Investment Opportunity · Private Credit
306 Kings Highway.
An outpatient mental health clinic in Cherry Hill, New Jersey. Eppler Capital Funds is raising $650,000 to open a day-treatment clinic that treats people during the day and sends them home at night: no beds, no overnight stays.
Investors receive an 8% annual preferred return paid monthly for four years, their original investment back in month 24, and an exit bonus when the clinic is sold. On the base case, that is 20.9% a year.
The Investor’s Terms
8% a year, capital back in year two, a bonus at the sale.
A $100,000 investment pays $8,000 a year for four years, returns the $100,000 in full in month 24, and adds an exit bonus when the clinic is sold in year four. The minimum investment is $50,000.
Benefits & Returns
What investors receive.
Three things every investor receives: 8% a year for four years, the investment back in month 24, and a share of the sale. Only the year-four exit bonus moves with the price the clinic fetches.
A Preferred Return
8% a year, paid every month for all four years, on the original amount. That is $8,000 a year on every $100,000, or $666.67 a month. It keeps running after the capital is returned.
Capital Back in Month 24
The full investment is returned in one payment at the end of year two. The preferred return and the return of capital do not depend on the sale price of the clinic.
An Exit Bonus
A share of what Eppler Capital Funds receives when the clinic is sold in year four. Per $100,000: $18,036 if it sells at 3x year-four profit, $24,048 at 4x, $30,060 at 5x, an annual return of 19.4%, 20.9% and 22.4%.
Money Lent Ahead of the Owners
The money lent into the clinic sits ahead of everything except unpaid suppliers, and the clinic must repay it in full out of its own cash before the owners are allowed to take a single dollar of profit out.
The Business
Three levels of care, three very different prices.
Outpatient
A normal therapy appointment
One session a week, 45 to 60 minutes, for people who are stable. $420 per patient, per month. No licence needed; opens in month 2.
Intensive Outpatient
A structured group program
Three hours a day, three days a week. Patients keep working or studying around it. $9,750 per patient, per month. Licence needed; opens in month 4.
Partial Hospitalisation
A full clinical day, without a bed
Five to six hours a day, five days a week: the most intensive care possible without admitting someone. $21,700 per patient, per month. Licence needed; opens in month 5.
About 86% of the clinic’s income in year four comes from the middle and right-hand programs. The plan assumes about 27 patients a day, in a building that holds 35. Insurance pays per patient, per day, and the clinic is profitable in its first year, from month 7.
The Building
A single story office, already fit for the job.
Bought and owned by one of the three partners, then leased to the clinic at documented market rent. It needs paint, carpet, signage and furniture, nothing structural, so the fit out budget stays at $75,000 instead of the several hundred thousand a gut renovation would cost.
Eppler is already in the building: a $400,000 secured position on 306 Kings Highway, behind the bank and separate from the clinic loan.
How to Take Part
What is needed, and by when.
$50,000
Minimum investment
The smallest amount accepted. Larger amounts scale straight up, so every figure on this page multiplies proportionally.
End of November
The first $250,000
Goes straight into the project on that date, funding the licence application and the first hires. None of it sits waiting.
End of February
The next $400,000
The rest of the raise, funding the ramp as the two day programs open. The clinic owner and his partner put in $250,000 of their own at closing for 60% of the business.
What to Watch
Three things to keep an eye on.
The Insurance Rates
The plan rests on insurers paying about $1,000 and $750 per patient day, about 15% less than a clinic nearby collects today. If they only paid the published floor rates, year-four profit would be $562,405 instead of $2,930,818.
What Covers It
The loan into the clinic is repaid first, out of cash, before any owner takes profit. It is the equity that would suffer.
The Licence Has No Fixed Clock
New Jersey sets no legal deadline for approving the licence, and the plan takes a consultant’s 90 day estimate at his word. Every month late costs roughly $65,000 to $75,000 of extra cash.
What Covers It
It shows up month by month, and the third drawdown is optional. Nobody is obliged to fund a slipping plan.
A Small Ownership Team
The clinic is run by an operator and his business partner, who together hold 60%. This is the first facility he will own and run himself, so the step up is in ownership, not clinical experience.
What Covers It
The deal buys him a mentor who runs his own clinic in the same market, plus that referral network. The operating agreement is being written with information rights and budget approval built in.
The bad case, rates cut by a third, only 70% of the expected patients, and the licence seven months late, is not a loss. It is a clinic earning about $1.1 million a year by year four, worth roughly $4.3 million, in which the loan into the clinic is repaid in full with interest. It does need more cash than the committed $650,000, and raising that is the operator’s obligation.
Begin the Conversation
Book a confidential consultation, or reach Craig directly.
Craig Eppler, Founder and CEO · [email protected] · 610-300-3316
Available to accredited investors only.
Figures come from a four-year operating model built for this deal. They are estimates for planning, not a projection of results or a guarantee, and a preferred return depends on the deal producing cash. Nothing here is legal, tax or investment advice.