Our Approach

We provide value to multiple parties including developers, municipalities, banks, and real estate investors. While TIF is a powerful tool for growing communities, there are very few experts that understand tax increment financing as well as Hageman Capital. Historically, to access the capital, developers and municipalities had to aggregate multiple capital sources for a single project. Hageman Capital was formed to offer more than just direct financing for single-site developer-backed TIF. We care deeply about community and understand how TIF monetization helps enrich projects. Our approach to TIF monetization maximizes proceeds for the project and reduces the risk for all parties involved.

Developers

Hageman Capital works in collaboration with developers to purchase their Developer Backed Bonds. Our approach converts TIF bond public incentive to 100% equity at construction loan closing. Hageman Capital’s investment process maximizes proceeds compared to alternative financing mechanisms. Many unrated bond transactions are harder to finance than traditional capital structures, Hageman Capital purchases developer backed bonds. By selling TIF bonds prior to completion of construction, financing and interest rate risk shifts away from developers so developers can focus on building a successful project.

Municipalities

Cities and towns can incentivize more projects without risking their own credit rating by guaranteeing bonds. Hageman Capital works with developers to maximize community investment by providing capital on behalf of the municipality. Our structure works in conjunction with developers and municipalities to issue the security directly to our group.

Banks

Hageman Capital reduces construction lender’s risk by reducing loan sizes and increasing project equity at closing. Unlike investment grade bonds, single-site tax increment financing bonds has historically been illiquid. Our experience in real estate development and capital markets have created a structure wherein Hageman Capital understands the risks of single-site, developer-backed bonds in the market. Banks and other financial institutions benefits from Hageman Capital because we have designed mechanisms to bridge the gap between debt and equity.

Real Estate Investors

Hageman Capital’s structure increases returns to equity for investors by requiring no capital to purchase or finance the TIF bond. The bond is sold at a “lower cost of capital” than typical equity returns, creating accretive value for the real estate investor.

Rate Lock

Current volatility in interest rates has created uncertainty among real estate projects across the country. Hageman Capital developed a solution to lock in interest rates on TIF Bonds. By locking in the interest rate, developers can achieve certainty of bond proceeds prior to closing.