Investing with Stallion Capital Management, through the Investor First Fund, is not a fit for everyone, and we want to be upfront about that from the start. The fund is limited to accredited investors, the minimum investment is $100,000, and our average first-time investor commits closer to $250,000. This is a deliberate, specific tool for a specific kind of investor.
Who This Fund Is For
This fund is built for someone who has already accumulated assets and has sufficient liquidity elsewhere. You’re not relying on this capital to cover monthly expenses. Chances are you already hold investments in the stock market, maybe some bonds, maybe real estate you’ve owned or rented out.
What you’re looking for now is a strong option for the fixed income portion of your portfolio: something that pays more than a CD or a government bond, without putting that capital at meaningful risk. You’re also probably looking for real diversification away from the stock market.
That diversification matters more than ever. The market has been strong since 2020, especially through this AI-driven run, but it hasn’t been without real volatility. The Investor First Fund is designed for investors who want a piece of their portfolio that doesn’t move in lockstep with the market. These investors want capital that lets you leave your other investments alone rather than sell into a downturn.
The Return, in Plain Math
The idea driving this fund is simple: predictable income. We target an 8.5% annual preferred return, paid out monthly. That won’t outrun the stock market in a great year, and it isn’t designed to. It’s designed to be steady.
On a $250,000 investment, an 8.5% target return breaks down to roughly 0.7% a month, which is about $1,770 landing in your account on a regular monthly basis.
What Sets It Apart
Two things separate this from a typical income investment.
First, every investment is backed by collateral. We lend against real estate, always in the first-lien position, meaning we hold the first claim on the property if something goes wrong.
Second, we keep exposure conservative with low loan-to-value ratios on every loan, which builds in an equity buffer for added safety.
That’s the core of the strategy: capital preservation first, a solid and dependable return second. We’re not trying to chase the numbers you’d see in a strong stock market year. This fund is built to be predictable, and built to protect your capital. As with any investment, loss is possible, including loss of your entire investment. But the entire structure is engineered to move away from risk, and it’s a system that has held up across two decades of both up and down markets.
A Note on Tax Structure
There’s also a potential tax advantage worth understanding. The fund includes a REIT subsidiary, which means this income may qualify for the Qualified Business Income Deduction. For many investors, that can meaningfully improve after-tax returns compared to other income-producing investments. How much it helps depends entirely on your individual tax situation, so it’s worth a conversation with your tax advisor. It’s worth noting that it is one reason investors find this structure appealing.
The Honest Downside
Every investment has a trade-off, and we want to be direct about ours: this is an illiquid investment. When we accept your capital, we lend it out against real estate, typically on twelve-month loans. That means your capital should be expected to stay in the fund for at least twelve months. After that, redemptions require 90 days’ written notice. Our average investor stays in the fund for approximately five years.
This is not a savings account, and you cannot pull your money out on short notice. If you know you’ll need this capital back quickly, this isn’t the right fit. It’s best suited to investors with some prior experience in alternative investments. That said, most of our investors choose to stay with us for many years once they’re in.
How You Can Invest
The Investor First Fund fits into the accounts you already use. You can invest through a normal cash account, or through an IRA or Roth IRA. We’re available on the Fidelity and Schwab platforms, along with several others, so we can work alongside your financial advisor to make this part of your broader portfolio.
Essentially, the Investor First Fund is a solid, dependable return with real collateral standing behind your investment. Always in the first-lien position, with a conservative equity buffer built in. The trade-off is liquidity; if your time horizon is short, this isn’t the right vehicle for you. But if you can commit capital for at least twelve months, the Investor First Fund can become a meaningful part of your portfolio: the part built for predictability, peace of mind, and protecting what you’ve worked hard to earn.
If you have questions, we’d love to talk through the specifics of how the fund works. Reach out to us here.
