What's inside:

• LP Reassurance Framework: Deploy bad-news protocols with proactive updates, transparent DSCR stress tests on current holdings, and revised projections with conservative assumptions. Script: "Here's what changed, here's our exposure, here's the mitigation." Builds trust, prevents redemptions, positions for next capital.
• Capital Raising in the Freeze: Shift pitch from growth to preservation with upside. Emphasize senior structures with current pay, conservative leverage, downside protection via DSCR floors. Leverage 506(b) relationships for trusted capital. Offer smaller minimums or phased commitments to lower friction. Operators who raise in downturns own the recovery.
• Deal Selection Under Stress: Tighten filters—1.3x DSCR minimum at current rates plus 150bps stress, locked fixed-rate or capped floaters only, cash-flowing assets over value-add. Use alliances for distressed opportunities with justified basis. Run every deal through 60-minute go/no-go with extra exit scrutiny.
• Deployment Timing and Staging: Stage capital in tranches—30-40% immediate high-conviction, 30-40% six-month reserve, 20-30% dry powder for 12-18 month distress. Protects against falling knives while staying active. Communicate strategy to LPs for commitment retention.
• Competitive Advantage Play: Move with precision while competitors freeze. Use governance for fast closes (days not weeks), leverage alliances for co-investment on larger distressed deals, communicate wins aggressively as case studies. Crisis is your moment to dominate.

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