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AFD
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Why Our Fund is Beneficial to Investors!


Fixed-Income Stability with Structured Upside

  • Capitalized Through Private Debt Financing
    The Fund raises capital from accredited investors through structured debt offerings — not equity dilution.
     
  • Predictable Income with Promissory Notes
    Investors receive promissory notes earning 8% fixed annual interest, paid semi-annually, with full principal repayment at maturity.
     
  • Reliable Returns Backed by Mezzanine Lending
    Capital is deployed into carefully underwritten mezzanine loans to qualified businesses, generating consistent cash flow.
     

🔹 Enhanced Returns Through Equity Participation

  • Private Equity-Style Upside
    In addition to interest income, investors participate in a performance-based bonus:
    AFD Strategic Equity Impact Fund shares 10% of realized equity buyout fees with investors.
     
  • Deferred Equity Repurchase Structure
    Equity buyouts by borrowers typically occur after Year 4, creating a secondary return stream and improving yield — without requiring investors to hold actual equity.
     

🔹 Capital Security and Transparency

  • Defined Exit Timeline
    All loans and equity buyouts are structured to conclude within the 5-year term, offering predictable liquidity and capital return.
     
  • Diversified Portfolio Strategy
    The Fund invests across multiple industries and businesses to reduce concentration risk and maximize return potential.
     

🔹 Built-in Risk Management Oversight

  • AFD CFO Services Integration
    All funded businesses receive mandatory CFO oversight, including:
     
    • Monthly financial statement reviews
       
    • Debt service and covenant compliance
       
    • Strategic planning and exit monitoring
       
    • Quarterly performance evaluations
       
  • This unique structure strengthens borrower accountability and enhances investor protection.
     

🔹 Purpose-Driven, Impact-Focused Capital

  • Your investment supports businesses that:
     
    • Create jobs
       
    • Expand access to capital
       
    • Deliver measurable economic and social impact in underserved communities
       


 

 

INVESTOR PORTAL

Top 5 AFD Key Differentiators Compared to Other Firms:

1. No Personal Guarantees Required

Unlike most mezzanine lenders, AFD Strategic Equity Impact Fund does not require personal or business guarantees from borrowers. Investor capital is protected through a combination of financial insurance guarantees and structured equity participation, offering downside protection without relying on collateral or personal assets. 

2. Fixed Income with Private Equity-Style Upside

Investors receive a fixed 8 percent annual interest rate with semi-annual payments. In addition, AFD shares 10 percent of its realized equity buyout fee with investors, creating a secondary return stream. This hybrid model delivers both stable income and long-term upside without equity dilution or ownership risk.

3. Defined Exit Strategy

Unlike traditional private equity firms that rely on uncertain exit events, AFD operates with a pre-structured equity repurchase model. Borrowers are expected to repurchase the Fund’s minority equity stake after year four, providing greater visibility into liquidity timing and return realization. 

4. CFO Oversight for Risk Management

 Every borrower is required to engage AFD CFO Services, which delivers monthly financial reviews, covenant monitoring, performance tracking, and strategic advisory. This built-in oversight strengthens borrower discipline and enhances investor protection by ensuring capital is deployed and managed responsibly. 

5. Impact-Driven, Diversified Lending Strategy

The AFD Strategic Equity Impact Fund invests in high-growth businesses that create jobs, expand access to capital, and drive sustainable local economic development. The Fund takes a diversified, industry-agnostic approach to reduce risk and position investors to benefit from a broad range of strategic lending opportunities. 


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