Mosaic is committed to producing differentiated returns for its investors while providing a high degree of principal protection through filling unmet needs in the real estate capital markets. Mosaic further intends to maintain a strong alignment of interests with investors through transparency and a unique fee structure. The Mosaic team’s collective $30B+ of real estate and lending experience, which encompasses more than three decades, translates to deep industry and sourcing relationships, as well as strong due diligence and asset management capabilities.
Founding Principles
Respect
Treat each individual (Mosaic team, investors, borrowers, and community) with the utmost respect. This is the essence of all that Mosaic stands for and the ideal that informs everything we do.
Meet Unmet Needs
Focus on markets and opportunities where there is an unmet financing need and a disconnect between perceived and real risk.
Alignment of Interest
Design fee and fund structures that best align the interests of the manager with those of investors in order to create a companywide commitment to serving investors.
Pay Careful Attention to Global Macro and Financial Industry Regulation
Invest great energy to stay atop a volatile global economy and uncertain regulatory climate in order to establish research based investment strategies to best capitalize on these trends.
Principal Preservation
Protecting investor’s principal is our main priority. We aim to achieve this by investing only in viable and well-located real estate projects with the staying power to ride out economic downturns.
Produce a Predictable Inflation-Beating Return
Invest in opportunities where the cash flow is predictable rather than speculative, and be cognizant of the deleterious effects of inflation when designing investment strategies.
Speed and Certainty of Execution
Strive to maintain a reputation and brand for responsiveness and certainty of execution in meeting borrower needs, creating the potential to attract superior deal flow and higher yields.
Investor Empowerment Through Education and Transparency
Educate investors as to the macroeconomic basis for all investment strategies and offer ongoing updates in the most transparent manner via quarterly letters and conference calls.
Strategies
Mosaic Real Estate Credit
Launched in the Spring of 2015, Mosaic Real Estate Credit, LLC (“MREC”) is Mosaic’s debt investment platform. MREC’s strategy is designed to be opportunistic in addressing the real estate capital markets, with a primary focus on meeting the needs of real estate borrowers that are currently not being met by traditional lenders operating in a more stringent post-crisis regulatory regime.
MREC provides capital to successful real estate entrepreneurs aiming to add value to their assets over a 1-3 year period. An investment can take the form of a first mortgage loan, as well as mezzanine or preferred equity structures. MREC has a limit of 70% Loan-to-Value. The unique fee structure is designed to insure optimal alignment between the investment management team and investors. MREC will provide investors with the opportunity to request liquidity on an annual basis, after an initial two year investment commitment.
Investment Criteria
- Viable Real Estate: Transact on well-located real estate that has proven demand in today’s market.
- Experienced Borrowers: Ensure that the borrower has a proven track record with property type.
- Staying Power: Create loan documents that provide staying power in the real estate.
- Attractive Loan Basis: Originate loans where the basis is attractive when compared to historical real estate prices.
Typical Loans
- Term: 1-3 years; 5 year maximum
- Interest Rates: Varies depending on factors including property, LTV and market conditions.
- Size: $10MM to $100MM
Transparency & Communication
INVESTMENT MEMOS
Investment Committee Memos are made available to all investors upon execution of an NDA providing insight into the strategy, structure, risk management and the due diligence for each investment/credit instrument.
FUND ADMINISTRATION
3rd party fund administration via Cortland, which serves as the administrator for approximately $70B of investment assets.
VALUATION
Quarterly NAV valuation via Altus, which provides valuation services for 23 out of 24 open ended institutional real estate vehicles.
ONLINE ACCESS
Online access 24/7 to all account information.
QUARTERLY COMMUNICATION
Management will keep investors informed through quarterly conference calls and investor letters.
RESPONSIVE MANAGEMENT
Management will remain accessible to all investors.