Private Credit Simplified for Advisors
Give your accredited clients exposure to 1000s of loans from leading private credit funds all in one portfolio and one tax document.
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Generate yield for your clients from institutional quality loans.
World-class fund managers
Access to world-class fund managers like Ares, Golub, Apollo, and more—with over $1 trillion in collective AUM.
Diversified portfolios
Portfolio diversification across 1000+ loans from all 11 GICS sectors and multiple credit managers.
Targeting 7-12% yield
Yield targets of 7% to 12% net of fees based on your client's risk profile.
We use a proprietary scoring model to select funds from Ares, Apollo, Golub, and more of the world's highest quality private credit managers.
Experience
Fund managers with 10+ years of track record across multiple market cycles.
Scale
Managers with multi-billion dollars in assets under management.
High-quality yield
Stable distributions from funds with 90%+ first lien senior secured loans.
Appropriate risk
Low non-accruals, leverage and realized losses with a high percent of first-lien loans.
Our scoring model looks for credit funds with:
- Proven performance Audited fund financials
- Experienced managers At least 10-year track record
- Consistent yield At least 8% net interest rate, over life of fund
- Low losses No more than 1% annualized loss rate, over life of fund
- Fund scale At least $1B AUM in fund or fund family
- Quality risk management Robust operational infrastructure and risk management framework
We personalize and manage your clients’ investments, ensuring ongoing portfolio optimization.
We personalize and manage your clients’ investments, ensuring ongoing portfolio optimization.
Personalization
We customize client portfolios on your behalf, targeting specific yields and more based on each client’s personal preferences.
Automated Management
We automatically allocate and rebalance investor portfolios for you, adding new loan exposures, depending on their risk preferences.
Ongoing Optimization
You can update a client’s risk preferences to change the portfolio’s exposures and target yield.
Our process makes delivering customized portfolios simple for your firm.
Streamlined firm operations
We aggregate exposure to multiple funds for you. You simply access one agreement, one report, and one tax form for every diversified client portfolio.
Request redemption at any time
You can request redemption at any time on behalf of your clients. We aim to fulfill requests within one quarter, subject to available liquidity.
$5,000 minimum investment
Take advantage of low minimums, even for loans from private funds, making exposure to private credit simple and accessible.
Personalized for each client’s needs
Customize your client portfolios to target specific yields, sectors, and more.
Simple monthly RIA fee structure
A simple annual management fee charged monthly. Fees are automatically deducted from monthly interest received and you have the option to deduct an RIA fee.
Invest with confidence
<1%
Low Loss Rate
The loans that Heron portfolios have exposure to 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.
$100B+
Leading Credit Funds
Heron Finance provides exposure to established funds that manage more than $100 billion in private credit investments. These funds are often only accessible to institutions, but Heron provides access to all accredited investors.
Backed by the best
Your questions, answered
Simple, flat, low fees
No performance fee. Just low, volume based management fee tiers.
7-12% yield after fees.
Choose your target yield based on your risk tolerance.
$5,000 minimum investment.
Easy to get started with a small investment.
No lockups. Request redemptions at ay time
We aim to fulfill requests within one quarter.
What is Heron Finance?
Heron Finance is a digital platform that offers U.S. accredited investors exposure to private credit, which has long been an attractive asset class for institutions and high net-worth individuals (“HNWI”). Heron Finance is expanding access to private credit by building Personalized Private Credit portfolios based on the individual risk profiles and investing objectives of accredited investors.
What are the risks of private credit?
Investing in private loans on Heron, also called “private credit”, provides a more predictable income stream compared to stocks, which can be highly volatile and do not guarantee dividends. This yield is also particularly attractive in a low-interest-rate environment, where traditional bonds may not offer sufficient returns to meet investors’ income goals.
By including Heron Finance in your portfolio, you can achieve a more balanced risk-return profile, with the potential for steadier income and lower overall volatility compared to a portfolio solely composed of stocks and bonds.
While private credit returns are historically higher than traditional fixed-income investments like bonds, and more stable than stocks, they do come with some unique risks, including:
To help mitigate these risks, we implement a comprehensive strategy when creating portfolios for our clients. Read our article to learn more about each risk and our approach to risk mitigation.
By including Heron Finance in your portfolio, you can achieve a more balanced risk-return profile, with the potential for steadier income and lower overall volatility compared to a portfolio solely composed of stocks and bonds.
