SEC registered
$100 minimum investment
+2,700 members
13.9% net interest since inception
As seen on:
Heron builds you a customized portfolio of private corporate loans, all managed by established credit funds with proven track records.
9-13% projected net interest rate, after fees.
$100 minimum investment.
No lockups. Request redemption at any time.
Steady monthly income, from institutional quality loans
I'm passively earning a higher rate of return than I'd get anywhere else.
Will T.
Institutional quality
Invest alongside credit funds with strong track records of consistent returns and low loss rates.
Attractive yields
Since Heron's inception, Heron investors have received 13.9% net interest rate, after our flat 2% management fee.
Set and forget
Let your portfolio work for you as we automatically manage and update it on your behalf.
Uncorrelated returns with lower volatility
The loans on Heron, also called “private credit”, are largely uncorrelated to the stock and bond markets.
Institutional quality
Invest alongside credit funds with strong track records of consistent returns and low loss rates.
Attractive yields
Since Heron's inception, Heron investors have received 13.9% net interest rate, after our flat 2% management fee.
Set and forget
Let your portfolio work for you as we automatically manage and update it on your behalf.
Uncorrelated returns with lower volatility
The loans on Heron, also called “private credit”, are largely uncorrelated to the stock and bond markets.
How much passive income do you want to generate?
Enter your target monthly income and interest rate to calculate the estimated initial investment to achieve it.
Initial investment to achieve target
$180,000
Diversified portfolio of loans, managed by established credit funds
Private credit opportunities with high rates sourced along side institutional buyers.
Jason H.
All of the loans on Heron are structured and managed by institutional credit funds.
Credit Fund Criteria:
- No more than 1% annualized loss rate over life of fund
- Experienced team of professionals with 10+ years institutional lending experience
- At least 8% net interest rate over life of fund
- Highly selective diligence process with low deal approval rate
- Robust operational infrastructure including third-party fund administrator, comprehensive risk management framework, and portfolio transparency
Historical Performance of Credit Funds on Heron Finance
Historical Loss Rate
0%
The percent of all loan principal on Heron Finance that wasn't paid back, on an annualized basis, since inception.
Historical Interest Rate
13.9%
The aggregate interest rate paid on all loans on Heron Finance, on an annualized basis, since inception.
Share your preferences, get a custom portfolio
Easy onboarding, easy diversification, full transparency and control over how to allocate your funds.
Oleg
A diversified portfolio from the Heron platform.
Heron has loans from a broad range of sectors, regions, and risk levels. We build and automatically update a custom portfolio for you based on your preferences.
Total loans on Heron Finance
6
Annualized net interest since inception
13.9%
Loss rate since inception
0.00%
Senior secured loans, % of total
86%
Real Estate
31%
Industrials
31%
Financials
38%
United States
77%
Non-United States
23%
Invest with confidence
<1%
Loss Rate
The loans on Heron are from credit funds we carefully select based on their track record. They all have less than a 1% annualized loss rate, and years of experience structuring and managing loans.
SEC Registered
Heron Finance is an SEC-registered investment advisor (RIA), managing money and providing investment advice to U.S. accredited investors.
Established Credit Funds
The loans on Heron Finance are from established credit funds that directly manage the borrowers. These funds are often only accessible to institutional investors, but Heron is expanding access to more investors.
Backed by the best
Your questions, answered
2% annual management fee.
Simple flat rate, no performance fee.
9-13% projected net interest rate, after fees.
Choose your target return based on your risk tolerance.
$100 minimum investment.
Easy to get started with a small investment.
No lockups. Request redemption at any time.
We aim to fulfill requests in as little as 30 days, on a best effort basis.
What is Heron Finance?
Heron Finance is a digital platform that enables U.S. accredited investors to access institutional-quality passive income opportunities, in the form of loans to private companies. These types of loans are also called “private credit”. This has long been an attractive asset class for institutions, and now Heron is helping accredited investors access private credit with automated portfolios. When you sign up, Heron builds you a customized portfolio of private corporate loans, all managed by experienced credit funds with proven track records.
What am I actually investing in? What do I own?
When you invest with Heron Finance, you are investing in loans that are part of the ”private credit“ asset class. Private credit refers to any loan that occurs outside of public exchanges (i.e., they are done in the private markets).
