In keeping with its commitment to support the needs of sponsors and GPs across the country Milestone Partners is pleased to announce the official launch of its loan credit enhancement program. The program is designed to help sponsors meet lender liquidity and balance sheet requirements.
William Wells, CEO of Milestone Partners, expressed his enthusiasm for the new program, “Given the continued spectre of rising inflation and the FED’s commitment to raising interest rates in response, we expect to see a dangerous combination of decreasing CRE values paired with increased debt service burdens. As lender’s tighten their belts, the already significant need for credit enhancement should increase.”
One critical component of the program is that Milestone does not have to be a Co-GP investor to act as guarantor. “This was a very important part of the way that we’ve structured this”, said Wells. “Many existing deals won’t have immediate capital needs, and we wanted to be in a position to lend our balance sheet to these deals as well.”
While today marks the formal launch of the program, Wells notes that Milestone has prior experience in this space. “We’ve slowly tested the waters over the last 18 months and streamlined the process behind the scenes. Our next credit enhancement deal certainly won’t be our first one.”
Download our one page flyer here: Milestone Credit Enhancement Program
