Impact Growth Capital Newsletter

Need-To-Know News

• Distressed Debt Fund Raises Initial $75M

• Banking Rule Revision Could Drive 10 YR Treasury Down

Market Snapshot

Data as of 2/26/2025

Impact Growth Fund

Join Us In Solving The Affordable Housing Crisis

The nationwide shortage of Affordable and Workforce Housing presents a rare opportunity for impact-driven investors to achieve both meaningful social change and strong financial returns. Our investment fund focuses on revitalizing undervalued properties, providing affordable housing solutions for hardworking families earning $30,000 to $80,000 annually—while delivering consistent, risk-adjusted income to our investors. By strategically acquiring and improving these properties, we unlock long-term appreciation and stable cash flow in one of the most resilient sectors of real estate.

With severe housing shortages driving an unprecedented supply-demand imbalance, well-positioned investors can capitalize on federal and local incentives designed to enhance returns. Our approach aligns profit with purpose, transforming communities while generating recession-resistant gains. Join us in addressing a critical societal challenge—We welcome the opportunity to discuss how this investment approach can fit into your investment goals.

Economics

Distressed Debt Fund Raises $75M

Fairview Partners Investment Management has successfully raised $75 million in the initial closing of its latest real estate debt vehicle, Fairview Investment Fund VIII. Aiming for a total capitalization of $250 million, the fund is set to concentrate on distressed real estate debt and small- to mid-balance loan opportunities across the United States.

Fund VIII continues Fairview's strategic focus on senior secured private real estate loans, targeting assets that present unique financing prospects amid current market dynamics. The firm identifies a broadening distress in the market, extending beyond the office sector to various property types, creating a fertile environment for investment.

"We are observing robust activity in the loan sale market and increased demand for our specialized real estate financing solutions," stated Nels Stemm, founding principal at Fairview. "Lenders are increasingly inclined to clean up their balance sheets, moving away from perpetual loan extensions."

This strategic move by Fairview underscores a proactive approach to capitalize on the evolving landscape of real estate finance, positioning the firm to address the complexities of distressed assets and contribute to market stabilization.

Market Watch

Banking Rule Could Drive 10 YR Treasury Down

The Trump administration is exploring regulatory adjustments to reduce 10-year Treasury yields, focusing on revising the Supplementary Leverage Ratio rule. This rule mandates that large U.S. banks hold additional capital against government debt and central bank deposits. Modifying the SLR could decrease the capital banks are required to hold for assets like Treasuries, potentially increasing demand and lowering yields.

Treasury Secretary Scott Bessent emphasized the administration's commitment to managing 10-year Treasury yields, a benchmark influencing global financial markets and consumer borrowing costs. Market participants, including the Bank Policy Institute, advocate for recalibrating the SLR to maintain market functionality amid rising government debt. Federal Reserve Chair Jerome Powell has expressed support for reducing the SLR to enhance liquidity, though some analysts caution that such changes might increase banking system vulnerabilities and future fiscal challenges.