While private credit returns are historically higher than traditional fixed-income investments like bonds, and more stable than stocks, they do come with some unique risks, including:
- Lack of liquidity
- Hard to value assets
- Lack of transparency
- Deal-structuring complexity
- Servicing risks
- Sector and concentration risk
- Relatively short history
To help mitigate these risks, we implement a comprehensive strategy when creating portfolios for our clients. Read our article to learn more about each risk and our approach to risk mitigation.
What are the recommended allocations for alternative assets?
Private credit is considered an alternative asset class, along with real estate investments, private equity, hedge funds, commodities like gold and silver, infrastructure, collectibles, and digital assets.
The recommended allocation to alternative assets in a financial portfolio can vary depending on your goals, risk tolerance, investment horizon, and overall financial situation.
Factors to Consider:
Example Allocations
To get a sense of the range you might consider allocating to alternatives, 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. Here are some examples:
It’s important to note that these are general guidelines and individual circumstances will vary. Investors should consult with a financial advisor to determine the most appropriate allocation to alternative assets based on their specific financial situation, goals, and risk tolerance.
The recommended allocation to alternative assets in a financial portfolio can vary depending on your goals, risk tolerance, investment horizon, and overall financial situation.
Factors to Consider:
- Risk Tolerance: Investors with a higher risk tolerance may allocate more to alternative assets, while those with lower risk tolerance should allocate less.
- Investment Horizon: Longer investment horizons can justify higher allocations to alternatives, as these assets often require patience to realize their full potential.
- Liquidity Needs: Typically investors with immediate liquidity needs should limit their exposure to illiquid alternative assets. We aim to fulfill redemption requests on a quarterly, best-effort basis and we don’t have a lockup period which is common for other private credit investments.
- Diversification: For many investors, one goal of adding alternative assets is to diversify their portfolio and reduce overall risk. Investors may adjust their allocation to alternatives to complement other asset classes in their portfolio.
Example Allocations
To get a sense of the range you might consider allocating to alternatives, 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. Here are some examples:
- Conservative: 5% to 10% in alternatives.
- Moderate: 10% to 20% in alternatives.
- Aggressive: 20% to 40% in alternatives.
It’s important to note that these are general guidelines and individual circumstances will vary. Investors should consult with a financial advisor to determine the most appropriate allocation to alternative assets based on their specific financial situation, goals, and risk tolerance.
Where is Heron Financed based?
Heron Finance is headquartered in San Francisco, CA.
What happens to my clients’ funds when they invest?
Whether wiring or using ACH, your money will land in a secure, institutional JPM bank account typical of pooled vehicles.
From there, we submit an aggregate purchase order across all our clients to our custodian for the appropriate funds.
Those fund shares are held at our custodian, Inspira. Once shares are available, our backend systems create the custom portfolios from among all available assets, ensuring they meet your clients preferences.
From there, we submit an aggregate purchase order across all our clients to our custodian for the appropriate funds.
Those fund shares are held at our custodian, Inspira. Once shares are available, our backend systems create the custom portfolios from among all available assets, ensuring they meet your clients preferences.
How do I see my clients investments as an RIA investing with Heron? What type of reporting can I expect?
Your clients can see their investments through our web app, if they so choose.
We know you don’t want another login if you can avoid it, so Heron can share reports directly with you about your clients portfolios, and we can also share data with any reporting provider you already work with today (eg. via csv or other format). Simply let us know as part of your onboarding process.
We also are working on an Advisor Dashboard within our app, where you could view and manage client portfolios. If that’s something you’re interested in, let us know.
We know you don’t want another login if you can avoid it, so Heron can share reports directly with you about your clients portfolios, and we can also share data with any reporting provider you already work with today (eg. via csv or other format). Simply let us know as part of your onboarding process.
We also are working on an Advisor Dashboard within our app, where you could view and manage client portfolios. If that’s something you’re interested in, let us know.
Some of my peers have said there’s a lot of bad investments in the private credit space, how do I know you’re picking good funds? How many do you work with and what’s evaluation like?
Heron only works with top-tier private credit managers that have demonstrated an ability to generate consistent cash yields across diverse market conditions.
The managers Heron has vetted are industry keystones, collectively managing $1.5 trillion in private credit AUM.
