Tourmalet Advisors, LP

Tourmalet Advisors, L.P. provides discretionary investment management primarily to closed-ended private investment funds and to select institutional separately managed accounts (SMAs). Its investment programs focus on direct and indirect positions in pools of performing and non-performing residential mortgages, real estate owned properties and related instruments, with investments often made through holding companies for which an affiliate serves as servicer.

The firm’s approach centers on generating interest income and capital appreciation by acquiring mortgage loans and actively managing workouts, foreclosures or asset dispositions, and it may employ leverage and financing techniques—such as repurchase agreements and other borrowings—with clients bearing related interest and financing costs. Tourmalet structures opportunities to include co-investments and side letters that can alter fees, reporting or other rights for particular limited partners, and tailors SMA mandates on a case-by-case basis.

Compared with many peers, Tourmalet has a close operating relationship with an affiliated mortgage servicer, GITSIT Solutions, LLC, which both services Fund assets and provides mortgage services to third parties, a dynamic the brochure identifies as a potential source of allocation and conflict considerations. The firm also emphasizes performance-based compensation and arrangements that may result in some clients not paying traditional percentage-of-AUM management fees, along with the routine use of borrowing in client accounts—features that are less common among investment managers in its category.