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In the latest episode of Peachtree's Point of View podcast, CEO Greg Friedman sits down with Michael Parise, attorney and Chief Compliance Officer of Copper Beech Financial Group, to discuss one of the most over looked tax-efficient investment strategies available to high-net-worth investors: Private Placement Life Insurance (PPLI).

As Michael aptly puts it, "It's not what you make, it's what you keep." This philosophy drives the conversation as they explore how PPLI can help investors significantly improve their net composite return—the actual return after fees, taxes, and inflation.

Private Placement Life Insurance offers a compelling tax-advantaged structure similar to a Roth IRA but with additional benefits specifically tailored for accredited investors and qualified purchasers. The structure allows investments to grow tax-free, with tax-free withdrawals and loans, plus income-tax-free death benefits to beneficiaries.

What makes PPLI particularly valuable for sophisticated investors is its flexibility with alternative investments. Unlike traditional life insurance products, PPLI allows investments in alternative asset classes such as private credit, private equity, hedge funds, venture capital, and real estate—all within a tax-efficient wrapper.

Key Takeaways:

• Tax-Efficient Growth: PPLI allows alternative investments to grow completely tax-free, with withdrawals available tax-free through basis withdrawals or low-interest loans
• Generational Wealth Planning: When structured properly with irrevocable trusts and younger family members as the insured, PPLI can create decades of tax-advantaged growth and transfer wealth outside your taxable estate
• Investment Focus: Unlike traditional life insurance that maximizes death benefits, PPLI is structured to purchase the minimum required death     benefit while maximizing tax-efficient investment growth
• Minimum Investment: The strategy typically makes sense starting at $2 million     in committed capital, which can be spread over several years
• Investment Considerations: Investors need to be aware of diversification requirements and investor control doctrine limitations, though these are typically manageable with proper planning

For investors currently allocating capital to tax-inefficient investments like private credit or hedge funds, PPLI deserves serious consideration. The simple math is compelling: if your tax savings exceed the roughly 1% annual cost to maintain the structure, you're capturing significant additional returns that would otherwise be lost to taxation.

As Greg Friedman notes in closing, "With all the impact of higher interest rates and inflation, tax efficiency should be a big part of everyone's investment strategy to really have that compounding effect."

Want to learn more about implementing this powerful tax strategy? Listen to the full episode of Peachtree's Point of View podcast on your favorite podcast platform and follow for more insightful investment strategies that can help maximize your portfolio returns.

To reach Michael Parise or Copper Beech Financial Group visit them online at Copper Beech Financial Group.

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^Disclaimer:

^{This material is being provided for informational or educational purposes only, and does not take into account the investment objectives or financial situation of any client or prospective client. The information is not intended as investment advice, and is not a recommendation to buy, sell, or invest in any particular investment or market segment.  Those seeking information regarding their particular investment needs should contact a financial professional.  Copper Beech Financial Group, our employees, or our clients, may or may not be invested in any individual securities or market segments discussed in this material.  The opinions expressed were current as of the date of posting but are subject to change without notice due to market, political, or economic conditions. All investments involve risk, including loss of principal.  Past performance is not a guarantee of future results.}

^{Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC.  Additional advisory services offered through Copper Beech Financial Group,LLC, and SEC registered investment adviser.  Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.} 

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In the latest episode of Peachtree Point of View podcast, CEO Greg Friedman sits down with EVP Jared Schlosser, who specializes in hotel lending and C-PACE financing. Their conversation offers valuable insights into navigating today's dislocated credit markets and finding creative solutions to capitalize commercial real estate projects.

Jared, who joined Peachtree in 2019 after beginning his career during the 2007 market downturn, provides a unique perspective on the dramatic shift in credit markets since then. He explains how developers are struggling with rising costs and persistently high interest rates that make traditional financing structures difficult to pencil.

Senior + CPACE
The discussion centers on how Peachtree is helping clients overcome these challenges, with particular focus on C-PACE (Commercial Property Assessed Clean Energy) financing as an innovative tool. This state-by-state legislative product allows financing for specific elements of construction (roofing, HVAC, elevators, etc.) through long-term fixed-rate loans repaid via property tax assessments.

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What makes this strategy particularly powerful is the ability to combine C-PACE with senior debt to achieve higher leverage at a lower blended cost of capital. For example, on a $100 million project, developers might secure $30 million through C-PACE at 7.5% fixed (half the cost of traditional mezzanine debt), allowing them to finance 75% of project costs at favorable rates while maintaining acceptable returns.

Case Study: Washington Multifamily
Jared shares a recent success story from Washington state where Peachtree provided both senior debt and C-PACE financing, partnering with Hickory for mezzanine debt to deliver an impressive 87% capital stack. With Peachtree providing 70% through the combined senior and C-PACE loans, the borrower secured an attractive blended cost of capital for a higher-lever age construction loan. The multifamily project is located in an underserved secondary market with limited recent development—a focus area for Peachtree.The deal also featured flexible terms allowing the borrower to potentially payoff the C-PACE portion if rates decline.

Key Takeaways:

• C-PACE financing offers developers a powerful tool to replace more expensive capital in the stack, potentially reducing costs by hundreds of basis points compared to traditional mezzanine or preferred equity.
• In today's market, there are "no slam dunks" - every deal has challenges requiring creative solutions, thorough vetting, and proper risk structuring.
• Peachtree's ability to provide both senior loans and C-PACE financing creates a significant competitive advantage, allowing them to deliver financing packages higher up the capital stack.
• Speed and execution are critical in this environment, as many lenders fail to close deals due to improper risk assessment or changing credit committee decisions.
• Secondary markets with limited new supply present attractive investment opportunities, particularly for multifamily development.

Listen to the full Peachtree Point of View podcast to gain deeper insights into how you can leverage these creative capital solutions for your next commercial real estate project. Follow Peachtree Point of View on your favorite podcast platform to stay informed on investment strategies in today's challenging market.

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