Lending to real businesses and property owners for steady, contractual income.
Target net total return, with an 8–11% target net cash yield
Preferred equity, mezzanine debt and bridge loans against commercial real estate, in $1M to $5M positions per project. Investments sit ahead of common equity, generally with takeover rights on default. Open-ended with quarterly NAV.
Preferred return, tiered by commitment size
Short-term receivable purchases from US small businesses, structured as true sales rather than loans. Businesses repay daily or weekly from revenue, which recycles capital quickly. Sourced through Direct Funding Now, which has brokered over $900M across ten years.
Total annual return, by series and term
Senior secured term notes backed by real property and business assets, across real estate lending, business lending and selective real estate equity. Every note pays 6.5% in monthly distributions, with the remainder paid as deferred interest at maturity.
All three lend rather than own. What differs is what secures the loan, how often you get paid, and how long your capital is committed.
| Private Credit Fund | Kudo Income Fund | Income Fund II | |
|---|---|---|---|
| What it lends against | Commercial real estate | Small business receivables | Real property and business assets |
| Instrument | Preferred equity, mezzanine debt, bridge loans | Merchant cash advances, true sales of receivables | Senior secured term notes |
| Target net annual return | 10–12% | 11–13% | 10.5–14% |
| Distributions | Quarterly preferred and profit share | Monthly | Monthly, plus deferred interest at maturity |
| Minimum | $50,000 | $50,000 | $50,000 |
| Commitment | 2-year lockup, then quarterly redemption on 90 days' notice | 1-year lockup, 90 days to recall capital | 1 or 2-year note term, auto-renewing |
| Structure | Open-ended fund, quarterly NAV | Fund with tiered preferred returns | Term notes in three series |
| Best for | Ongoing income with profit-share upside | Simple monthly income, shortest commitment | Highest headline rate |
Target returns, not guarantees. Capital is subject to loss. See each fund's offering documents for full terms and risk factors.
Every equity deal has someone who gets paid before the owners do. Private credit is being that someone. You lend against real collateral, collect a contracted rate, and sit ahead of the people taking the equity risk.
10–14% across the three funds, depending on which strategy and commitment size you choose.
Monthly or quarterly depending on the fund. Income starts within the first few months rather than years in.
$50,000 across all three funds, with better rates at higher commitment tiers.
One to two year options.
Secured against commercial real estate, business receivables, or tangible assets, depending on the fund.
Ahead of equity. Preferred and senior secured positions are paid before common equity holders.
In any deal there's a stack. Lenders sit at the bottom and get paid first. Equity sits at the top, takes the upside, and absorbs the losses before anyone below them feels anything. Private credit is choosing the bottom of that stack on purpose.
The owners. Unlimited upside if things go well, and the first to lose if they don't. This is where most private investments sit.
A contracted rate paid before equity sees anything, secured against the asset, often with takeover rights on default.
The institution. Lowest rate in the stack because they carry the least risk and hold the first claim on collateral.
Returns come from an agreed rate rather than an exit multiple. You don't need a buyer to show up at the right price.
Cash arrives monthly or quarterly while you hold. Nothing depends on a sale years from now.
One and two-year note terms, or a two-year lockup. Compare that to the five to ten years an equity deal asks for.
US private credit has grown past $1.7 trillion as banks retreated from middle-market lending and institutions chased yield.
Pick a fund, enter an amount, and see what it produces. Rates step up automatically at the commitment tiers.
Below the $50,000 minimum. Figures shown for reference.
Target returns, not guarantees. Distributions depend on the performance of the underlying loan portfolio and available cash, and each fund may defer or reduce payments. Capital is subject to loss. See each fund's offering documents for full terms and risk factors.
You can allocate across more than one of these funds. The calculator shows one at a time to keep it simple, so bring the split you're considering to the call and Dylan will model it with you.
The protections differ by fund, but the principle is the same across all three: get paid before equity, and secure the position against something real.
Commercial real estate in the Private Credit Fund, real property and business assets in Income Fund II, and purchased receivables from businesses with verifiable high-volume cash flow in Kudo.
