Private Debt Basics
What is hard money lending — and how does it generate returns?
A plain-language explainer of how short-term real estate loans work, who the borrowers are, and how lenders generate consistent yield from the process.
Educational resources for investors and advisors exploring the FirstBridge Private Bond Fund — and the broader world of asset-backed private debt.
A plain-language explainer of how short-term real estate loans work, who the borrowers are, and how lenders generate consistent yield from the process.
The math behind a preferred return — how it accrues, what "paid quarterly" means in practice, and why this structure differs from a dividend or interest payment.
Two of FirstBridge's core loan verticals — how they differ in borrower profile, property type, exit strategy, and risk characteristics.
Population growth, business relocation, and housing demand — the macro factors that underpin FirstBridge's geographic concentration in Texas.
Ten questions every financial advisor should ask before recommending a private debt fund to a client — covering structure, collateral, fees, liquidity, and reporting.
How Reg D exemptions work, what accredited investor status means, and why private placements operate differently from registered securities offerings.
A one-page summary of fund terms, loan strategy, and key metrics — formatted for sharing with your advisor. Enter your email and we'll send it directly to you.
| Term | Definition |
|---|---|
| Accredited Investor | An individual with $1M+ net worth (excl. primary residence) or $200K+ annual income ($300K joint) — the threshold to invest in private placements under Reg D. |
| Preferred Return | A minimum return threshold that LP investors receive before the GP participates in profits. FirstBridge's preferred return is 7% per annum, paid quarterly. |
| First-Lien Position | The most senior secured claim on a property. If the borrower defaults, first-lien holders are repaid before any other creditors from the proceeds of a property sale. |
| Loan-to-Value (LTV) | The ratio of the loan amount to the appraised value of the collateral property. A 65% LTV means the fund lent $65 for every $100 of property value. |
| Hard Money Loan | A short-term, asset-based loan secured by real property — typically used by real estate investors for acquisitions, renovations, or transitional financing. Underwriting focuses on the asset, not the borrower's credit score. |
| Reg D 506(b) | A federal securities exemption allowing companies to raise capital from accredited investors without SEC registration — but without general solicitation or advertising. |
| Limited Partner (LP) | An investor in the fund who contributes capital and receives economic returns, but does not participate in fund management. LP liability is limited to their capital contribution. |
| General Partner (GP) | The fund manager — FirstBridge Capital Management, LLC — who is responsible for all investment decisions, operations, and fiduciary obligations of the fund. |
| Carried Interest | The GP's share of fund profits above the preferred return hurdle — typically calculated as a percentage of the excess return generated for LPs. |
| Schedule K-1 | The annual tax document issued to LP investors showing their allocable share of fund income, losses, and deductions for federal income tax reporting purposes. |