More specifically, when you invest in private credit with Heron Finance, you are investing in fractional shares of loans made to small- and medium-sized businesses, both in the United States and around the world. This means that you have a participation interest in an underlying loan, effectively making you a direct lender to the borrower, with all the applicable rights and responsibilities. These loans are usually backed by real world assets, personal guarantees from the borrowers (including recourse to their personal wealth or real estate), consistent cash flow, or a combination of these.
These loans are often used to expand an existing business, buy a competitor, finance a new acquisition, buy real estate, or lend to others (eg, micro-lending).
As a creditor, you won't own any part of the borrower's business, but you will have preferential treatment when it comes to recovering your investment in the case of a default or liquidation.
To learn more about private credit, check out our comprehensive article: How to Invest in Private Credit.
More specifically, when you invest in private credit with Heron Finance, you are investing in fractional shares of loans made to small- and medium-sized businesses, both in the United States and around the world. This means that you have a participation interest in an underlying loan, effectively making you a direct lender to the borrower, with all the applicable rights and responsibilities. These loans are usually backed by real world assets, personal guarantees from the borrowers (including recourse to their personal wealth or real estate), consistent cash flow, or a combination of these.
These loans are often used to expand an existing business, buy a competitor, finance a new acquisition, buy real estate, or lend to others (eg, micro-lending).
As a creditor, you won't own any part of the borrower's business, but you will have preferential treatment when it comes to recovering your investment in the case of a default or liquidation.
To learn more about private credit, check out our comprehensive article: How to Invest in Private Credit.
What are the risks? What happens in a default?
When you invest with Heron Finance, you are investing in loans that are part of the “private credit” asset class. We believe private credit offers a unique return profile since it is less correlated with traditional asset classes like stocks and bonds, which can make it a compelling way to diversify a broader investment portfolio.
However, like any asset class, private credit comes with risks. These include broader economic risks like the changing macroeconomic climate and interest rates, as well as risks specific to lending like the possibility of a borrower defaulting or taking longer to pay back a loan. We mitigate these risks by working with experienced credit funds that have a demonstrated track record of <1% annual loss rates, and these funds manage any potential default situations. In addition, we diversify your portfolio across many loans.
To learn more about the unique risks of private credit , what we do to mitigate them, and how they compare to other investments, see our article: What are the risks of private credit?
However, like any asset class, private credit comes with risks. These include broader economic risks like the changing macroeconomic climate and interest rates, as well as risks specific to lending like the possibility of a borrower defaulting or taking longer to pay back a loan. We mitigate these risks by working with experienced credit funds that have a demonstrated track record of <1% annual loss rates, and these funds manage any potential default situations. In addition, we diversify your portfolio across many loans.
To learn more about the unique risks of private credit , what we do to mitigate them, and how they compare to other investments, see our article: What are the risks of private credit?
How have these types of loans performed historically?
When you invest in loans with Heron Finance, you are investing in the “private credit” asset class. For more than 30 years, private credit fund managers have provided consistent returns that outperform the S&P 500 (source: Prequin, NYU Stern). They have also done so with lower volatility than the stock market and without a single negative annual return. Obviously, past returns are no guarantee of future results.
To learn more about private credit’s performance, check out our articles:
To learn more about private credit’s performance, check out our articles:
What is the recommended investment amount or percentage?
When you invest in loans with Heron Finance, you are investing in the “private credit” asset class. The recommended percentage of a portfolio to invest in private credit can vary depending on your goals, risk tolerance, investment horizon, and overall financial situation.
To get a sense of the range you might consider, institutional investors like pension funds, hedge funds, and asset managers allocate 3-30% of their investments to private credit. A conservative approach might be on the low end of that range, and an aggressive approach might be on the high end.
To learn more about recommended ratios for private credit, and for alternative assets more broadly, see our article: Recommended ratios for alternative investments.
To get a sense of the range you might consider, institutional investors like pension funds, hedge funds, and asset managers allocate 3-30% of their investments to private credit. A conservative approach might be on the low end of that range, and an aggressive approach might be on the high end.
To learn more about recommended ratios for private credit, and for alternative assets more broadly, see our article: Recommended ratios for alternative investments.
What are the fees?
The only fee Heron Finance charges is a 2% annual management fee. Unlike other investment platforms, we do not charge early withdrawal fees, nor do we take a percentage of returns. There are no additional hidden fees or expenses outside of the 2% management fee.
