July 22, 2025

Structuring for Certainty: Chicago Atlantic’s Risk Mitigation Strategies

In this video featuring Partner, Tony Cappell, we walk through how our loan structures are designed to protect against downside risk while maintaining attractive return profiles.

Key features of our approach include:

  • Senior secured positioning
  • Diverse collateral (real estate, cash, receivables, and/or other hard assets)
  • Lender-friendly documentation with tight covenants such as:
    • Minimum liquidity requirements (5–20% of the loan amount)
    • Max leverage ratios
    • Fixed charge coverage tests
    • Monthly covenant testing for increased borrower oversight
  • Loan amortization to reduce leverage over time
  • Validity guarantees to ensure alignment and borrower accountability

Watch the full video below to learn about our disciplined credit approach.

 

 

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