Public Housing Authority Perspective
Public Housing Authorities and affordable housing developers seek to optimize capital deployment while maintaining mission alignment.
Current Structure Characteristics:
- Limited cash flow available for reinvestment
- Restrictive debt service coverage requirements
- Constrained capacity for portfolio expansion
SHIELD Structure Objectives:
- Enhanced cash flow generation for operational needs
- Target DSCR of 1.35 for refinancing eligibility
- Progressive increase in sponsor distributions over time
- Improved capacity for mission-driven development
"The enhanced cash flow structure is designed to enable expanded programming and accelerated development of additional affordable units, subject to successful implementation of the SHIELD framework."
Institutional Investor Perspective
Alternative investment funds with life settlement assets seek risk-adjusted returns while supporting essential infrastructure development.
Target Return Profile:
- Life settlement portfolio yields in the range of 8-12% annually
- Project participation providing additional return components
- Blended IRR target of approximately 12.1% ± subject to final terms
- Uncorrelated asset class diversification benefits
Investment Characteristics:
- Portfolio exposure to mortality-based income streams
- Positive social impact alignment with affordable housing objectives
- Defined exit strategies for capital recovery
- Professional asset management and oversight
"The structure is designed to provide attractive risk-adjusted returns while supporting essential infrastructure development, though actual returns may vary materially from projections."
Progressive Cash Flow Structure
The SHIELD framework contemplates progressive reallocation of available cash flow as the life settlement portfolio matures.
Initial Phase
Baseline sponsor distributions
Early period implementation
Development Phase
Increased sponsor allocation
Mid-term progression
Maturation Phase
Enhanced sponsor benefits
Later-stage optimization
Completion Phase
Maximum sponsor allocation
Final implementation stage
Disclaimer: All projections are estimates subject to final arrangement terms, market conditions, and actual portfolio performance. See Technical Library for detailed analysis and risk factors.