ratings and covenants meet their standards—insurance buyers. We design the structure, coordinate the rating path, appoint trustee and administrator, and execute a controlled placement.
Facility $50M–$90M+ • Retainer $75K • Success ~2.0% • Timeline 60–120 days • Format Reg D (506(c)) or Rule 144A
Manager Profiles
Private Credit & Specialty Finance
Track record and audited financials preferred.Investor Base
RIAs • Family Offices • Insurers
Subject to eligibility and ratings.Core Deliverables
Structure • Rating • Trustee/Admin
Placement to allocations and close.Governance
OC/Covnants • NAV Policy
Cash controls and reporting cadence.Liquidity
Term Notes or Periodic Windows
Aligned to asset duration.Reporting
Monthly/Quarterly Packs
Holdings, performance, compliance tests.Third Parties
Trustee • Paying Agent • Admin
Custodian and audit coordination.Minimums
$50,000,000+
Aggregation possible; economics may adjust.SOC 1 Type II preferred; tested investor onboarding, AML/KYC, and capital activity controls.
Clear waterfall, notice mechanics, and events of default; reconciled cash movements.
Documented NAV policy; independent pricing sources and exception logs.
NDA, tracked redlines, and a consistent data room structure (offering docs, financials, compliance).
Scope Of Work
| Deliverable | Detail |
|---|---|
| Structure & Terms | Feeder SPV issuing rated notes; waterfall, OC, tests, and consent mechanics aligned to the master fund or managed pool. |
| Rating Pathway | Collateral memo, model, and stress; draft terms and disclosure; coordination of agency Q&A. |
| Service Providers | Trustee, paying agent, administrator/TA, custodian, audit; RFPs, fee schedules, and operational playbooks. |
| Placement | Targeted outreach to RIAs, family offices, platforms, and qualified institutions; allocation and closing process. |
Program Architecture
- Issuer: bankruptcy-remote feeder SPV; notes aligned to asset duration and cash generation.
- Collateral Flow: feeder investment into master fund or managed pool; look-through reporting where applicable.
- Waterfall: fees → interest → OC and tests → residual; triggers for breaches and cure periods.
- Liquidity: term notes or scheduled liquidity windows; clear notice and gating rules.
- Offering: Reg D (506(c)) for accrediteds or Rule 144A for QIBs; ratings where required by investors.
- Reporting: holdings, performance, test results, and compliance certifications on a fixed cadence.
Economics & Controls
| Term | Market Practice | Notes |
|---|---|---|
| Note Tenor | 1–5 years typical | Aligned to asset duration and reinvestment rules. |
| OC / Tests | Minimum OC with performance triggers | Protects seniors; supports rating outcome. |
| Fees & Expenses | Admin, trustee, audit, counsel | Disclosed and charged per documentation. |
| Liquidity | Term or periodic windows | Notice periods and gates set in advance. |
| Transparency | NAV policy and exception logs | Independent pricing and board/IC oversight. |
Illustrative Timeline (60–120 Days)
| Week | Milestone |
|---|---|
| Weeks 1–3 | Structure memo; draft terms; service-provider RFPs; initial rating materials prepared. |
| Weeks 4–7 | Agency feedback; document suite and disclosure; administrator and trustee appointments; platform onboarding (if applicable). |
| Weeks 8–10 | Investor outreach; soft-circles; operational testing (subscriptions, KYC, cash flows). |
| Weeks 11–16 | Allocations; signing; initial funding; reporting cadence established. |
Readiness Checklist
- Manager track record, audited financials, and compliance policies.
- Clear investment guidelines and risk limits; concentration and sector caps.
- NAV policy, pricing sources, and exception handling documented.
- Administrator capability (TA/AML/KYC), trustee/paying agent, custodian shortlist.
- Draft disclosure outline and data-room structure.
Fees, Minimums, And Terms
| Item | Terms | Notes |
|---|---|---|
| Minimum Facility | $50,000,000–$90,000,000+ | Aggregation is workable; economics may adjust. |
| Retainer | $75,000 (non-refundable) | Funds structuring, rating engagement, and documentation lift. |
| Success Fee | ~2.0% of funded amount | Payable at closing; tiered by size and structure. |
| Timeline | 60–120 days | Contingent on complete data and timely responses. |
Provide strategy overview, target size, draft guidelines, service-provider preferences, and reporting cadence. We will respond with terms, a rating plan, and an execution calendar.
Minimums & Fit
- Established managers with verifiable track record and governance.
- Strategy suitable for note format and periodic reporting.
- Service providers prepared for KYC/AML, transfer agency, cash control.
- No “platform” schemes or non-verifiable assets.
Financely provides investment and merchant banking advisory on a best-efforts basis. All engagements require KYC/AML, appropriate financial statements, and paid milestones. Any securities activities, where applicable, are conducted through a licensed chaperone, Member FINRA/SIPC. This page is not an offer to sell or a solicitation to buy any security. Eligible investors only, pursuant to valid exemptions (e.g., Rule 144A to QIBs or Reg D 506(c) to accredited investors) and definitive documentation.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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