Autumn Capital Partners, Jericho Tax Lien Advisors and Eden Rock Capital Management have launched SPR Advisors to provide investors with access to US tax lien certificates.
SPR brings together expertise in real estate, institutional fund management and investment technology.
Investors are able to access SPR's strategies, which offer a short-dated portfolio with low correlation to major markets, directly and through fund products.
Tax lien certificates are secured debt investments in US property tax receivables that rank senior to a first mortgage and carry a typical loan-to-value ratio of less than five per cent. The certificates are sold to investors by individual municipalities, normally through a public auction.
Tax lien certificate investments allow for the development of large, diversified portfolios with predictable prepayment characteristics and without a requirement for leverage. Investments are selected following rigorous statistical analysis of prepayment profiles and fundamental collateral evaluation.
SPR believes that a portfolio of tax lien certificates, which should predominantly amortise within two years, presents an attractive risk-adjusted investment opportunity, particularly in the current interest rate environment.