The interest rate shown in your portfolio is net of fees, so this is the amount remaining after fees have been deducted.
The interest rate shown in your portfolio is net of fees, so this is the amount remaining after fees have been deducted.
What is the lock-up period and liquidity policy?
Unlike most private credit funds, Heron Finance doesn't require a multi-year (or even multi-month) lockup. You can request to redeem your portfolio or a portion of your portfolio at any time. We aim to fulfill your request in about 30 days. In certain situations, it may take longer, but we will make every effort to fulfill your request as quickly as possible.
To learn more about our liquidity policy, read Our Approach to Liquidity.
To learn more about our liquidity policy, read Our Approach to Liquidity.
What are the criteria for being an accredited investor?
In order to invest with Heron Finance, you must be an accredited investor. The term “accredited investor” refers to a definition created by the U.S. Securities and Exchange Commission (SEC). Anyone automatically qualifies as an “accredited investor” if they meet just one of the following criteria:
You can verify your status as an accredited investor as a part of our sign-up process. The documents you need will depend on the method of verification. You only need to verify via one of the following:
To learn more about how to become accredited, see our article: 4 Easy Steps to Becoming an Accredited Investor.
- Income: Individual income of $200,000, or joint (with a spouse or partner) income of $300,000 for the two prior years, with the same anticipated in the current year
- Net Worth: Individual or combined (with a spouse or partner) net worth of $1 million or greater, excluding your primary residence
- Exam: A Series 7, 65, or 82 in good standing
You can verify your status as an accredited investor as a part of our sign-up process. The documents you need will depend on the method of verification. You only need to verify via one of the following:
- Income verification: Connect your payroll provider, or upload W-2s, K-1s, 1099s, paystubs, or tax returns to verify your income
- Net worth verification: Bank statements, brokerage statements, securities holdings statements, certificates of deposit, tax assessments, or appraisal reports (Note: when you use the net worth verification, we pull a “soft” credit report that will not impact your credit score.)
- 3rd party letter: A letter from an attorney or accountant testifying that you are accredited
To learn more about how to become accredited, see our article: 4 Easy Steps to Becoming an Accredited Investor.
It seems like Heron is a startup, what happens if it shuts down?
Our company was founded in 2020, and we've received $37M in funding from some of the best investors in the world, including Andreessen Horowitz, Kindred Ventures, and SV Angel.
We see a very bright future for our company in a rapidly growing industry, but we are also prepared for the (unexpected) worst. First, all of the loan participations in your portfolio are held in a separate legal entity from the one that we use to run our day-to-day operations. Second, Heron Finance works with a qualified custodian, Wilmington Savings Fund Society (WSFS), that custodies all of the loan participations. In the event that Heron Finance's operating entity were to shut down, that separate holding entity and WSFS would work to identify a backup service provider and custodian, that could manage the assets and work to facilitate the return of your capital.
We see a very bright future for our company in a rapidly growing industry, but we are also prepared for the (unexpected) worst. First, all of the loan participations in your portfolio are held in a separate legal entity from the one that we use to run our day-to-day operations. Second, Heron Finance works with a qualified custodian, Wilmington Savings Fund Society (WSFS), that custodies all of the loan participations. In the event that Heron Finance's operating entity were to shut down, that separate holding entity and WSFS would work to identify a backup service provider and custodian, that could manage the assets and work to facilitate the return of your capital.
How does Heron Finance use the blockchain?
Heron Finance is built on blockchain technology in order to offer you reduced costs, increased transparency, and greater interoperability. Blockchain can transform finance from being siloed and intermediated to interoperable and direct, fostering an open financial system that is safer, stronger, and more inclusive. Heron does not use speculative cryptocurrencies like bitcoin with volatile pricing; rather, it uses blockchain as infrastructure, like an open-sourced version of centralized services such as Amazon AWS or Google Cloud. Heron Finance mitigates risks through a skilled engineering team, rigorous security practices, and a battle-tested blockchain protocol called Goldfinch.