At a high level, fund managers we work with typically have the following characteristics
To learn more, check out our scorecard page here.
The managers Heron has vetted are industry keystones, collectively managing $1.5 trillion in private credit AUM.
At a high level, fund managers we work with typically have the following characteristics
- Scale (over 1BN in private credit strategy assets) and deal sourcing advantages
- Deep experience across multiple credit cycles with <0.5% annualized credit losses
- Track records of 10+ years in their specific private credit strategy
To learn more, check out our scorecard page here.
Why wouldn’t I go buy one of these funds directly?
If you want real diversification (not just of loans, but also of managers and strategies), then you’ll want to buy many funds. While buying many funds directly is possible, you’ll find it far better to do so through Heron. Rather than signing N sub-docs, getting N tax forms, and hitting N minimum investments for each fund, Heron eliminates these burdens. You sign one set of docs, get one tax form, and we have no minimums (really we’ve already hit the minimums for the funds, since Heron can aggregate among all our clients).
Even before you buy the funds, you’ll want to do diligence on the funds, and Heron helps you with that too. Using our scorecard, you can research the funds, and then we can give you a portfolio from among all the funds you like, customized to hit their yield targets.
Even before you buy the funds, you’ll want to do diligence on the funds, and Heron helps you with that too. Using our scorecard, you can research the funds, and then we can give you a portfolio from among all the funds you like, customized to hit their yield targets.
How long does it take for my client's investment in Heron to be funded once Heron receives the wire?
Once we receive your client’s wire, we will allocate it in the next available buying window of the underlying funds that you want in your portfolio, which is typically monthly. The cutoff is different per fund, but usually around the 20th of the month.
For example, if we receive money on Feb 15th, then we can submit it by the 20th for the February buying window, and your client will start earning March 1st. If we receive it after the 20th, you’d have to wait until the next window, and so they would start earning April 1st.
For example, if we receive money on Feb 15th, then we can submit it by the 20th for the February buying window, and your client will start earning March 1st. If we receive it after the 20th, you’d have to wait until the next window, and so they would start earning April 1st.
Do you support tax advantated accounts like IRAs or 401(k)s?
Yes!
- For IRA’s, Heron has partnered with AltoIRA to make this very easy. If you have an existing IRA or 401(k) account, you can transfer funds for free, or you can deposit cash through Alto. For more information, see our help center article here
- For self directed 401(k)’s or for entities, we can support this and will just need a few documents from you to prove ownership. Please contact support at support@help.heronfinance.com and tell them you want to invest through such an entity.
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). The median private credit manager has 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 lock-up period and liquidity policy?
No lockup period
Unlike most private credit funds, Heron Finance doesn’t require a multi-year lockup. There are no lockup periods, which means clients may request redemption at any time on a quarterly basis. There are also zero penalties or fees for redemption.
Our goal is to process all withdrawal requests within one quarter, subject to available liquidity. It is important to note that we cannot guarantee redemption within the quarter. There may be instances where one of the funds that Heron provides exposure to suspends redemption during a given quarter, delaying a withdrawal. We aim to provide efficient processing of redemption requests, and if we anticipate a delay in fulfilling a request beyond one quarter, we will proactively notify our clients.
Unlike most private credit funds, Heron Finance doesn’t require a multi-year lockup. There are no lockup periods, which means clients may request redemption at any time on a quarterly basis. There are also zero penalties or fees for redemption.
Our goal is to process all withdrawal requests within one quarter, subject to available liquidity. It is important to note that we cannot guarantee redemption within the quarter. There may be instances where one of the funds that Heron provides exposure to suspends redemption during a given quarter, delaying a withdrawal. We aim to provide efficient processing of redemption requests, and if we anticipate a delay in fulfilling a request beyond one quarter, we will proactively notify our clients.
Where are my clients' investments with Heron held?
We partner with the leading alternative investment custodian, Inspira Financial (formerly Millennium Trust Company), which has a 25 year operating history, serving over 8 million clients and over $62BN in assets.
What happens to my client’s investments if Heron goes out of business?
To start, we don’t plan to go out of business! We are backed by large institutional investors, generating revenue, and maintaining an ample runway. As any business should, (and all investment advisors must) we maintain a continuity plan all the same.
