Overview
Theorem Partners LLC (“Theorem” or the “Firm”) is a Delaware limited liability company that
has been in business since October 2013. The Firm serves as the investment adviser and, for
certain vehicles, General Partner of investment limited partnerships, manages a single-investor
fund and an internal employee investment vehicle, herein all are referred to as the “Funds.”
Theorem is wholly owned by Theorem Technology, Inc. (“Theorem Tech”). The only controlling
owner with beneficial ownership of 25% or more of Theorem Tech is Hugh Edmundson who
serves as the Chairman and Chief Investment Officer of Theorem. As of December 31, 2023,
Theorem had total discretionary regulatory assets under management of approximately $2.02
billion. Theorem only manages assets on a discretionary basis.
Theorem invests principally, but not solely, in trust certificates, notes and other instruments that
derive their value from loans made to borrowers through online lending platforms. Theorem also
invests in notes and equity securities of securitization structures consisting of similar assets.
Theorem is authorized, however, to enter into any type of investment transaction that it deems
appropriate under the terms of the client’s partnership or other account agreement.
Investors in the
Funds have no opportunity to select or evaluate any Fund investments or
strategies. Theorem selects all Fund investments and strategies.
Theorem does not participate in wrap fee programs.
Other Business
In addition to our advisory business, Theorem provides other services to customers or clients.
Theorem integrates with certain platforms through what is referred to as a Custom Loan Integration
Partnership (“CLIP”).In a CLIP program, Theorem licenses its underwriting model to the
platform and the originator for use in assessing the creditworthiness of the loan and establishing the
appropriate interest rate based on the expected risk. The Funds typically purchase loans that
conform to the parameters of the CLIP program, but platforms are not required to sell, nor are the
Funds required to buy, loans generated through the use of the CLIP model.
Securitization as a Service (“SAS”) is a service offered by Theorem to customers (not advisory
clients) where Theorem buys and sells loans with a mark-up to public or private securitization
vehicles. Theorem will only buy or sell what is requested by the customer and provides no
investment advisory service to SAS customers.
Theorem also assesses and monitors securitizations sponsored by advisory clients.