Fund Partner: Covenant VC
www.covenantvc.com
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www.covenantvc.com
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Chateau has partnered with Covenant Venture Capital () to bring yields to chUSD. Chateau maintains an exclusive partnership with Covenant, leveraging their outstanding track record across multiple asset classes to power our DeFi products. In particular, Covenant VC Credit Income Opportunities Fund has consistently delivered 2.3 Sharpe returns that beat the market.
Covenant Venture Capital is a Manhattan based hedge fund that specializes in Private Credit, and Late Stage Venture investing. The fund is lead by an executive team with industry leading experience at firms such as JP Morgan, Saloman Brothers, Meryll Lynch, and other major financial institutions. They are a Qualified Venture Firm with NJEDA (New Jersey Economic Development Agency). Executive Team Karl Douglas leads investment strategy at Covenant Venture Capital, Manager of Insight Family Office, and Strategic Advisor to the BAJ Accelerator.
With his 35 years of Wall Street dealmaking experience, Karl provides valuable insights and guidance to the founders. Since 2000, Karl has advised over $2 billion of transactions including rated structured transactions, restructurings, private equity, acquisitions and mergers. With such extensive finance industry experience, Karl has global reach into the boardrooms of many of the world's most influential banks, private investment firms, VCs, and corporations
Dr. Armen Kherlopian is a world-class strategy, innovation, and business leader as demonstrated by repeatedly driving new venture growth via gaining value from data. Moreover, his industry experience is cross-sector including Global Fortune 100 Companies as well as government organizations such as the DA and NASA. He completed his M.S. and B.S. in Biomedical Engineering with a focus on Algorithms at Columbia University. He holds a Ph.D. in Biophysics with a focus on Machine Learning from Cornell University and completed a fellowship in High-Performance. Computing and Artificial Intelligence at Princeton University.
The Covenant team is part of a 500M loan syndicate that has delivered exceptional deal flow and returns, ranging from 18.65% during Covid 19 pandemic lows, to 21.7% between 2011 to 2022. The fund's performance has improved considerably since interest rates began rising. 2023 and 2024 delivered exceptional returns of 35% and 55.45% APY respectively, while maintaining a sharpe ration above 2.
Covenant employs comprehensive risk management strategies that deliver high sharpe returns
Maximum Concentration: No loan can be more than 10% of the fund or 1% of a side account. Each portfolio is comprised of a minimum of 50 loans participations.
Security UCC 1 filings on all company cash flow, accounts receivable, and unencumbered assets.
Personal guarantees 80% of loans are backed by personal guarantees of the owner. Guarantors must have minimum 650 credit score.
Minority participant: Covenant never invests more than 20% of the principal of a loan.
Our portfolios are sector agnostic, with a preference for high-margin areas such as:
SaaS Software: Focus on sector leaders in AdTech and Process Automation.
Financial Services: Investing in financial and insurance agencies.
Transportation: Emphasis on electric vehicles (EVs), components, and autonomous technology.
Electrification: Supporting the new grid and Internet of Things (IoT).
Healthcare: Specializing in medical billing and insurance reimbursement
