Strategy Spotlight
KPC Tailor Ridge
Residential bridge & construction lending — accessed through KPC’s evergreen private markets platform.
KPC Tailor Ridge provides exposure to Tailor Ridge Real Estate Lending Fund I, LP (the “Underlying Fund”), managed by Tailor Ridge Capital Management, LLC. Investors in KPC Tailor Ridge do not invest directly in the Underlying Fund. Strategy, process, portfolio, and team information herein is sourced from the Underlying Manager and has not been independently verified by KPC. This material does not constitute investment advice, a recommendation, or an offer to buy or sell any security. See Important Disclosures and Endnotes.
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Section 1 · Overview
Strategy at a Glance
KPC Tailor Ridge provides eligible investors access to a specialist residential bridge and construction lending strategy that originates short-duration, first-lien mortgages secured by 1–8 unit residential properties in New England and select East Coast markets.
The strategy is unleveraged and self-liquidating, designed to deliver consistent monthly income with minimal volatility and zero drawdowns across all market environments since inception in June 2020.
Source: Underlying Sub-Fund Manager1Section 1 · Overview
Market Background: Residential Bridge Lending
The U.S. residential bridge market is dominated by individual lenders and community banks — with very limited institutional participation in the sub-$2M loan segment. The background below is general market context — not specific to the Underlying Manager or KPC Tailor Ridge.
What Is a Residential Bridge Loan?
A residential bridge loan is a short-duration (typically 6–18 month) first-lien mortgage used by experienced real estate operators to acquire, rehabilitate, or construct 1–8 unit residential properties. Loans typically carry fixed coupons of 11–13% plus origination points, with personal guarantees from the borrower.
Exits are typically a sale to an end-user homebuyer or a refinance into a conventional mortgage once the property is rehabilitated or stabilized. The lender’s primary protection is the equity cushion between the loan amount and the After Repaired Value (ARV) of the collateral.
Why the Opportunity Persists
- Entry-level housing supply in the Northeast is structurally constrained; new construction is largely uneconomical vs. rehabilitating existing stock
- Community and regional banks have tightened credit on non-conforming residential transactions post-2023, widening the gap for specialist lenders
- First-time homebuyer programs and Section 8 rent floors create durable demand for the collateral underpinning the portfolio
- Sub-$2M loan sizes are too small for Wall Street and too complex for banks, leaving the niche to specialist private lenders
The entry-level residential bridge market in Massachusetts alone exceeds $1B. Fragmented competition across individual lenders and community banks creates sustained pricing power for institutional-quality specialists.
Section 2 · Philosophy
Investment Philosophy
“Underwrite every loan as if we will own the collateral.”
The Underlying Manager’s core philosophy is capital preservation over yield maximization. Every loan is stress-tested to a worst-case scenario: if the fund were forced to take title, would the cash yield on the collateral — measured against Section 8 rent floors — protect principal? This rental-multiple lens has never been breached.
Source: Underlying Sub-Fund Manager1Capital Preservation First
100% first-lien mortgages with average 66.6% historical LTV. Personal guarantees required on all loans. Section 8 rental yields used as the principal-protection floor in every underwriting decision.
Unleveraged, Self-Liquidating Portfolio
The fund deliberately avoids structural leverage — a choice that distinguishes it from leveraged competitors. With average loan maturities of ~8.9 months, the portfolio naturally self-liquidates, preventing forced selling in downturns.
In-House Servicing as Risk Management
Loan servicing is conducted by the management company at its own expense. Early detection and swift response to delinquencies are among the most powerful risk mitigation tools available — and align manager incentives with investor outcomes.
