Issue No. 23

On April 12, Pier hit its 8th anniversary. That week, an employee forwarded me an email from a CEO we’re in diligence with for a credit facility:

“Thank you once again for organizing the reference calls. I also did some backchannel calls and wanted to let you know that the feedback about Pier has been outstanding! Best reviews by a large margin. I often joke that ‘nobody loves their lenders,’ but you’ve certainly proven me wrong!”

This gave me pause and got me thinking about our employees and how they fly the Pier flag as well as I could have hoped. I love working with our team and it looks like the ecosystem does too. When Conor and I started Pier in 2017, we wanted to build a finance company people actually liked working with—one that felt human and reliable. We’ve had our off days, but this email suggests we’re doing something right for at least one person.

I think back to a conversation with my father in the fall of 2016, when Conor & I were considering starting Pier. He challenged me to articulate what part of my day-to-day would make me happiest. I told him I wanted to be intellectually challenged and work with a team of people smarter than me who are really good, honest people. Looking around the office today, that’s exactly what I see. I’m grateful for another year of Pier. Here’s to 8 more!

- Jillian

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Investing through recessions, volatility, and uncertainty should not mean trying to be smarter than the next person. Just don't be stupid.

I used to trade equities for a hedge fund. One of the quick lessons you learn is "don't catch a falling knife".

Instead, follow tried and true strategies for weathering a storm.

• Diversify
• Stay liquid
• Reduce leverage

At Pier, we focus on these components constantly, both within our asset class and in general.We maintain diversification across originator, servicers, underlying asset type, duration, credit quality (yes, we want both prime and non-prime credit going into a period of uncertainty), geography, loan size, etc.We focus on purchasing and financing assets that self liquidate. We don't need to sell assets to create liquidity. We do not have back leverage on our positions, and we are hypersensitive to our advance rates and LTV ratios.How are you allocating your portfolio?  Join the discussion on LinkedIn.

- Conor

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