Navigating Private Lending in Your IRA: Best Practices and Success Stories from Nate Larsen

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Welcome back to another episode of the IRA Cafe podcast! Host Kyle Moody sits down with Nate Larsen, CIO of the Mid-Atlantic Fund and founder of Credo Capital Management, for an insightful exploration into private lending and its intersection with self-directed IRAs.

In this episode, Nate shares his extensive background as an economist and banker and explains how the Mid-Atlantic Fund was born from a desire to create a more efficient, personable, and flexible lending environment, blending local bank sensibility with institutional resources and technology.

You’ll get a look at the evolution of the Mid-Atlantic Fund, its operational model, and how it offers investors diversification and protection, particularly for those using self-directed IRAs. The conversation covers the fund’s SEC registration, its conservative risk management practices, and the crucial role of collateral, character, credit, and capacity—the four C’s—in their lending philosophy. Nate breaks down how Credo Capital Management works behind the scenes as an asset manager, while Mid-Atlantic Fund remains the investor-facing brand, ensuring a seamless and transparent experience. Whether you’re new to private lending or a seasoned investor considering self-directed IRAs, this episode delivers practical insight and strategic advice.

Key takeaways:

1. Mid-Atlantic Fund’s Approach: The fund operates as a SEC-registered private credit fund, focusing on debt-backed assets rather than equity, providing monthly income to investors and offering built-in diversification across a portfolio of real estate-backed loans.
2. Local Expertise and Market Focus: Most assets are concentrated in the Mid-Atlantic region, especially metro Atlanta, leveraging deep knowledge of local markets for efficient risk management and strong investment prospects.
3. Conservative Risk Management: The fund maintains a strict collateral policy, lending at approximately 65% of asset value, with tangible assets backing every loan. Additional safeguards—such as life insurance policies, redundancy protocols, and backup servicing—further protect investors.
4. Flexible and Efficient Lending: Nate emphasizes the advantages of private lending over traditional banks, highlighting efficiency, flexibility, and responsiveness to local opportunities, making it an appealing choice for self-directed IRA investors.
5. The Four C’s of Lending: Collateral, character, credit, and capacity form the foundation of the fund’s lending decisions, with stringent borrower selection and relationship-driven business practices resulting in a track record of over 500 transactions with no losses and 195 consecutive monthly distributions.

Tune in to discover how private lending through a self-directed IRA can provide both financial security and diversified growth, and learn why Mid-Atlantic Fund stands out as a trusted, relationship-focused partner in the investment landscape.