JF 4060: Debt Funds, Diversification and Predictable Cash Flow ft. Pascal Wagner

Oct 16, 2025

Pascal Wagner dives into private real estate debt funds and what makes a yield truly safe. He shares insights from interviewing over 75 fund operators, revealing crucial factors like structure, leverage, and transparency. Discover why stability trumps chasing higher returns, and learn practical strategies for building a diversified, income-focused portfolio. Pascal discusses risks associated with returns over 12% and outlines the ideal characteristics of low-risk funds, emphasizing the importance of consistent distributions for long-term success.

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ANECDOTE

Personal Move Into Private Debt

Pascal described deploying over $3.3 million across 23 private deals and generating $100k/year in income.
He used that income to support his family and manage his mother's finances after his father's death.

ADVICE

Cap Exposure Per Operator

Limit exposure so no single operator or deal exceeds about 5% of your net worth.
This prevents one bad outcome from derailing your willingness to invest again.

INSIGHT

10% Returns Aren't Equal

Different funds promising similar returns can have vastly different risk from leverage, loan position, and size.
Comparing fund structure, leverage, and loan count is essential to true risk assessment.

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