Section 2 · Philosophy
Investment Approach
Loan Characteristics
- 100% first-lien mortgages on 1–8 unit residential properties
- Loan sizes $100K–$2M; average loan ~$705K; exposure per door ~$142K
- Mix: 53% Bridge + Rehab, 33.7% Bridge Only, 12.9% New Construction
Underwriting Discipline
- Max ARV LTV: 70% single-family / 75% multi-family; historical avg. 66.6%
- Proprietary borrower research using primary public records (not credit scores)
- Section 8 rental yield used as worst-case landlord-floor stress test
Structure & Alignment
- Wt. avg. coupon 12%; loans originated at 1–3 points to fund
- Personal guarantees required on all loans
- Loan servicing conducted in-house at management company's expense
Section 3 · Opportunity
The Investment Opportunity
Borrowers
Experienced residential real estate operators — typically small business builders and rehabbers — who require time-sensitive bridge capital that traditional banks and conventional mortgage lenders cannot provide within their required timelines or for non-conforming projects.
The Opportunity
Post-2023 regional bank retrenchment has further reduced credit availability in the sub-$2M residential bridge segment precisely when borrower demand remains structurally strong — supported by an acute Northeast housing shortage and policy-supported entry-level demand.
Favorable, Negotiated Terms
Because the niche is dominated by specialists rather than syndicated capital, the Underlying Manager negotiates coupons (11–13%), points (1–3%), and structural protections (personal guarantees, interest reserves) that aim to deliver an attractive risk-adjusted return profile relative to public credit alternatives.
The strategy seeks to earn a structural premium for providing scarce, time-sensitive senior secured residential capital — not for taking on duration, leverage, or directional housing-price risk.
Source: Underlying Sub-Fund Manager1Section 4 · Process
Investment Process
Origination & Screening
Loan request received; asset and borrower independently researched using primary public records; background checks run on all parties.
Commitment Letter
If the loan meets underwriting criteria, a commitment letter is issued; borrower must formally accept before proceeding to diligence.
Valuation & Title
Third-party appraisal of current FMV and ARV; title commitment, closing protection letter, E&O policy, and builders' risk insurance secured.
Closing
Handled by a law firm or title company via insured IOLTA accounts; documents drafted in-house (MA) or via Fortra Law; security interest recorded with registry of deeds.
Portfolio Monitoring & Servicing
Monthly invoices issued; 10-day follow-up on non-payment; default notice within 30–40 days; loan serviced entirely in-house by management company at its own expense.
Preferred resolution: payoff or note sale. If necessary: deed-in-lieu and property sale. Foreclosure auction is the last resort. In-house project experience enables completion of construction or rehab if needed to preserve collateral value.
Steps reflect the typical investment process; certain steps may be modified, omitted, or conducted concurrently depending on the loan.
Source: Underlying Sub-Fund Manager1Section 4 · Process
How a Bridge Loan Works
The two illustrative examples below are simplified, hypothetical representations of common transaction structures used in this strategy. They are intended to help advisors understand the mechanics — not to represent actual portfolio returns.
Bridge + Rehab Loan (Illustrative)
A repeat borrower acquires a distressed 3-family property in New Bedford, MA. The bridge loan finances purchase plus a phased construction reserve; exit is a sale to an end-user once the rehab is complete.
The equity cushion between loan and ARV — combined with the Section 8 rental floor — provides multiple layers of structural protection above any directional housing-price exposure.
Ground-Up Construction Loan (Illustrative)
An experienced builder funds construction of a single-family home on an in-fill lot (Form A). Funds are disbursed on a draw schedule tied to inspector-verified construction progress.
Phased draws, personal guarantees, and conservative ARV LTV constraints align borrower incentives with on-time, on-budget delivery — while protecting principal if the project stalls.
For illustrative purposes only. Hypothetical and not indicative of actual or future performance. All loans involve risk of loss; senior secured positioning does not guarantee return of principal. See Important Disclosures.
Source: Underlying Sub-Fund Manager1Section 5 · Portfolio
Current Portfolio Exposures
Snapshot of the underlying strategy’s portfolio composition as of April 30, 2026. Composition is dynamic and will change as loans are originated, extended, and repaid.4
Geography (% of Portfolio)
Loan Type (% of Portfolio)
Asset mix: ~64% Single Family, ~35% Multi-Family, ~1% Condo. All loans are first-lien residential mortgages secured by 1–8 unit properties.