Preferred and senior secured positions are paid before common equity holders, generally with takeover rights in the event of default.
Capital is spread across many positions rather than concentrated. Kudo caps individual funding sizes so no single deal can dominate.
Kudo's portfolio is designed to withstand more than 25% defaults before investor returns are affected, against an origination partner history of 4 to 6% annual defaults.
Income Fund II lends against real property at conservative LTVs with a focus on first-lien positions.
Receivables repay daily or weekly rather than in a balloon at the end, which returns capital continuously rather than all at once.
This is not a complete list. Capital is subject to loss and each fund's offering documents contain the full risk factors.
MitigantEvery fund lends against collateral and holds a priority position, but borrowers can still fail. Diversification across many positions and conservative loan-to-value ratios are what stand between a default and your return.
The realityOne and two-year note terms or a two-year lockup. Notes are not freely transferable and redemptions are subject to gates. Commit only capital you can leave alone for the full term.
The realityDistributions depend on available cash and the performance of the underlying portfolio. A fund may defer or reduce payments if cash is insufficient.
The realityYou sit ahead of equity, not ahead of everyone. Notes may be subordinate to senior bank indebtedness incurred by the fund itself.
The realityIncome Fund II is newly formed with no audited financial statements. Prior performance by the manager in other ventures does not predict results here.
The trade-offInterest income is taxed as ordinary income. These funds trade tax efficiency for current yield, which is the opposite trade from the Legacy Fund.
Founder · Expedition Equity
Dylan is responsible for investment strategy, underwriting oversight and capital allocation at Expedition Equity. His background covers building and operating multi-location businesses, evaluating real-asset and operating-company investments, and navigating private-market structures across several asset classes.
That experience informs a disciplined, risk-aware approach to which opportunities get brought to investors and which partnerships are worth making. An early career in healthcare shaped a process-driven, analytical approach to risk and decision-making.
Across all three credit funds, the aim is the same: put investor capital in a position that gets paid before equity does, secured against something real.
Lending money directly to borrowers rather than buying an ownership stake. You collect a contracted interest rate instead of a share of the profits, and you're secured against collateral. The US private credit market has grown past $1.7 trillion as banks pulled back from middle-market lending.
Kudo if you want the simplest structure, monthly income and the shortest commitment at one year. Income Fund II if you want the highest headline rate and can leave capital for two years. The Private Credit Fund if you want ongoing income plus profit-share upside in an open-ended structure rather than a fixed term.
Yes. Each fund is a separate investment with its own documents, and the $50,000 minimum applies to each. Bring the split you're considering to the call and Dylan will model it with you.
Higher rate, less liquidity. Traditional bonds pay 4 to 6% and publicly traded BDCs around 5 to 8%, with the ability to sell any day. These funds target 10 to 14% and ask you to commit for one to two years. You're being paid for giving up the exit.
Collateral is the answer, and it differs by fund. The Private Credit Fund holds preferred positions in commercial real estate, generally with takeover rights on default. Income Fund II lends at conservative loan-to-value against real property. Kudo's portfolio is designed to absorb more than 25% defaults before investor returns are affected.
Larger commitments cost less to administer per dollar and give the fund more certainty when sizing positions. Kudo steps from 11% to 12% at $250,000 and to 13% at $500,000. Income Fund II works the same way across its note series.
Interest income is generally taxed as ordinary income, which makes these funds the least tax-efficient thing Expedition Equity offers. That's the trade for current yield. If tax efficiency matters more than income, the Legacy Fund is built the opposite way.
Kudo pays monthly starting after your first full month. The Private Credit Fund pays the preferred return quarterly after three months, with profit share also quarterly. Income Fund II pays monthly distributions, with deferred interest at maturity.
Twenty minutes is usually enough to work out which of the three fits what you're solving for, whether that's monthly income, the highest rate, or the shortest commitment.
Kudo Income Fund commitments are handled directly. Book a call or email investors@expeditionequity.com.
