The Pelorus Fund: Another Strong Monthly Return To Begin 2023
On this week’s episode of Trade to Black podcast, we welcome Rob Sechrist, the Co-Founding President of Pelorus Equity Group, a provider of real estate debt financing solutions and specialty-use cannabis mortgage REIT Fund. Amid the well-rounded conversation on the U.S. cannabis market, Rob gives his take to another strong start to The Pelorus Fund in 2023, which new figures show produced an internal rate of return (IRR) of 0.98% in January. Same as it ever was.
On a fully annualized basis, January’s return gives The Pelorus Fund a preliminary IRR of 11.78%, or 22 basis points below the lower end of the Fund’s targeted range. But as Rob Sechrist explains, the Fund is adjusting for certain variables that, once enacted, could have a material effect on performance. Thus, he expects annualized return could trend toward the high end of the range by year’s end:
“Our target yield is 12-15% net IRR, and we believe that we’ll be well in that range. And, you know, this particular month and quarter, we’re still trying to balance off some lower-yielding fully stabilized transactions that we closed prior to having everything going to floating rate. But we have some strategies that we’ll roll out through this quarter and next that will offset that. And we have some new originations that will just add income to the fund as well. And so, we look to be closer to the 15 than the 12 (IRR).”
Giving us a sneak peak into the future, Rob explains that he is “looking forward to being able to announce to you” certain changes in lending structure that may be beneficial to The Pelorus Fund. For example, the changes could allow them to lend in ways that give them an advantage over their peers, among other things. Details may be forthcoming late this quarter, although more likely they will be announced in Q2. Stay tuned.
Click in the embedded link to view our latest interview with Co-Founding President of Pelorus Equity Group, Rob Sechrist, in his own words.
To view our previous Trade To Black podcast featuring former Canopy Growth CEO Bruce Linton, click here.