Portfolio Statistics (as of April 30, 2026)
Avg. effective maturity ~8.9 months; portfolio is 100% first-lien residential mortgages.5
Portfolio Structure
- 100% first-lien mortgages — no second-lien or mezzanine exposure
- Unleveraged at the fund level — no warehouse, repo, or structural debt
- Self-liquidating with ~8.9 month average effective maturity
- Zero drawdowns since June 2020 inception across all market environments10
Section 5 · Portfolio
Portfolio Construction & Risk Mitigation
How the Portfolio Is Built
- Diversified across 459 active loans; average loan size ~$705K — no single loan dominates the portfolio
- Geographic concentration in stable Northeast markets (MA, RI) with select expansion into NC, FL, TX
- Loan mix balances pure bridge, bridge + rehab, and ground-up construction across single- and multi-family collateral
- Unleveraged — no warehouse or repo facilities; the fund is never a forced seller in dislocations
Risk Mitigation in Practice
- 100% first-lien position; average 66.6% historical LTV provides ~25–30% equity cushion against ARV
- Section 8 rental-yield stress test on every loan — collateral evaluated as a worst-case rental hold
- Real-time tracking of Petitions to Foreclose and Lis Pendens filings provides months of forward visibility on distress cycles
- In-house servicing enables 10-day follow-up on non-payment and 30–40 day default notices — faster than industry-standard third-party servicers
What this means for advisors: the strategy is designed to deliver consistent monthly income with low correlation to public equity and fixed income markets. Detailed historical return, volatility, and risk-adjusted metrics for KPC Tailor Ridge are provided in Section 6 of this presentation and in the KPC Tailor Ridge Performance summary and Fund Terms Summary.
Section 6 · Performance
Performance Snapshot
Net performance for KPC Tailor Ridge, as of the period shown below. Figures reflect Class B Interests of the Underlying Fund, net of all fees and expenses, and update automatically as the underlying dataset is refreshed.2
KPC Tailor Ridge has delivered positive monthly returns and zero drawdowns since the strategy’s June 2020 inception — through COVID, the 2022 rate-hike cycle, and the 2023 regional banking stress — consistent with the capital-preservation philosophy described in Section 2.
Periods of 12 months or less are cumulative; longer periods are annualized. Net of all fees and expenses. Reflects Class B Interests of the Underlying Fund. 2026 figures are unaudited.
Synced — As of May 2026Section 6 · Performance
60/40 Portfolio Impact Analysis
Illustrative effect of adding a 20% allocation to KPC Tailor Ridge to a traditional 60% equity / 40% bond portfolio (reducing equity to 48% and bonds to 32%), since inception (Jun 2020 – May 2026).
Adding KPC Tailor Ridge to a traditional 60/40 portfolio has historically enhanced portfolio yield while reducing overall volatility and drawdowns, given the strategy’s near-zero correlation to public markets.
Synced — As of May 2026Hypothetical illustration only. Assumes 20% allocation funded equally from equities and fixed income, with periodic rebalancing. Uses historical average index returns blended with KPC-level net returns. Past performance is not indicative of future results.
Section 7 · Team
Management Team & Governance
The Underlying Manager is led by a senior team with deep experience in residential real estate finance, underwriting, and in-house loan servicing. Consistent with KPC’s anonymization policy for sub-fund manager personnel, individuals are described by role and tenure rather than by name.7
Managing Principal (Founder)
Overall strategy oversight, origination, and underwriting leadership; 20+ years originating residential bridge loans across New England.
Head of Underwriting
Sets underwriting standards, manages the proprietary borrower-research process, and chairs the credit committee.
Head of Servicing
Leads in-house loan servicing, collections, and workout processes; manages 10-day non-payment follow-up and default-notice workflow.
Chief Financial Officer
Fund accounting, treasury, and investor reporting; prior CFO experience in private credit and real estate funds.
