fundamental partners logo

Fundamental Partners

A differentiated approach to familiar sectors and strategies

$4B+

Invested

200+

Deals Acquired

35+

States

What We Do

Fundamental Partners (“FP”) is an opportunistic private investment strategy focused on special situations in the municipal market and public purpose assets. By targeting cash-flowing, asset-based investments, the strategy seeks to provide investors with downside protection, long-term capital appreciation and current income. Our investments are often essential to the community and include affordable, workforce and transitional housing, renewable energy, senior care, and infrastructure (including community redevelopment).

Meet Our Team

FP’s investments take many forms, including distressed debt, controlling interests in real assets, direct lending and other bespoke specialty finance transactions. On an opportunistic basis, FP also seeks to acquire minority interests in municipal securities that are mispriced due to technical dislocations or idiosyncratic factors.

Key Features

Value Add
Approach

Consistent
Cash Flow

Downside
Protection

Differentiated
Investments

Improving, rehabilitating, and repositioning assets to drive operating performance and long-term value by enhancing property management, executing capital improvements, renegotiating contracts, restructuring debt, and simplifying the capital structure of an asset post acquisition.

Structuring investments and stabilizing cash flows at the asset-level to produce consistent current income, which is further supported by needs-based demand drivers.

Focusing on protection of capital and limitation of downside risk, with careful consideration given to asset/business fundamentals, project execution, investment structure, and the current and future economic environment.

Opportunistically sourcing differentiated investments that are often not available to the broader market and are geographically disparate, localized and often overlooked.

Strategies

Control-Oriented Debt/
Real Assets

Control-Oriented Debt/Real Assets
Acquisition of debt and/or equity of purpose-built and community assets, where we control and influence intrinsic value creation. We focus on improving performance through on-the-ground change and unlocking value by navigating municipal encumbrances and other structural complexities. Instruments include municipal bonds, notes, and equity interests.

Direct Lending &
Specialty Finance

Direct Lending & Specialty Finance
Origination of flexible financing solutions for high-quality borrowers and niche assets. Opportunities typically arise from structural complexity, illiquidity, or a void in available capital from traditional lenders. Instruments include senior or subordinated debt (tax-exempt or taxable), mezzanine debt and preferred equity.

Credit/
Opportunistic

Credit/Opportunistic
Acquisition of municipal securities arising from technical dislocations in the municipal market or idiosyncratic credits that are typically mispriced due to recurring structural inefficiencies. Instruments include minority positions in tax-exempt or taxable municipal bonds, total return swaps, credit default swaps and other synthetic investments.

Sectors*

Housing

Senior Care

Renewable Energy

Infrastructure

Affordable, Workforce & Transitional Housing

Acquisition or financing of stressed or underperforming housing assets that typically involve rent or income restrictions, low-income housing tax credits, non-profit ownership, and other municipal encumbrances. Our activities often relate to both operational improvements and legal, financial, and tax matters that may increase the value of the asset. One area of increasing activity is the development or retrofitting of existing properties into purpose-built homeless shelters, supporting an essential community need for transitional housing.

200+

Properties

45K+

Units

the facade of a condo building on a sunny day

Richmond Affordable Housing Portfolio: Acquisition and turnaround of six affordable housing properties in Richmond, Virginia that were encumbered by low-income housing tax credits, municipal bond financing, as well as local governmental regulatory agreements that had to be assumed.

a playground behind a condo building

Distressed Debt for Control Portfolio: Acquisition and restructuring of distressed subordinate notes collateralized by four affordable housing properties in Texas and California.

the facade of a transitional housing building

Transitional Housing Portfolio: Joint-venture to provide high-quality, low-cost homeless shelters in a large metropolitan area through the acquisition of operating shelters or redevelopment of existing properties into new transitional housing facilities.

Senior Care & Healthcare

Acquisition or financing of senior housing assets, including independent living, assisted living, memory care, and skilled nursing. Our activities also include continuing care retirement communities (“CCRC”), which are frequently financed with municipal bonds. These assets may benefit from tax abatements, tax-exempt or subsidized financing and non-profit ownership.

56+

Properties

18K+

Units

img

Chicago Senior Care Facility: Significant turnaround of a distressed CCRC, which was originally financed with municipal bonds and acquired in a Chapter 11 bankruptcy auction.

img

Distressed Skilled Nursing Portfolio: Acquisition of defaulted mezzanine loan secured by a portfolio of skilled nursing facilities, primarily located in Florida.

Renewable Energy

Programmatic approach to financing the development and construction of renewable energy projects, primarily solar. Projects are typically supported by government subsidies and other incentives and benefit from investment-grade offtake (primarily from public utilities).

$5B+

Loans
Originated

7GW+

Solar Capacity
Financed

 
a field of solar panels

Programmatic Solar Lending Platform: Filling a void in construction and development financing opportunities for solar projects that deliver clean, affordable energy. Our flexible financing solutions are focused on an underserved segment of the market, which is typically overlooked by traditional lenders.

a birds eye view of a group of solar panels

Small Balance Solar Lending: Providing turn-key construction and financing solutions for small scale commercial and industrial solar projects.

Infrastructure & Community Redevelopment

Seeking to invest in the development of critical infrastructure assets that serve a public purpose, ranging from utilities to toll roads, landfills and water treatment facilities, to stadiums and parking structures. Fundamental is also active in the financing of community redevelopment projects and other rehabilitation initiatives supported by local governments, including the redevelopment of previously underutilized or blighted parcels of land.

25+

Deals

15+

States

img

New York Community Redevelopment: Senior loan to finance the redevelopment of a brownfield site in Brooklyn, New York that was previously used as fuel storage space and is to be remediated and developed into multifamily housing.

img

Baton Rouge Retail Center: Opportunistically acquired and restructured private placement, tax-exempt municipal revenue bonds used to finance the horizontal infrastructure for a retail development in Louisiana.

img

Minor League Baseball Stadium: Acquisition of distressed municipal bonds secured by a Triple-A minor league baseball stadium and franchise in downtown Memphis.

img

Specialized Office Properties: Acquisition of single tenant office properties occupied by government contractors that provide essential services like cyber security, information technology and intelligence services to various government agencies.

*Sample transactions highlighted above were selected based on non-performance based criteria and are provided for illustrative purposes only to show Fundamental’s investment process with respect to such investments. There is no guarantee that any investment vehicle managed by Fundamental Advisors will find similar opportunities in the future.