High Yield Resilience Opportunity Fund

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The following information is an investment summary provided to prospective investors. This information is not a formal offering to sell either a security or a solicitation to sell a security. At the request of a recipient, the Company will provide a private placement memorandum, subscription agreement and the Limited Liability Company Operating Agreement. The Managing Member in no way guarantees the projections contained herein. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. This investment is illiquid and only those persons that are able and prudence in your decision is strongly suggested. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you

Dr. Vikram Raya

CEO/Founder vraya@vikingcapllc.com

Dr. Ravi Gupta

COO/Founder rgupta@vikingcapllc.com

FUND AT A GLANCE

OPPORTUNITY

PREFERRED EQUITY

INVESTMENT CLASSES

RETURNS & ENHANCED ECONOMICS

INVESTMENT STRATEGY

EXAMPLE ASSETS

Viking Capital High-Yield Resilience Opportunity Fund (HYRO) collaborates with operators requiring additional capital for highperforming multifamily assets across the U.S. Through second-position preferred equity investments, we enhance risk mitigation and offer consistent cash flow. Our fund is designed for assets performing well but needing funds for purposes like rate caps, operating reserves, refinancing, capital expenditures, and minimizing the need for capital calls. We focus on cash-flowing assets with strong financial operations, partnering with successful sponsors to achieve investment objectives.

ACCREDITED INVESTORS ONLY

2 - 4 $2 - 5M 1990+ 5+ $10M B - A+

HOW DOES IT WORK?

Target Properties Are Not in Distress or At Risk of Foreclosure

Your Investment is Diversified Across All Assets In The Fund

The Fund Takes a Preferred Equity Position Only Opportunity To Take Advantage Of The Market Cycle Right Now Backed By Esteemed Viking Capital

PAY FOR RATE CAP

BOLSTER OPERATING RESERVES

OBTAIN FUNDS FOR A REFINANCE

COMPLETE CAPITAL EXPENDITURES

FLOATING RATE BRIDGE FUNDING

POTENTIALLY TROUBLED LOANS BY MATURITY YEAR:

$1.2 T of Outstanding CRE Debt Is Potentially Troubled,

$626B Maturing In 2023-2025

Market dynamics have changed, which sometimes requires a change in strategy.

One alternative to common equity investing is to consider a different part of the capital stack, namely debt and preferred equity.

preferredequity

The main advantage of preferred equity is its priority position in the capital stack (just behind the debt), ensuring pref equity investors are compensated ahead of the current common equity investors and immediately after any debt obligations. Further, given the current dynamics of the market, one of the other most compelling attributes of pref equity lies in the downside protection.

Common equity serves as an initial buffer, absorbing any initial losses before affecting pref equity investors. On top of that, the property itself serves as further collateral to protect your investment.

PREF EQUITY & THE CAPITAL STACK

metrics

Viking Capital Pref Fund exclusively focuses on investing in stabilized or nearly stabilized deals, ensuring they can comfortably generate "current cash flow" starting within the month following the close of each asset.

YES, THAT'S RIGHT – CASH FLOW STARTS IN MONTH 1!

With Viking Capital High Yield Resilience Fund you begin experiencing returns immediately, unlike deals that require waiting for stabilization to see significant cash flow

Moreover, there's no need to wait until the fund's close; you start receiving cash flow in the month following your investment.

Investor

Important Notes:

PREFEQUITY MULTIFAMILY

Strategy

VETTING THE ASSET AND THE OPERATOR

subject property has solid debt in place and is current on payments. In addition, the operator will still need to obtain approval from their lender.

conduct a thorough examination of the subject property’s occupancy patterns and collection records. Occupancy& CollectionsAudit DebtVerification

should have a current valuation of at least $10 Million, and It should also have a well-defined exit strategy than can be executed within 36 months or less from the time funds are required.

fundamentals are a critical factor when considering an asset for participation In the fund. We will only look at properties that are in ideal markets

of analysts will meticulously evaluate every asset using our refined underwriting model, honed and perfected over several years and 25 acquisitions.

selecting operators that hold the same values as Viking Capital. This includes transparent communication with their investors, and monthly newsletters. As well as operators that take initiative to utliize ESG efforts.

TrackRecord Values Performance Management

operators track record. Operators must meet this criteria: 1,000 doors, at least 4 years of experience, 4+ portfolio assets.

y with operators that have a successful track record with full cycle deals and exits. operators that are able to continue to manage the property and through these additional funds execute scheduled capex plans.

focus will be the key growth markets in the Sun Belt, including orgia, and Indiana – all markets where we have existing assets, ections, intimate market knowledge, and strong management ce. That being said, we are not limited to these markets and will to follow the opportunities as the overall market evolves

MULTIFAMILY UNITS

6.3% IN-PLACE DEBT YIELD 92% CURRENT OCCUPANCY

When we find an asset that meets our criteria, Including strong sponsor track record, we will send you the full details and financials (much more than what you see here) so you can decide whether to opt in.

2010 YEAR BUILT 4.2% FIXED RATE FINANCING

For now, here’s a high level multifamily asset example. Keep in mind that this is just that - a fictional example, not a real asset.

That being said, the criteria here are based on real targets we aim for them evaluating potential assets for the fund. As such, if we found an opportunity with these parameters, operated by an experienced sponsor, we would likely consider it for this fund.

MULTIFAMILY UNITS

2003 YEAR BUILT 5.9% VARIABLE RATE

$5.5M PREF NEEDED 93% CURRENT OCCUPANCY

In 2021, XCapital acquired a Multifamily property in a favorable market using a 3-year variable rate bridge loan. Although the owner has effectively implemented their business strategy, the current rise in interest rates has created challenges for refinancing. As the 2024 maturity approaches, opting for agency refinancing at a significantly higher interest rate would result in a shortfall of $6 million, coupled with an additional $1.5 million required for capital expenditures. With only $2 million on hand, the owner is seeking a $5.5 million Preferred Equity investment to successfully complete the refinancing process.

Viking Capital

Viking Capital was founded in 2015 and is a boutique premier multifamily investment firm with agile investment sourcing, structuring, execution, and asset management capabilities and the flexibility to scale and cater to investor preferences.

Through its team of acquisitions, asset management, and disposition experts, Viking Capital invests in tier 1, secondary, and tertiary markets across the United States.

Raya CEO / Founder
Ravi Gupta
COO / Founder

EXECUTIVE TEAM

VikramRaya CEO,Co-Founder

EdMonarchik Directorof AssetManagement

RaviGupta COO,Co-Founder

ChrisParrinello Directorof InvestorRelations

JudahFuld VPofAcquisitions

NathanLoy Directorof StrategicPlanning

AmandaLoveless DirectorofOperations

AshleyPenrod DirectorofMarketing

AmirNassar InvestorRelations Manager

AmberButler Investor Concierge

track record

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