Firm Infrastructure
- 12 total team members: Managing Principal, Senior Analyst, 2 Analysts, CFO, Assistant Fund Controller, 3 Staff Accountants, Head of Servicing, plus underwriting and legal staff
- In-house legal document drafting (Massachusetts) supplemented by Fortra Law and Hutner Klarish for out-of-state closings
- Real-time foreclosure-filing surveillance system providing forward visibility into distress cycles
Governance & Oversight
- Fund Administrator: NAV Consulting · Auditor: CohnReznick LLP (financials audited through 12/31/2024)
- Compliance: IQ-EQ / AltPilot · Outside Counsel: Fortra Law / Hutner Klarish
- Monthly NAV statements; K-1 reporting with REIT QBI deduction eligibility; no UBTI
Section 8 · Portfolio Fit
Considering a Tailor Ridge Allocation
Residential bridge and construction lending is generally considered alongside, rather than in place of, traditional equity and fixed income allocations. Advisors evaluating a potential allocation to KPC Tailor Ridge often consider the following questions.
What role might this strategy play?
Strategies of this type are often used by advisors seeking fixed-coupon income with low correlation to public equities and bonds, with return drivers rooted in privately negotiated first-lien loan terms rather than security selection or market timing. The 60/40 portfolio impact analysis (Section 6) illustrates this diversification effect historically.
What should clients understand about liquidity?
KPC Tailor Ridge is an evergreen open-ended sub-REIT with monthly subscriptions, quarterly redemptions on 95-day notice, and a 12-month lock-up, as set out in the KPC Fund Terms Summary.9 An investor-level gate of up to 25% may apply in market dislocations. This strategy is generally appropriate for capital that can accommodate reduced liquidity relative to public market instruments.
Where can advisors find further performance detail?
Full net historical performance, monthly returns, and additional risk statistics for KPC Tailor Ridge are provided in the companion Performance summary, updated monthly and reflecting both KPC platform-level fees and the Underlying Manager’s 1.35% management fee and 20% incentive allocation.2
Section 9 · Disclosures
Important Disclosures
This presentation has been prepared by Kelly Park Investment LLC (“KPI”), an SEC-registered investment adviser doing business as KPC Private Funds (“KPC”), for the exclusive use of financial professionals. It is provided for informational and educational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security or interest in any fund, including KPC Tailor Ridge (the “Fund”). Any offer of interests in the Fund may be made only pursuant to the Fund’s confidential offering documents, including the private placement memorandum, subscription documents, and limited partnership agreement, which contain important information regarding investment objectives, risks, fees, expenses, and tax considerations and which qualify in their entirety the information set forth herein.
The Fund invests, directly or indirectly, in a strategy managed by an underlying sub-fund manager (the “Underlying Manager”) that is not named in this presentation. Investors in the Fund acquire an interest in the Fund itself and do not invest directly in, and are not investors of, the Underlying Manager’s fund. References to strategy, process, portfolio, philosophy, team, and firm characteristics in this presentation describe the Underlying Manager and its fund and are based on information provided by, or derived from materials prepared by, the Underlying Manager. Except where specifically identified as KPC Fund performance or Fund terms, information regarding the investment strategy, portfolio construction, investment process, market commentary, and personnel has been obtained from the Underlying Manager and has not been independently verified by KPC. Such information is subject to change without notice.
Registration as an investment adviser with the SEC does not imply any particular level of skill or training and does not constitute an endorsement by the SEC. This presentation should be read in conjunction with the Fund’s offering documents, the KPC Tailor Ridge Terms Summary, and the KPC Tailor Ridge Performance summary. Eligibility designations (e.g., Accredited Investor, Qualified Client, Qualified Purchaser) reflect applicable regulatory definitions and are determined based on an investor’s individual circumstances.
Investments in the Fund involve substantial risk, including the possible loss of all invested capital. Interests in the Fund are illiquid and subject to subscription, redemption, gate, lock-up, and other transfer restrictions described in the offering documents. Any illustrative or hypothetical examples included in this presentation, including any 60/40 portfolio impact analysis, are for discussion purposes only, do not reflect actual transactions or returns of the Fund or the Underlying Manager unless otherwise stated, and are not indicative of future results.
