Buttonwood Asset Management
Buttonwood Asset Management is a wholly-owned subsidiary of Buttonwood Capital Management. Buttonwood Asset Management, LLC, a Delaware limited partnership, has launched Small Business Income Fund 1, LP. Buttonwood Asset Management will serve as the General Partner of the Fund and Buttonwood Capital Management will serve as the Manager of the General Partner.
The Small Business Income Fund 1 will invest in individual and pools of small business loans originated by Blue Bridge Financial, LLC, an affiliate of the GP. The objective of the Fund is to achieve superior risk-adjusted returns by comparison to other fixed income investment opportunities with a targeted yield of 12% on an unlevered basis.
The Fund will be composed of a select variety of small business loan products including: working capital, equipment finance, and inventory finance loans originated by Blue Bridge Financial. Blue Bridge has relationships with some of the nations leading vendors. The loan composition for the Fund will consist of a combination of attractive yield and strong credit quality and seeks to minimize the correlation with other asset classes.
Blue Bridge has originated over $100 million in comparable assets over the last 5 years. Approximately $85 million have been sold to a broad spectrum of well-known fund and depository investors. A vast majority of the loan are serviced directly by Blue Bridge Financial.
The Fund will provide investors the opportunity to invest in the same loan products as much the larger institutions. The Fund will benefit from the dynamic of these relationships with favorable purchase terms, servicing fees and the opportunity to enhance returns through the periodic sale of loans held by the Fund. The opportunity for loan sales is unique to the Fund given the expertise and relationship between the entities.