7.9
Invest
Bridgewater Bridge Loan
Evaluated by Morgan Hale · September 14, 2026
Analytical 7.94/10
Gut feel 7.66/10
📊 Deal metrics
Loan / Facility Amount
$9,000,000
Collateral Value (Appraised)
$16,000,000
Loan-to-Value (LTV)
56%
Loan-to-Cost (LTC)
65%
Debt Ahead of Us (Attachment)
$0
Debt Service Coverage Ratio
1.1x
Debt Yield
9.2%
Borrower Total Debt / EBITDA
3.8x
Contract Interest Rate
11.5%
Origination Fee / OID
1.5%
Exit / Prepayment Fee
0.5%
Equity Kicker / Warrant Coverage
0%
All-In Yield
12.8%
Projected IRR
12.9%
Projected MOIC
1.19x
Loan Term (Years)
1.5 yr
Interest-Only Period (Months)
18
Section breakdown
8
Borrower / operating company track record
Depends on the anchor tenant renewing.
8
Credit and repayment history
8
Sponsor / guarantor financial strength
8
Integrity, transparency, and quality of disclosure
Third-party report pending.
7
Skin in the game — real equity beneath our position
7
Management depth and operating capability
8
Reference checks with prior lenders, partners, and counsel
Depends on the anchor tenant renewing.
9
Durability of the borrower's underlying business
7
Quality and marketability of the collateral
6
Loan-to-value / advance rate cushion
Consistent with the T-12.
9
Independence and credibility of the valuation
10
Lien position and priority
9
Perfection and enforceability of the security interest
Supported by the data room; see folder 3.
6
Guarantees — personal, corporate, completion, bad-boy carve-outs
7
Ongoing collateral monitoring and reporting
8
Insurance and physical protection of the collateral
Supported by the data room; see folder 3.
7
Collateral concentration and diversification
10
Debt service coverage (DSCR / interest coverage)
10
Source of repayment at maturity (the take-out)
Benchmarked against two comparable deals we closed.
7
Stability and predictability of the cash flow
8
Quality and verifiability of historical financials
6
Credibility of the borrower's projections
Third-party report pending.
9
Total leverage and everything else in the capital stack
9
Liquidity and working capital headroom
10
Sensitivity of coverage to stress
Third-party report pending.
8
Financial covenants and how they are tested
8
Cash control — lockbox, sweeps, reserves, escrows
9
Default triggers and remedies
Better than the deck suggests.
6
Reporting requirements and information rights
6
Amortization / interest-only profile and term fit
6
Use of proceeds — is our money funding the right thing
Consistent with the T-12.
8
Equity kicker / warrant / preferred participation terms
7
Prepayment and call protection
10
Recovery in a realistic default scenario
Third-party report pending.
9
Workout and enforcement path — and its timeline
10
Refinance and take-out risk at maturity
10
Stress test — how far can value fall before we lose principal
Consistent with the T-12.
6
Our ability and willingness to own the collateral
6
Extension options and structural flexibility
10
Legal environment for enforcement in this jurisdiction
Management's number, not yet verified.
6
Yield versus the risk actually taken
7
All-in return including fees, OID, and any equity kicker
9
Relative value vs. comparable credit opportunities
Our own estimate; sponsor disagrees.
10
Rate structure — fixed vs. floating, floors and caps
7
Fee load and expense reimbursement
6
Duration and liquidity fit for us
Better than the deck suggests.
7
Loan documentation quality
6
Intercreditor / subordination terms
6
Borrower entity structure and bankruptcy remoteness
Benchmarked against two comparable deals we closed.
6
Tax treatment of the interest and any equity participation
8
Lending licensing, usury, and regulatory compliance
9
Interest-rate and refinancing-market risk
Management's number, not yet verified.
9
Industry / asset-market risk affecting the borrower
10
Fraud and misappropriation risk
9
Concentration — total exposure to this borrower/sponsor across our book
Better than the deck suggests.
9
Regulatory and legal-change risk
6
Servicing and administration risk
6
Environmental and ESG exposure through the collateral
Supported by the data room; see folder 3.
9
Overall excitement about this deal
9
Trust in the people across the table
7
Would this be your only investment this year?
Benchmarked against two comparable deals we closed.
7
Portfolio fit and strategic alignment
8
LP/partner explainability
8
Too-good-to-be-true meter
Better than the deck suggests.
6
Timing and urgency — is the window right?
7
Differentiation vs. other opportunities
9
Sleep-at-night factor
Confirmed on the call with the sponsor.
6
Regret minimization — would you regret passing?
7
Information quality — do you know enough?
Full analysis
DEAL EVALUATION ANALYSIS: Bridgewater Bridge Loan Type: Credit | Overall Score: 7.91/10 | Recommendation: Invest ====================================================================== KEY METRICS: Cr Loan Amount: 9,000,000 Cr Collateral Value: 16,000,000 Cr Ltv: 56 Cr Ltc: 65 Cr Attachment: 0 Cr Dscr: 1.1 Cr Debt Yield: 9.2 Cr Borrower Leverage: 3.8 Cr Coupon: 11.5 Cr Origination Fee: 1.5 Cr Exit Fee: 0.5 Cr Equity Kicker: 0 Cr All In Yield: 12.8 Cr Projected Irr: 12.9 Cr Moic: 1.19 Cr Term: 1.5 Cr Io Months: 18 KEY STRENGTHS: + Downside, Recovery & Exit: 9.1/10 + Risk Assessment: 8.58/10 + Repayment Capacity & Cash Flow: 8.52/10 + Borrower & Sponsor Quality: 7.86/10 + Collateral & Security: 7.74/10 MODERATE AREAS: ~ Pricing & Risk-Adjusted Return: 7.42/10 ~ Structure, Covenants & Controls: 7.34/10 ~ Legal, Documentation & Tax: 6.56/10 GUT FEELING SCORE: 7.66/10 ====================================================================== SUMMARY: This deal shows strong fundamentals with minor areas of concern. Recommended to proceed with investment, addressing the noted weaknesses in diligence.
Evaluator notes
Second read before IC.