Past performance is not indicative of future results. Net performance information for the Fund reflects the deduction of all Fund-level and KPC platform-level fees and expenses, including management fees and incentive allocations, and is current as of the date noted on the relevant slide. Index and benchmark comparisons are for illustrative purposes only; an investor cannot invest directly in an index. Forward-looking statements, including words such as “may,” “will,” “seeks,” “target,” or “expect,” involve risks and uncertainties, and actual results may differ materially.
Portfolio composition, sector, geographic, and other exposures presented herein reflect a point in time as indicated and are subject to change without notice; they do not represent a current or future allocation and should not be relied upon as such. This presentation is confidential and intended solely for the recipient. It may not be reproduced, distributed, or shared, in whole or in part, without the prior written consent of KPC Private Funds. Nothing herein constitutes legal, tax, accounting, or investment advice; prospective investors should consult their own advisors.
Section 10 · Endnotes
Endnotes & Sources
1. KPC Tailor Ridge provides exposure to Tailor Ridge Real Estate Lending Fund I, LP, managed by Tailor Ridge Capital Management, LLC. Investors in KPC Tailor Ridge do not invest directly in the Underlying Fund. Strategy, process, portfolio, and team information herein is sourced from the Underlying Manager and has not been independently verified by KPC.
2. Performance figures reflect Class B Interests of the Underlying Fund, net of all underlying management fees, incentive fees, and fund-level expenses. KPC-level net returns additionally reflect the KPC platform fee (0.25% Founders / 1.00% Standard) and will reduce investor returns further. KPC charges no additional performance fee.
3. Past performance is not indicative of future results. There can be no assurance that the strategy will achieve similar results going forward. All investments involve risk, including the possible loss of principal.
4. Portfolio statistics as of April 30, 2026. Source: Underlying Sub-Fund Manager. Loan count, AUM, geographic and loan-type allocations are subject to change as loans are originated, extended, and repaid.
5. Weighted average LTV: 66.6% historical average across the life of the fund, calculated as loan amount divided by appraised After Repaired Value (ARV) at close. Max ARV LTV is 70% for single-family and 75% for multi-family collateral.
6. Benchmark comparison data sourced from third-party indices: S&P 500 Total Return Index; Bloomberg US Aggregate Bond Index. Calendar-year and trailing-period total returns.
7. Team descriptions reflect roles and approximate tenure as of the date of this presentation. Individual names are omitted in accordance with KPC compliance guidelines and are available to qualified investors upon request. All team information is sourced from the Underlying Manager.
8. Portfolio impact / 60-40 analysis is hypothetical and for illustrative purposes only. It does not represent actual investor results. Hypothetical performance has inherent limitations and does not reflect the impact of material market and economic conditions on actual portfolios.
9. Fund terms are summary only and are governed by the KPC Tailor Ridge offering documents, which are subject to change. Investors should review the offering documents in their entirety before investing. Liquidity terms reflect the KPC vehicle; the Underlying Fund may impose additional liquidity limitations.
10. Zero drawdowns since the Fund's June 2020 inception through May 2026, as reported by the Underlying Manager and calculated by NAV Consulting. Drawdown is defined as any peak-to-trough decline in monthly NAV. Financial statements audited through 12/31/2024 by CohnReznick LLP.
11. Active loan count and AUM reflect the Underlying Fund's portfolio as of April 30, 2026. Cumulative loans originated since June 2020 inception exceed 1,219.
12. This material is for financial professional use only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Investment in KPC Tailor Ridge involves significant risks, including illiquidity, concentration in residential real estate, regional concentration in Northeast markets, and borrower credit risk. Prospective investors should consult their own financial, tax, and legal advisors.
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KPC Tailor Ridge · Strategy Spotlight
KPC Private Funds
For Financial Professional Use Only — Not for Distribution to the Public