COMPANY'S BACKGROUND

SynCore Capital

SynCore Distressed Opportunity Fund (“SynCore” or “Fund”) is focused on purchasing discounted loans collateralized by real estate (“Loans” or “Notes”) or distressed real estate to restructure and provide strong yields to our investors.

With the sustained reduction in lender’s credit quality caused by the economic impact of COVID-19, SynCore believes now is the ideal time to acquire discounted loans collateralized by real estate from banks and lenders.

The economic conditions are very good given the forced shutdowns and the occupancy limits mandated by federal, state and local governments, coupled with foreclosure and eviction limitations. We believe these are short term negative impacts, that will rebound and can easily be priced into the discounted purchase.

Purchasing the loans, versus purchasing the distressed real estate provides additional exit strategies, as well as limits the lender’s buyer pools. This is specifically the case in the asset size SynCore is focused on purchasing, typically in the $2 -$7 million range. This price point typically prices out ‘mom-&-pop’ investors but is below the threshold for larger private equity and/or hedge funds.

Once the discounted loans are purchased, SynCore will implement strategies to restructure the debt or aggressively take action to control the collateral, many of which strategies Banks aren’t able to implement due to FDIC limitations. These limitations aren’t applied to private lenders. Additionally, the discounted purchase price of the Note, allows for more exit strategies and flexibility to pivot.

Since 2013, management and its affiliated companies have successfully identified, acquired and restructured millions in distressed debt. To date, Management owns and operates over $10 million in real estate acquired in its distressed state.