We are pleased to share the results of Goodman Capital Liquid Credit Strategy Fund II (“LCSF II”) for the quarter ended March 31, 2026, the Fund’s first full quarter following its launch in December 2025.
LCSF II is an income-oriented investment vehicle focused on originating short-term, senior-secured real estate bridge loans collateralized primarily by Class A housing in core U.S. markets. The strategy is designed to deliver attractive risk-adjusted returns while emphasizing capital preservation, disciplined underwriting, tax efficiency, and low correlation to the public equity markets. This quarter delivered on that mandate.
From inception through March 31, 2026, LCSF II generated a net IRR of 12.3% while maintaining a conservative 44% weighted-average LTV on a fully funded basis across a diversified portfolio of 22 senior-secured loans with a maximum unpaid principal balance of approximately $172.5 million and a 1.6-year average loan term. Monthly distributions ran at an annualized dividend yield of 9.0% for the quarter, with the balance of return reflecting NAV accretion. As of March 31, every loan in the portfolio was performing, with no delinquencies or defaults.
This performance reflects our firm’s investment philosophy of investing in downside-protected opportunities in the real estate middle market, where our direct sourcing relationships, integrated credit platform and tailored financing approach allow us to structure compelling risk-adjusted returns. The current dislocation in credit markets — a structural wave of maturing commercial real estate loans meeting a higher-for-longer rate environment — continues to produce senior-secured lending opportunities with best-in-class sponsors and strong collateral coverage.
Q1 2026 INVESTMENT PERFORMANCE
Representative Investments
Since inception, LCSF II has deployed capital into a diversified portfolio of 22 senior mortgage loans secured by Class A housing with a maximum unpaid principal balance of approximately $172.5 million — underwritten at a conservative 44% weighted-average LTV. As of 3/31/26, 100% of the portfolio was performing, with no delinquencies or defaults. Below are select loan originations closed during the quarter:
Loan #1: NYC Condo
$75.0M Senior Loan | 20 – 25% LTV
Newly built 26-unit residential condo development in prime NoMad, NY
Attractive $770/sq ft loan basis with units in contract at $3,000+/sq ft
Enhanced credit support with $260M+ of subordinate capital invested to date
Loan #2: NJ Mixed-Use
$20.0M Senior Loan | 40 – 45% LTV
50-unit mixed-use rental development in downtown Jersey City, NJ
Attractive attachment point with last-dollar exposure of 48% loan-to-cost
Enhanced credit support with $14.5M of subordinate 3rd party mezz financing
Loan #3: NJ Townhouse Condo
$14.5M Senior Loan | 45 – 50% LTV
Newly built 14-unit townhouse condo development in Long Branch, NJ
Attractive $324/sq ft loan basis with units in contract at $650+/sq ft
Structured cash sweep to repay senior lender from unit sales prior to equity return
FUND OVERVIEW
LCSF II Investment Highlights
LCSF II is an evergreen real estate credit fund focused on generating consistent monthly income through a diversified portfolio of short-duration, senior-secured low-LTV mortgages backed by Class A housing in core U.S. markets. The strategy emphasizes first-lien lending at or below 60% LTV, prioritizing consistent income generation, capital preservation and tax efficiency.
To date, Goodman Capital has originated over $1.25 billion of senior-secured loans with zero realized principal losses, reflecting our disciplined approach across market cycles.
- Targeting 10–11%+ net annual returns through first-lien lending on Class A housing
- Senior-secured lending at low leverage (≤60% LTV), with the current portfolio ~44% LTV
- Quarterly liquidity following a 12-month lock-up period, subject to a 5% NAV cap
- Tax-efficient REIT structure with a 20% QBI deduction (Sec. 199A), dividend reinvestment program (DRIP) and discounted Roth conversion benefits
- Available on major custodial platforms including Schwab, Fidelity, Wells Fargo and others
- Allocation minimums available upon request — contact us to discuss allocation size and applicable terms
