Theo Ventures
Pipeline
TV-IRONSHOREActive60Low

Ironshore Capital — KFS · Theo · Middleton JV

Cayman Islands / US·Joint Venture / $10M Lending Facility·KFS Investments · Theo Advisors · Middleton Ventures (JV)
Confidence
82
Set status
Total cost
$10.0M
Target IRR
6.0–6.0%
MOIC
1.30x
Hold
10 yrs

Investment thesis

Exploratory three-party JV (working name: Ironshore Capital) between KFS, Theo, and Middleton. Structure: $250K KFS qualification escrow unlocks a Letter of Credit against a $10M lending facility from 5 Legacy PE, drawn in $2.5M tranches at 6% over a 10-year term. Qualification funds separately repaid by Theo/Middleton at 6%, secured by Cayman beachfront collateral (150 lf, $3M CI appraised). Agreement v2.0 out for legal; targeted signing this week.

Risk register

  • Market
    Cap-rate expansion in exit year
  • Capital
    Floating-rate exposure post-cap
  • Sponsor
    Concentration in single GP relationship

Diligence checklist

6 of 11 items complete
55%
Workstreams cleared
Workstream
Market
0/2
  • Submarket comps, absorption & demand catalysts
    K. Reyes
  • Tourism / employment / migration overlay
    K. Reyes
Workstream
Financial
2/3
  • Underwriting model stress test (±200 bps)
    J. Tan
  • T-12 operating expense & rent-roll verification
    J. Tan
  • Debt term sheet & rate-cap pricing
    M. Okafor
Workstream
Legal
2/2
  • Title, survey & entity formation review
    Goodwin
  • Escrow agent & tranche release mechanics
    Goodwin
Workstream
Physical
0/2
  • Phase I ESA & property condition assessment
    ARUP
  • Construction budget & schedule verification
    ICM
Workstream
Sponsor
2/2
  • Sponsor track record, references & KYC
    C. King
  • GP co-invest, promote & waterfall structure
    C. King
Counterparty diligence
Composite 60 · Low

Do not proceed without independent third-party verification (aggregator, references, counsel).

Updated 2026-07-15
T1
0/ 6
Government / primary source
T2
1/ 6
Independent third-party corroboration
T3
4/ 6
Single self-reported source
T4
1/ 6
Unverifiable / absent
  • A · Weight 20%
    Entity Verification
    3.0/5
    • T3KFS, Theo, Middleton entities verified; 5 Legacy PE (Atlanta) requires independent formation & good-standing pull before PoF reliance.
  • B · Weight 20%
    Principal Background
    3.0/5
    • T3KFS/Theo/Middleton principals known; 5 Legacy principals and physical office not yet independently corroborated.
  • C · Weight 15%
    Regulatory Standing
    2.0/5
    • T45 Legacy lender/adviser registration status not yet confirmed on IAPD/NMLS — condition precedent before escrow release.
  • D · Weight 15%
    Litigation & Enforcement
    4.0/5
    • T2Clean PACER on KFS/Theo/Middleton; 5 Legacy litigation & enforcement sweep pending.
  • E · Weight 20%
    Track Record / Funding Mechanism
    3.0/5
    • T3Middleton represents prior 5 Legacy transactions; completed-deal references outstanding per §7.3.
  • F · Weight 10%
    Public Footprint Coherence
    3.0/5
    • T3Cayman collateral basis ($650K purchase vs $3M CI appraisal) needs independent appraisal & title.