INVESTMENT STRATEGIES
Proven Investments In Small Business
Solomon Hess Capital Management has been active in the Small Business Administration and Community Development secondary markets for over 15 years. Our private funds have focused on investing in these assets on behalf of institutional and accredited individual investors. We have the ability to tailor a Separately Managed Account or Single Investor fund for institutional or accredited individual investors interested in these assets.
SBA Loan Fund
The SBA Loan Fund is CRA-eligible open-ended Community Development investment fund for banks. As of September 30, 2019, the Fund had $607 million in gross assets and 123 funded investors which include small community banks, super-regional banks, diversified financial institutions and non-traditional lenders. The Fund also has investors looking to benefit from the risk-adjusted returns of investing in a diversified pool of government guaranteed securities.
New Markets Tax Credit (NMTC) Investments
The SBA Loan Fund received a $50 million New Markets Tax Credit allocation from the US Department of the Treasury in 2009. The Fund partnered with a large diversified financial company to deploy the credits via 4 closed-end funds.
Absolute Return Investments
Solomon Hess established and raised $28.5 million in equity for multiple investment funds for accredited individual investors. All of these funds utilized an absolute return strategy and leveraged the firm’s expertise in acquiring U.S. government securities. The funds invested in a variety of assets including: Agency Commercial Mortgage Backed Securities, SBA 7(a) program loans, USDA program loans and interest-only strips created from these same assets.
