Impact Growth Capital Newsletter

For Accredited Investors & Family Offices:

We do not market deals to the public.

We Grant Access to our specific investment thesis Barbell Strategy execution via Work Force Housing and Vertical SaaaS though our:

Investor Council

We are currently reviewing applications for new members. If you are focused on capital preservation and asymmetric growth, you may apply for access here.

Current Fed Policy Snapshot

1

The Cost of Capital Has Reset

For years, near-zero rates compressed risk premiums and forced capital outward along the risk curve. Investors had no choice but to chase yield in progressively riskier assets.

Today, with policy rates sitting meaningfully higher, discipline has returned to pricing. Capital is no longer forced into risk it's choosing risk more selectively.

How This Changes Allocation:

• Public fixed income is competitive again, drawing capital that once chased yield in private markets

• Equity valuations face more scrutiny, especially growth assets reliant on distant cash flows

• Private market underwriting must clear a higher hurdle rate 

2

Liquidity Now Carries a Premium

When rates rise, liquidity tightens. This doesn't just affect borrowers it fundamentally changes portfolio construction decisions.

Institutional investors are increasingly prioritizing assets with predictable cash flows, strong balance sheets, lower refinancing risk, and durable demand drivers.

The Shift:

• Capital is gravitating toward resilience over expansion

• Cash flow visibility matters more than growth projections

• Conservative leverage structures outperform aggressive ones

3

Dispersion Is Returning to Markets

In low-rate environments, correlations tend to rise and asset performance becomes broad-based. "A rising tide lifts all boats."

In higher-rate regimes, dispersion increases. That means asset selection matters more than market exposure.

Clear Separation Between:

• Well-capitalized operators vs. over-leveraged ones

• Assets with structural demand vs. cyclical exposure

• Income-producing investments vs. speculative growth plays

This environment rewards fundamental analysis and operational execution, not passive beta.

4

Allocation Is Shifting From Momentum to Durability

Perhaps the most important change is psychological. The allocation mindset is moving away from chasing upside driven by cheap capital, toward preserving downside protection while capturing steady returns.

This Favors Strategies That Emphasize:

• Cash flow visibility over growth narratives

• Capital stack efficiency over maximum leverage

• Operational value creation over multiple expansion

• Long-term demand fundamentals over short-term momentum

In this rate environment, returns are increasingly generated through structure and discipline, not multiple expansion.

5

Real Assets Regain Strategic Relevance

Higher policy rates don't automatically mean weaker performance for real assets. In fact, certain segments benefit from the shift.

Why Real Assets Work in This Environment:

• Income stability becomes more valuable when volatility rises

• Inflation-linked revenue streams provide natural hedging

• Supply constraints support pricing power in essential sectors

The key distinction is leverage structure. Assets supported by conservative debt and durable tenant demand remain positioned to perform, even as financing conditions tighten.

Curious how this volatility is shaping real asset strategy?
Let’s walk through our current pipeline and capital stack approach.