Our approach is powered by a proprietary methodology that sifts through billions of data points to help us identify opportunities and protect against risk very efficiently, and very quickly.
Leveraging billions of data points and deep credit experience to achieve winning outcomes
By blending a proprietary, data-driven methodology with deep real estate credit experience, we have created a highly differentiated business model that delivers superior, risk-protected loan programs to the middle market. Our highly-sought after loans command an appropriate premium in interest rate spreads by delivering compelling, differentiated value to borrowers while providing reliable, predictable and repeatable returns to our investors across all economic cycles.
Data Makes Us Different
Unique Market Focus
Our focus on the commercial real estate middle market is driven by significant demand and opportunity in the fragmented and inefficient space, where there is also a high barrier to entry for potential competitors. We service best-in-class sponsors, providing sophisticated and bespoke financing solutions. Over 50% of them are repeat borrowers.
TerraCotta’s opportunities to provide credit are sourced directly from sponsors, our network of established broker relationships and referrals from community and regional banks. Dr. Zhang co-founded the Special Assets Management Association (SAMA), the only trade association in the US dedicated to fostering best practices in the field of special assets and credit risk management. We have deep relationships across the banking industry that supplement our loan pipelines.
Experience Across the Full Market Cycle
TerraCotta is among a handful of real estate credit firms that have the experience of having lived through the great recession and come out unscathed. During the previous recession, we purchased over 80 distressed loans from banks and worked each and every one out successfully. The insights we gleaned during this period are now fully baked into our methodology and investment processes.