DLP’s Preferred Credit Fund: 10-11% Target Returns, Loan Tape, and Risk Questions

Episode #281

See what others have to say about the deal and join the conversation:

https://passivepockets.com/forums-listing/discussion/new-deal-dlp-capital-preferred-credit-fund/

Check out the DLP Preferred Credit Fund for yourself:

https://passivepockets.com/directory/deals/dlp-preferred-credit-fund/

This Episode

In this special LP Deal Review episode, Chris Lopez is joined by Adam Cranmer and Pascal Wagner to evaluate DLP Capital’s Preferred Credit Fund with Don Wenner, founder and CEO of DLP Capital. Don walks through the fund’s strategy, target return profile, underwriting process, borrower standards, and how DLP approaches development, construction, bridge, mezzanine, and preferred equity lending in today’s market.

The discussion digs into why DLP focuses on housing that is affordable for working families, how the firm thinks about lending in high-growth Sunbelt markets, and what separates its Preferred Credit Fund from a senior secured lending fund. Don also addresses several of the key diligence questions LPs should be asking right now, including geographic concentration risk in Florida and Texas, loan-to-value and loan-to-cost metrics, borrower concentration, third-party validation, fund administration, internal controls, and how rising interest rates could affect the fund’s risk profile.

After Don leaves the conversation, Chris, Adam, and Pascal break down the fund from an LP perspective. They discuss what they like about DLP’s track record, reporting, borrower quality, and institutional infrastructure, while also highlighting the risks they are watching closely, including mezzanine exposure, state concentration, self-dealing concerns, fees, macro uncertainty, and whether the return spread is attractive enough compared to risk-free alternatives. The episode closes with a broader conversation about how LPs should think about risk, liquidity, debt versus equity, and portfolio construction in an uncertain investing environment.

Key takeaways:

How DLP’s Preferred Credit Fund targets monthly income through private real estate credit

Why DLP focuses on housing affordability, experienced borrowers, and Sunbelt growth markets