Rama Capital Partners Announces its 5th Consecutive Year of Double Digit Returns

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The Rama Fund finishes 2013 up 10.07%, net of fees

2013 will always be remembered as the year we established our identity as a bankable lending platform.

Rama Capital Partners, LLC (“RCP”) is pleased to announce that The Rama Fund, LLC (the “Fund”) delivered 10.07%, net of fees, to its investors in 2013. The Fund has generated positive net returns for 63 consecutive months since its inception in September 2008. Through December 31, 2013, the Fund’s average annualized net yield is 10.15%, its cumulative net return is 66.11%, and its performance results have been audited every year.

Over the year, the Fund increased the dollar volume of its loan fundings by 65.9% and grew the number of its investor accounts by 35.2%. As of December 31, 2013, the Fund’s weighted average loan-to-value ratio was 48.3% and every loan was collateralized by a first lien position on the underlying real estate.

“2013 marked an inflection point for our lending platform for two reasons: we expanded our secondary market activities into the institutional space and we introduced a new product offering,” comments Alim Kassam, Chief Executive Officer of RCP. Kassam adds that “2013 will always be remembered as the year we established our identity as a bankable lending platform. While we have had bona fide warehouse facilities over the past several years, in 2013 we were able to execute several trades with national, FDIC insured depositories who purchased our paper to hold on their own balance sheets.”

“During the year we introduced a fully amortized, hybrid ARM sub-prime loan program to compliment the hard money/bridge loan product we have offered since our inception,” says Brian O’Shaughnessy, President of RCP. Internally labeled as the “sane sub-prime,” this new product has more stringent underwriting criteria, higher credit qualifications, a longer term, and a lower coupon, than traditional “hard money.” “We are always looking for new ways to further benefit our borrowers and this new product offering was specifically structured to address a huge, underserved void we identified in the marketplace,” adds O’Shaughnessy.

The Rama Fund has been a reliable source of liquidity for borrowers seeking alternative mortgage financing and has invested in excess of 800 loans since its inception.

Rama Capital offers the benefits of trust deed/mortgage investing without the barriers to entry traditionally inherent in this asset class, including real estate experience and personal time commitment. The Fund combines low volatility, preservation of capital, investment transparency, and diversification, while offering attractive returns traditionally associated with higher risk investments. Rama Capital offers investors the ability to invest in trust deeds through its mortgage fund or through direct investments via its Separately Managed Account (“SMA”) program.

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Alim Kassam
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