Opportunity Navigated
Cove Funding is a specialized hedge fund, dedicated to achieving superior risk-adjusted returns, by identifying undervalued opportunities and moving quickly to negotiate and structure transactions with robust downside protections and significant upside.
Firm
Cove Funding is a private investment partnership that pools investment funds from its limited partners. Our goal is to provide access to potentially high-yield investment opportunities, including real estate investments, merchant cash advances, business loans, and securities. Our investment strategy is diverse and includes investments in a wide range of instruments as we aim to provide our limited partners with a well-rounded investment experience, backed by our expert investment management team.
Team
Solomon
Lallouz
Founder / GP
As a founding member of the fund and the Chief Executive Officer of Premium Merchant Funding, Mr. Lallouz plays a pivotal role in our hedge fund's success.
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With an unparalleled track record, Mr. Lallouz has raised billions of dollars in equity and debt investments for companies spanning the globe and diverse industries, including medical, real estate, bio-tech, and finance.
His expertise extends beyond financing, as he actively engages with these companies, serving on various boards and providing valuable guidance for their continued growth.
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In the real estate market, Mr. Lallouz boasts ownership of a diverse portfolio of residential and commercial properties throughout the United States, showcasing his acumen in multiple spheres of the financial landscape.
Elie
Golshan
Founder / GP
As a founding member of the fund, Mr. Golshan is a driving force behind our hedge fund's trajectory.
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Additionally, he holds the esteemed position of Chief Financial Officer at PMF, where he spearheads the financial strategy for the group, overseeing all accounting, budgeting, and cash management activities.
Fondly referred to as the 'Father of PMF,' Mr. Golshan provides invaluable guidance, mentorship, and overall leadership, driving the company's growth and success.
With over two decades of diverse experience in financial leadership, risk management, and trading, Mr. Golshan brings a wealth of expertise to the table.
Residing in Puerto Rico, he passionately engages in philanthropy during his free time, while embracing activities like swimming and playing basketball.
Abe Burger
Head of Fund Allocation
Manager of GP and Investment Manager
As the Manager of the General Partner and the Investment Manager, Mr. Burger takes the lead as the Head of Fund Allocation while also serving as a highly skilled portfolio manager for the Partnership.
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With an impressive background, he has been the Chief Operating Officer of Premium Merchant Funding, an esteemed alternative finance broker and funder, since 2014.
During his tenure at Premium, Abe has showcased his expertise by developing robust underwriting guidelines, successfully implementing risk management policies and procedures to handle a diverse portfolio of alternative finance investments, and skillfully managing a brokerage that provides essential financing to small businesses across the United States.
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Mr. Burger holds a J.D. from the prestigious Fordham Law School in New York. His unique blend of legal and financial acumen positions him as a key driver of success for our hedge fund, ensuring comprehensive and strategic decision-making for our investors.
Robert Herskowitz
Strategic Advisor
In tandem with his real estate engagements, Mr. Herskowitz boasts a nearly forty years in the finance sector. He has played pivotal roles as a founder, investor, principal, and syndicator for multiple ventures.
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With a solid four-decade track record in real estate, Mr. Herskowitz’s involvement has spanned acquisitions, construction, renovations, and sales across New York, New Jersey, Connecticut, and Florida. With roles ranging from investor to principal, operator, and syndicator, he has successfully driven numerous projects.
In parallel, Mr. Herskowitz boasts over 30 years of experience in the financing sector, with roles ranging from sourcing, negotiating, structuring, and funding debt and equity deals.
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Throughout his career, he has been actively engaged in high-value transactions, with a combined total of transactions exceeding $2 billion.
Mr. Herskowitz has a non-controlling interest in the fund, and acts as a strategic investor within the Partnership. His active advisory role to the Investment Manager involves regular consultations, where he contributes his insights to originate, negotiate, advise, and finalize transactions for the Partnership. This dynamic and ongoing contribution adds significantly to the Partnership's success.
Differentiators
Superior Risk-Adjusted Returns
Our core focus on high upside transactions with robust downside protections aims to generate attractive risk-adjusted returns for investors.
Balanced Risk Management
We prioritize stringent risk management practices, thorough research and due diligence, to safeguard investor capital, while retaining a nimble approach for fast funding to capture unique opportunities.
Diverse
Investments
The fund offers a wide range of investment opportunities, including debt syndication, asset-based loans, convertible securities, real estate investments, and others to ensure a well-rounded and diversified portfolio.
Advantages
The Process
1
Identify
Our initial phase involves pinpointing potential investments that align with our fund's criteria. We target opportunities offering substantial upside potential and robust safeguards against downturns.
These opportunities typically encompass small public companies, companies in the process of going public, real estate transactions, and the syndication of merchant cash advances to small businesses.
2
Evaluate
Upon identifying potential investments, the fund initiates a comprehensive due diligence process.
This includes evaluating the strength of the company's management team, analyzing the financials, assessing the market opportunity, and figuring out ways to structure deals for the best possible option for our investments.
A key part of our success is structuring and negotiating in a way that yields fantastic returns
3
Negotiate
After an opportunity is deemed appealing, the fund proceeds to negotiate terms. This generally involves structuring notes with roughly ten percent annual interest rates, an original issue discount (OID) of ten to fifteen percent, and the inclusion of equity kickers for potential upside.
Principal and profit repayment typically falls within a six to twenty-four month term, with additional equity profits or penalties disbursed over one to three years.
4
Monitor
​Once investments have been made, the fund maintains vigilant oversight to ensure their alignment with expectations. This involves establishing a consistent line of communication with management teams, fostering an environment of open dialogue.
Concurrently, an ongoing analysis of financials and market conditions is conducted, enabling the fund to swiftly adapt to any shifts in the investment landscape.
5
Exit
When an investment attains its maximum potential or no longer aligns with the fund's criteria, an established exit strategy comes into play.
This strategy might involve divestment through sales, converting notes into equity, or other suitable actions. This proactive approach optimizes capital deployment and upholds investor interests effectively.
Overall
This investment strategy enables the fund to identify and invest in opportunities with high upside potential while also minimizing downside risk.
By focusing on small public companies, private companies going public, and real estate transactions, as well as funding merchant cash advances to small businesses, the fund can diversify its portfolio and maximize returns.
Investment Types
Track Record
The early years of the Fund’s growth were only to demonstrate a track record, it was only in 2022 that funds were raised, prior to the initial investment in 2017.
Total Return
(With/Without
Performance Allocation)
*Fund did not raise any capital until November 2022
Metrics
