By John Lloyd, CEO, Fidelis Private Fund
There is a specific kind of “knot in the stomach” that every seasoned investor knows. It’s that subtle, persistent anxiety that surfaces when the headlines turn volatile and the markets begin to shift. For many of us, the primary concern isn’t “How much can I make?” but rather, “Is my principal safe?“
At this stage in your financial journey, you’ve done the hard work of building wealth. Now, the priority shifts toward Capital Preservation. In the world of real estate-backed Fixed Income, the single most powerful tool we have to protect your capital isn’t a complex algorithm—it is the Loan-to-Value (LTV) ratio.
The Anatomy of a Margin of Safety
In its simplest form, the LTV ratio is the mathematical expression of risk. It measures the relationship between the loan amount and the appraised value of the property securing that loan.
Why does this matter so much? Because the inverse of the LTV is the Equity Buffer. If a loan has an LTV of 60%, it means the borrower has a 40% equity stake in the property. That 40% represents your “margin of safety.” The property value could drop significantly, and your principal investment would still be covered by the underlying collateral.
The Fidelis Advantage: Strategic Cross-Collateralization
One of the most effective ways we protect our investors is through cross-collateralizing our loans with multiple properties. Rather than relying on a single asset, we often secure a loan against several pieces of real estate.
This strategy does more than just diversify the risk—it helps lower the LTV ratio on individual loans by bringing more collateral to the table. By spreading the security across multiple properties, we create a much more stable foundation for each dollar invested.
The “Innerworld” of Fidelis: A Portfolio-Wide Commitment
At Fidelis Private Fund, we view ourselves as stewards of your capital. Our philosophy is built on the belief that a conservative entry point is the best defense against an unpredictable exit.
While the industry average often hovers around 75% LTV, we intentionally operate with a more disciplined mandate. As of 2026, the Fidelis loan portfolio as a whole maintains an average combined LTV ratio of less than 60%.
This isn’t because we are timid; it’s because we are relationship-driven protectors of wealth. We would rather pass on a high-yield, high-risk deal than compromise the security of our investors’ principal.
Precision in Our Operations
To maintain this level of protection, our operational structure is designed for maximum oversight:
- In-House Origination & Underwriting: We originate and underwrite every loan ourselves. This means my team and I personally review every appraisal, vet every borrower, and walk the properties. We make the ultimate “yes” or “no” decision based on our strict conservative criteria.
- Professional Servicing: Once a loan is funded, we transition to a professional, trusted third-party loan servicer. This ensures that the administrative side—collecting payments and processing payoffs—is handled with institutional-grade precision, while we remain focused on strategic portfolio management.
Stewardship Over Salesmanship
In a higher-interest-rate environment, the quality of the collateral is everything. By maintaining a sub-60% portfolio average, we aren’t just making loans; we are creating a defensive moat around your investment.
If a borrower faces challenges, that 40%+ equity cushion provides the breathing room necessary to resolve the situation without impacting your capital. It allows us to be proactive rather than reactive.
Investment is, at its core, an act of trust. I’ve always believed that the best way to build a partnership is through transparency. I don’t want to be a name on a quarterly statement; I want to be a resource for you. I answer my own phone, and I’d love to hear your story and discuss how our underwriting protects your future.
John Lloyd President & CEO, Fidelis Private Fund
760-258-4486 | jlloyd@fidelispf.com
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Fidelis 2028 Vivid Vision – Where are we going and how are we going to get there!
The Fidelis 2028 Vivid Vision document provides a comprehensive blueprint of the company’s strategic direction, core values, and operational principles, highlighting its commitment to capital preservation, growth, innovation, and client-centric services. Click to read the Fidelis vision.