NEW FUND COMING IN SEPTEMBER!!

 The AFD Strategic Equity Impact Fund is a structured private debt fund designed to provide fixed-income investors with reliable returns and secondary upside through equity buyout participation. Focused on bridging the subordinate capital gap for qualified borrowers, the Fund offers mezzanine financing paired with short-term equity stakes—allowing businesses to meet senior lender requirements without the need for personal guarantees or long-term equity dilution.

Unlike traditional mezzanine lenders or private equity firms, the Fund operates under a clearly defined 5-year term, offering investors 8% fixed annual interest and a share of equity exit fees generated through borrower repurchase events. Borrowers benefit from non-dilutive capital, strategic financial oversight, and a predictable path to full equity control. Through this hybrid lending model, the Fund supports scalable businesses, developers, and growth-focused entrepreneurs while providing debt investors with structured returns, downside protection, and mission-aligned impact.

• Hybrid Private Credit Structure
  Structured as a private debt fund with fixed-interest promissory notes and secondary upside through equity buyout participation.
• Purpose-Driven Capital Deployment
  Designed to support entrepreneurs, developers, and middle-market businesses in accessing strategic growth capital without personal guarantees or long-term equity dilution.
• More Than a Lender: A Strategic Capital Partner
  The Fund provides subordinated debt with temporary equity participation, positioning itself as a collaborative growth partner rather than a traditional lender.
• Short-Term Equity Participation with Defined Buyouts
  Holds a 5% minority equity stake in each borrower with structured repurchase terms after Year 4, including a 10% equity exit fee.
• Fixed, Predictable Income for Investors
  Investors receive a stable 8% annual interest rate, paid semi-annually, with principal repayment at maturity.
• Built-In Financial Oversight
  All funded businesses engage AFD CFO Services to ensure strong financial management, performance tracking, and risk mitigation throughout the investment period.
• Capital Preservation with Upside Participation
  Debt financing offers downside protection, while equity exit fees provide additional upside potential—without exposing investors to direct equity risk.
• Clear and Predictable Exit Strategy
  Borrowers are expected to repurchase the Fund’s equity stake after Year 4, creating a defined path to investor liquidity.
• Impact-Oriented Investment Model
  Capital is deployed into companies that drive job creation, expand access to capital, and deliver measurable economic impact in underserved markets.
• Diversified Lending Portfolio
  The Fund maintains a sector-agnostic approach to reduce concentration risk and enhance overall return potential for investors.