Structured Financing

Our investment strategy functions like a mortgage, where our investors only provide the deposit while our lenders finance most of the opportunity. The key difference is that instead of cash, the deposit is secured by a Letter of Credit or Bitcoin, preserving liquidity while unlocking high-leverage access to institutional preferred lending terms.

Structured Financing

Structured finance, in the context of debt investing, refers to the strategic use of customized financial instruments to optimize capital deployment while mitigating risk. When utilizing letters of credit (LCs) in a second-lien or second-position structure, the LC serves as contingent collateral, backstopping the debt without requiring immediate capital outlay. This allows the primary asset acquired (such as real estate, infrastructure, or equipment) to serve as the first-position security, while the LC enhances the lender’s confidence and improves terms. By layering these protections, investors can unlock high-yield opportunities with limited downside exposure, creating a capital-efficient structure that balances safety with scalability.

In short, we use letters of credit (or BTC) as second-position collateral to unlock high-yield debt investments while preserving capital and minimizing risk.

Why use a letter of credit instead of cash?

Using a Letter of Credit (LC) instead of cash allows investors to retain liquidity while still securing their position in an investment. It enables capital to remain invested elsewhere or earning returns, while the LC serves as collateral—unlocking access to high-yield opportunities without tying up cash or triggering taxable events.

How do I get a letter of credit?

A Letter of Credit (LC) is typically obtained through a bank or financial institution by applying with sufficient collateral or creditworthiness. The process involves submitting documentation that outlines the purpose of the LC, the beneficiary, and the terms, after which the bank evaluates the applicant’s assets, credit profile, or deposits. Once approved, the bank issues the LC, guaranteeing payment on behalf of the investor, often secured by cash, securities, or other pledged assets.

What can I get with my LC in FlarePoint?

By leveraging your Letter of Credit, you can target internal rates of return (IRRs) between 50% and 100%. This accelerated yield profile enables the full release of your LC—often in under two years—if you opt to reinvest monthly distributions until your position is fully covered by returns, effectively eliminating your risk exposure. Additionally, any deferred yields are paid out in full upon the maturity of the SPV’s loan, allowing you to recapture both principal protection and profit on the back end.

Want to learn more?

Our General Partners aren’t just experts in structured finance—they’re passionate about helping investors like you unlock powerful, low-risk opportunities without giving up the assets you’ve worked hard to build. We’d love to connect one-on-one, show you exactly how it works, and tailor a strategy that lets your capital work smarter—without ever being drawn down.

Meet With Us

Structured Financing