Maximizing Returns with Discipline and Depth.
The Income Partners Funds are managed by Dili Capital Corp., the General Partner, headquartered in Toronto, Canada. Our goal is to generate attractive, risk-adjusted returns for our partners by conducting thorough, disciplined due diligence on all credit opportunities, whether at the corporate or project level. We focus on maximizing expected returns, not just potential returns, through a fundamentals-driven, bottom-up approach to investment selection that capitalizes on the depth and expertise of our investment team.
Our Investment Objectives
Income Partners Funds provide investors with the opportunity to consistently generate stable and secure returns on investment by participating in a diversified portfolio of sustainable project assets:
Investment Object
Preserve investors’ capital while generating an attractive return of 8-10% annually, distributed annually.
Our limited partners depend on us, so we strive to provide them with stable and secure cash distributions of between 8-10% of invested capital annually, paid annually.
Lastly, we strive for consistency and predictability in our returns, year-to-year.
We achieve these objectives by investing in an under-serviced niche market that requires short-term, flexible credit tailored to the project’s needs.
The partnership’s goal is to obtain favorable yields and maximize distributions through the efficient sourcing and management of our portfolio of credit investments.
We aim to achieve our investment objectives by investing directly in credit opportunities within project financing.
Investment Profile
Our investment strategy is to identify attractive investments in project financing where the project financing team has domain knowledge. Consistent with our approach, the criteria we use when we evaluate an investment typically include the following:
- Projects within our core sectors leverage our team’s established industry expertise across real estate, energy and power, oil and gas, transportation, education, industrial services, and technology services.
- Commercial businesses with significant revenue and earnings streams (typically up to $5 million of LTM EBITDA) that are underpinned by strong back-order backlogs
- Growth companies with high gross margins and strong cash generation but constrained in terms of resources (financial and/or human capital)
- Companies that have built top-tier positions within growth and emerging sub-market verticals and possess technology, IP or other attributes that create barriers to entry
- Talented management teams capable of executing business plans with aligned equity incentives and appetite to become part of a larger group
- Adopt a ‘buy-and-build’ platform strategy, packaging the niche offerings of respective businesses to present a cohesive market-facing service offering
- No fixed exit term (other than life of the fund)
Investment Criteria
Up to $10 million - possibly larger if a co-investment partner is involved
Shovel ready and fee generating projects
Real estate, energy and power, oil and gas, transportation, education, industrial services, and technology services.
Worldwide remit
$5 million
Required for all investments
No fixed term apart from life of the fund
We focus on debt investments that enhance credit for project financing and construction. Additionally, we invest in liquidation events and provide development capital, targeting opportunities that meet our growth and return thresholds for investors.
HOW WE OPERATE
Insight, Strategy, and Precision for Sustainable Return
DiliCapital team collectively has significant experience in both project investment and M&A advisory that spans over 50 years and multiple market cycles.
DiliCapital assists portfolio companies by advising senior management on broad strategic initiatives, facilitating new business relationships, supporting financial management and planning and providing guidance with respect to capital raising activities and acquisition strategies.
Before making an investment, DiliCapital considers potential exit alternatives. The bundled services approach together with geographical expansion is expected to transform the offering thereby making it more attractive to potential buyers resulting in multiple arbitrage on exit.
Successful lending involves an intense, hands-on process which is essential to avoid losses. While our approach is simple, its consistent execution over many years is more involved and is based on the following parameters:
Rigorous analysis, visiting every asset and interviewing every borrower is the foundation of our lending. Loan-to-value ratios of approximately 15% at the time of underwriting help create a margin of safety and with an average term of under two years.
DiliCapital has access to research analysts and industry contacts to bring independent insight into companies, market trends and industries when we conduct our diligence on prospective investment opportunities.
A mix of loans by size, borrower, geography and asset types smoothens returns by limiting exposure to any one area. On larger loans, we reduce our exposure by requesting for extra collateral or including a syndicate. We have extensive expertise in working through difficult situations when they do arise to produce successful outcomes.
Dili Income Partners Limited Partnership
The Dili Income Partners LP is a private debt co-investment fund managed by Dili Capital Corp., the General Partner, based in Toronto, Canada. Our project finance team offers portfolio advisory services, and the fund invests alongside other partners, focusing on three primary areas:
- Core sectors: real estate, energy and power, oil and gas, transportation, education, industrial services, and technology services.
- Shovel-ready projects only, with no development or exploration-stage investments.
- Enabling technologies that support these sectors.
The fund targets commitments totaling $50 million and is open exclusively to accredited investors, with a minimum investment of $1 million.