The SOLRX Fund employs two strategies to generate consistent income and non-correlated total returns.
The Finite Solar Finance Fund (SOLRX) employs two strategies that complement each other in an effort to achieve the Fund’s investment objective.
Finite uses its network of solar loan originators as a force multiplier to identify, review, and source appropriate opportunities.
The Fund’s primary strategy is investing in private solar credit, including residential, commercial and industrial. This marketplace is very fragmented and therefore inefficient. Finite uses its network of solar loan originators as a force multiplier to identify, review, and source appropriate opportunities (the top of the funnel) allowing our team to focus on those investments and surpass the initial hurdles.
Finite employs custom technology, allowing us to purchase portfolios comprised of dozens or even hundreds of residential loans.
This technology allows us to purchase individual loans ranging from $5,000 to $100,000, ensuring each loan meets or exceeds our investment criteria. While larger in size than any single residential loan, commercial and industrial loans, which can range from hundreds of thousands to millions of dollars, are subjected to intense scrutiny to ensure the viability of the project, the incentives of the borrower to make timely loan repayments, and vetting the collateral backing of secured loans.
Private assets balanced by public securities.
Private assets balanced by public securities.
Complementing the Fund’s focus on private assets is our investment in publicly traded securities. This sleeve of the investment strategy brings two primary benefits; the first being liquidity, and the second, the opportunity for price appreciation of the security.
While the private assets do create liquidity through ongoing principal and interest payments, public securities are tradeable, meaning we can sell positions and reinvest in more attractive assets (as fixed income investments appreciate in price, they become less attractive from a total return standpoint going forward – having already generated return – so we’re constantly looking for opportunities to optimize the portfolio).
We look to diversify the portfolio across the spectrum of solar borrowers including manufacturers, designers and installers, infrastructure developers and investors, and tech companies developing solar solutions for the future.
