JMP Asset Management LLC operates private equity funds that leverage the investment expertise and industry relationships resident at JMP Group to capitalize on current industry dynamics. We currently manage two fund strategies: one that invests in real estate and real estate-related enterprises and another that provides credit to small and midsized private companies that are often overlooked by regulated financial institutions and larger fund managers.
Our five senior investment professionals have more than 150 years of combined industry experience. They share a successful history of sourcing and structuring transactions, performing due diligence and credit analysis, and engaging in disciplined portfolio management. In managing our funds, we seek to generate attractive risk-adjusted returns, either by adding value and repositioning the assets we acquire or by identifying unique opportunities in underserved markets.
Our real estate strategy pursues investments alongside best-in-class real estate operators nationwide. We attempt to drive returns through re-leasing, repositioning or redeveloping the assets we acquire, capitalizing on changes in geographic, property sector and market dynamics. Forming alliances with established local, regional and national real estate operators, we primarily make general partner co-investments, thus earning a portion of the general partner cash flow stream and promote. We will also make non-control investments as a limited partner if expected returns meet our objectives.
Our credit strategy aims to generate equity-like returns within a debt structure that can serve to reduce our overall risk exposure. Our attention is primarily focused on lower middle-market corporate borrowers, defined as companies with EBITDA between $1 million and $15 million, and on businesses that have a “reason for being” and a strong management team. Our investments may include an equity component, such as warrants to purchase common stock in a borrower, with the goal of enhancing expected returns. We believe that our focus on relatively small companies, which generally have limited access to institutional capital, enables us to identify and profit from favorable risk-adjusted investment opportunities under ordinary conditions, while also putting us in a position to act on even more attractive opportunities during periods of economic stress or market volatility.