To learn more, see our article: Why Blockchain? How Heron Finance's Investors Benefit from Blockchain Technology
To learn more, see our article: Why Blockchain? How Heron Finance's Investors Benefit from Blockchain Technology
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Disclaimers and footnotes
The information on this website does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Further, none of the information contained on this website is a recommendation to invest in any securities or a recommendation of any interest in any investment offered by Warbler Labs, Inc. or any of its subsidiaries (collectively, “Warbler”).
Any financial forecasts or financial returns, whether in the form of dividends or capital appreciation displayed on this website are for illustrative purposes only and are not a guarantee of future results. Private credit investments are subject to credit, liquidity, and interest rate risk. In the event of any default by a borrower, you will bear a risk of loss of principal and accrued interest on such loan, which could have a material adverse effect on your investment. A borrower may default for a variety of reasons, including non-payment of principal or interest, as well as breaches of contractual covenants. Credit risks associated with the investments include (among others): (i) the possibility that earnings of a borrower may be insufficient to meet its debt service obligations; (ii) a borrower's assets declining in value; and (iii) the declining creditworthiness, default, and potential for insolvency of a borrower during periods of rising interest rates and economic downturn.
Any investment target interest rate presented here is intended for informational purposes only and does not guarantee future performance or results. This model assumes no variability, including no loan defaults, fluctuations in interest rate, customer withdrawal requests, late payments, or penalties, and our management fees have remained unchanged throughout this projection. Please be aware that all investment involves inherent risks, and past performance is not indicative of future outcomes. Customers are advised to consult their own legal and tax advisers regarding their specific circumstances and needs. We do not accept any liability for any loss or damage arising from the use of this information or for any actions taken based on this information without seeking professional advice.
No communication by Warbler or any of its affiliates through this website should be construed or is intended to be investment, tax, financial, accounting, or legal advice. Warbler Advisory, Inc. is an SEC-registered investment advisor (RIA). Such registration should in no way imply that the SEC has endorsed the entities, products or services discussed herein.
We are currently offering a referal bonus of $100 for new customers that invest at least $1,000. The referral bonus will be paid out to both the referrer and the referee within 30 days of the referee's investment. The referee must be a new customer and must invest at least $1,000 in order for both parties to receive the bonus. The reward will be issued as a deposit of 100 USDC directly into the portfolios of the respective parties. We reserve the right to modify, amend, or terminate any incentive programs, promotions, or rewards at any time, with or without prior notice. For the most current information and terms, please contact [email protected].
Any financial forecasts or financial returns, whether in the form of dividends or capital appreciation displayed on this website are for illustrative purposes only and are not a guarantee of future results. Private credit investments are subject to credit, liquidity, and interest rate risk. In the event of any default by a borrower, you will bear a risk of loss of principal and accrued interest on such loan, which could have a material adverse effect on your investment. A borrower may default for a variety of reasons, including non-payment of principal or interest, as well as breaches of contractual covenants. Credit risks associated with the investments include (among others): (i) the possibility that earnings of a borrower may be insufficient to meet its debt service obligations; (ii) a borrower's assets declining in value; and (iii) the declining creditworthiness, default, and potential for insolvency of a borrower during periods of rising interest rates and economic downturn.
Any investment target interest rate presented here is intended for informational purposes only and does not guarantee future performance or results. This model assumes no variability, including no loan defaults, fluctuations in interest rate, customer withdrawal requests, late payments, or penalties, and our management fees have remained unchanged throughout this projection. Please be aware that all investment involves inherent risks, and past performance is not indicative of future outcomes. Customers are advised to consult their own legal and tax advisers regarding their specific circumstances and needs. We do not accept any liability for any loss or damage arising from the use of this information or for any actions taken based on this information without seeking professional advice.
No communication by Warbler or any of its affiliates through this website should be construed or is intended to be investment, tax, financial, accounting, or legal advice. Warbler Advisory, Inc. is an SEC-registered investment advisor (RIA). Such registration should in no way imply that the SEC has endorsed the entities, products or services discussed herein.
We are currently offering a referal bonus of $100 for new customers that invest at least $1,000. The referral bonus will be paid out to both the referrer and the referee within 30 days of the referee's investment. The referee must be a new customer and must invest at least $1,000 in order for both parties to receive the bonus. The reward will be issued as a deposit of 100 USDC directly into the portfolios of the respective parties. We reserve the right to modify, amend, or terminate any incentive programs, promotions, or rewards at any time, with or without prior notice. For the most current information and terms, please contact [email protected].