In the highly unlikely event that we did wind down the business, your client’s money is still safe. At a high level, here’s what you need to know and how it would wind down:
In the highly unlikely event that we did wind down the business, your client’s money is still safe. At a high level, here’s what you need to know and how it would wind down:
- All LP shares of funds are held in a separate, bankruptcy-remote legal entity from the one that we use to run our day-to-day operations. Second, Heron Finance works with a qualified custodian, Inspira, that custodies said LP shares.
- In the event that Heron Finance’s operating entity were to shut down, we would submit redemption requests to all of the funds.
- Then that separate holding entity and Inspira would work to identify a backup service provider that could manage the redemptions and work to facilitate the return of your capital.
What do my clients own?
You own Heron-issued contingent promissory notes, which provide you with customized exposures to investments portfolios managed by third-party private credit firms.
How does Heron help me customize for my individual clients?
Advisors can tailor client portfolios by identifying the appropriate risk level, and thus target yield, for each client. Heron takes care of the customization behind the scenes using data at the loan level from each fund (taken from their public 10Q filings)
We have a number of different ways of customizing in more detail—from sector to geography. If you have a unique client situation you want help tailoring—reach out!
We have a number of different ways of customizing in more detail—from sector to geography. If you have a unique client situation you want help tailoring—reach out!
How is this different from a fund-of-funds?
Heron is more flexible and customizable at significantly lower cost than a typical fund of funds, while still giving you the other key benefits of the Fund of Funds structure, notably low operational burden and a single tax form.
A fund-of-funds is a one-size-fits-all specific product. Heron is a tech platform and a tool to help you both research funds (through our scorecard), and then automatically manage personalized portfolios to achieve the goals of each one of your clients.
Whereas typical fund-of-funds involve all the administration and expense of setting up and maintaining a dedicated fund, our technology and structuring eliminates the need (and expense) for an actual fund wrapper. As a result, Heron can be well below typical fund of fund fees (plus Heron has no performance fee). We have no relationships with the funds on the platform, and are not incentivized to sell you any particular bundle. We help you do the research, and then make it incredibly easy for your clients to gain the benefits of private credit exposure.
A fund-of-funds is a one-size-fits-all specific product. Heron is a tech platform and a tool to help you both research funds (through our scorecard), and then automatically manage personalized portfolios to achieve the goals of each one of your clients.
Whereas typical fund-of-funds involve all the administration and expense of setting up and maintaining a dedicated fund, our technology and structuring eliminates the need (and expense) for an actual fund wrapper. As a result, Heron can be well below typical fund of fund fees (plus Heron has no performance fee). We have no relationships with the funds on the platform, and are not incentivized to sell you any particular bundle. We help you do the research, and then make it incredibly easy for your clients to gain the benefits of private credit exposure.
How is Heron funded?
We are backed by large institutional investors, generate revenue, and maintain ample runway.
Our investors include Andreesen Horowitz and Kindred Ventures.
Our investors include Andreesen Horowitz and Kindred Ventures.
How is Heron regulated?
We are regulated by the SEC as a Registered Investment Advisor.
How do you protect my clients’ data?
We have rigorous data security standards as both a technology business and SEC registered advisor. Learn more here.
See how you can simplify private credit at your firm.
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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 dividend yield 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 yield 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.
Heron Finance is currently offering promotions for our investors. These promotions are subject to specific terms and conditions, which may change or be discontinued at the company's discretion without prior notice. Participation in any promotional offering does not guarantee future benefits, and eligibility requirements may apply. For full details and the most up-to-date information, please contact us directly at support@help.heronfinance.com
No communication by Heron or any of its affiliates through this website should be construed or is intended to be investment, tax, financial, accounting, or legal advice. Heron Advisory, Inc., d.b.a. Heron Finance 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.
Any financial forecasts or financial returns, whether in the form of dividend yield 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 yield 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.
Heron Finance is currently offering promotions for our investors. These promotions are subject to specific terms and conditions, which may change or be discontinued at the company's discretion without prior notice. Participation in any promotional offering does not guarantee future benefits, and eligibility requirements may apply. For full details and the most up-to-date information, please contact us directly at support@help.heronfinance.com
No communication by Heron or any of its affiliates through this website should be construed or is intended to be investment, tax, financial, accounting, or legal advice. Heron Advisory, Inc., d.b.a. Heron Finance 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.