THREE HILLS created the THREE HILLS – SECURED INCOME FUND, LLC (“SIF”) as its first entity to make investments. The strategy of the SIF is to make investments in alternative asset classes that have the following characteristics:
- Generate income while protecting principal.
- Secured by legal structure.
- Secured by overcollateralization.
- Classes are mixed within non-traditional assets to provide diversity of non-correlated returns.
The diagram below is an example of a SIF investment structure:
- Investors make funds available to the Fund
- Receivable is created between the Originator and Obligor
- Receivable is sold to the fund
- Fund receives payment from Obligor (often an insurance company)
- Fund provides return on investment to Investor