The fund's goal is to "take advantage of the current credit dislocation and achieve above average returns for itself by acquiring existing performing real estate assets at a discount." The acquisition parameters of CSV Capital are as follows: the purchase of loans ranging in amounts from $25 to $50 million per individual transaction, and up to $150 million per transaction for large portfolios; all asset types--except hotels will only be considered if included in a portfolio of diverse assets--65% to 85% market adjusted loan-to-value for last dollar invested; and mostly floating rate loans but will consider purchasing fixed-rate loans with maturities no greater than 10 years

CSV Capital intends to continue purchasing discounted mezzanine loans, B-Notes, participation interests, mortgage and mezzanine whole loans and preferred equity interests in performing assets secured by real estate located in major markets across the country.

According to a prepared company statement, "CSV Capital has a competitive advantage over other 'vulture' distressed and opportunistic funds currently in the market due to its lower cost of capital and its affiliation with a major insurance company. CSV Capital's lower cost of capital will enable it to purchase assets at a lower yield than its competitors while still being able to achieve its targeted returns."

As GlobeSt.com previously reported, CSV has already acquired more than $300 million in secondary market B-note, mezzanine and preferred equity loans in 10 stand alone transactions and has a great deal of experience in pricing, underwriting and quickly closing these types of investments. A company source told GlobeSt.com at the time that the $300-million closing was a follow-up to Carlton's formation of the new $1-billion fund.