Paragon's Chief Investment Officer (CIO) has a long track record of designing portfolios for ultra-wealthy clients that aim to meet or exceed the annual returns of the equivalent public benchmark with statistically less volatility and risk.
Paragon and its partners spend hundreds of hours researching and performing due diligence on restricted funds to establish high conviction in select private debt funds, like the one shown above. Private debt has historically outperformed public debt by +4.8% annually over the last 15 years (Cliffwater CLDI 2004-2019), and we strive to improve upon that with our manager selection.
This Paragon preferred fund is targeting returns of 7-10% annually, and has returned 30% in its first 3 years since inception, for an annualized return of 9.2%. In addition to attractive returns, it doesn't draw down like a typical high-yield fund. In March 2020, when public high-yield funds were down 22% (BBG HY), our preferred fund was only down 1.8%. That's an additional 20% of your money.
Some of our preferred private debt funds are restricted to ultra-wealthy clients, and would normally require a $1.0M minimum investment, putting it out of reach for many individual investors.
At Paragon, we have partnered with key funds to provide access and minimum investments are waived because we pool your capital with our other clients to meet fund minimums. So you can responsibly invest $100k-$500k in our private debt funds and enjoy 7-10% expected returns with reduced volatility (relative to public credit).
Compare the performance of an investment portfolio, with and without private investments:
*As of 09/30/2020.
** +1% Portfolio return assumes a 4.1% outperformance within a 25% portfolio allocation to private debt, instead of public debt (+4.1% * 25% = +1.025% at portfolio level).
***0.25% lower mutual fund fees (expense ratios) on actively managed mutual funds (institutional share class vs retail share class).
1. Return Assumptions & Disclosures for Paragon Investing.
2. Private Debt Illiquidity Yield Premium: Disclosures & Assumptions.
3. From 1926 to 2018, the tax-loss-harvesting strategy delivered an average annual alpha of 1.08% over and above a passive buy-and-hold portfolio.
4. Paragon's lowest published advisor fee of 0.45% is 55% lower than the industry-average retail advisor fee of 1.00% (as of 2018):
PriceMetrix by McKinsey: State of Retail Wealth Management, 8th Annual Report, 2018
All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. Please see our Full Disclosure for important details.