Stratus Financial: Fund Overview
Stratus Financial is a private credit fund focused on financing aspiring commercial pilots through student loans. Over the past five years, the fund has built a reputation for disciplined underwriting, consistent performance, and a commitment to transparency.
By partnering with FAA-approved flight schools and requiring co-signers for over 88 percent of loans, Stratus has created a portfolio designed to balance opportunity with attention to risk management. The fund operates on an evergreen structure, allowing continuous capital deployment. Investors benefit from monthly income distributions or the option to compound for long-term growth.
As the aviation industry faces a global pilot shortage, Stratus is uniquely positioned to support student success while delivering attractive, risk-adjusted returns.
Stratus IR Roundtable: Your Questions Answered
While the loans are unsecured, over 88 percent of borrowers have co-signers, typically parents or guardians. This adds a second layer of repayment support. Stratus also applies a strict underwriting process that evaluates credit score, current assets, and income to ensure borrower reliability.
Yes, investors can choose to compound their returns, which may increase overall yield over time. This election can be chosen at any point during the investment.
Stratus initiates a structured recovery process that includes contacting the co-signer, working with loan servicing partners, and negotiating repayment plans. Legal action is a last resort. Defaults remain low due to the fund’s underwriting discipline and co-borrower structure.
Yes, non-U.S. investors are eligible to participate, subject to additional KYC requirements and approval.
Stratus issues annual K-1s. Investors are encouraged to consult a tax advisor, especially when investing through IRAs or self-directed vehicles.
The fund has a 24-month lock-up period, followed by a 90-day redemption notice. While early redemptions are discouraged, special cases such as hardship are reviewed individually.
Borrowers are aspiring commercial pilots attending FAA-approved flight schools. Most have co-signers, stable income trajectories, and clear career paths. Stratus evaluates both financial background and future earning potential.
Returns are generated from interest payments on student loans. Income is earned monthly and distributed or compounded based on investor preference.
Stratus loans are private and not government-issued, so they are not impacted by federal student loan forgiveness programs. Borrowers are contractually obligated to repay.
Yes, Stratus works directly with RIAs and Family Offices to create side letters that allow for custom terms, including pooled investments, modified lock-up periods, and bespoke reporting.
Key risks include borrower default and changes in the aviation industry. These are mitigated through rigorous underwriting, strong borrower support programs, and diversification across flight schools and student profiles.
Stratus incorporates principles of risk management, diversification, and liquidity planning, which guide the fund’s structure and support sustainable long-term growth.
The aviation industry is expected to grow significantly due to rising global travel demand and a pilot shortage. Private student loans help bridge the funding gap, ensuring a steady pipeline of trained professionals.
The collections process includes proactive outreach to borrowers, customized repayment plans, and, if necessary, legal recovery actions. The goal is to find sustainable solutions while protecting investor capital.
Yes, Stratus is actively exploring opportunities in other high-demand, skills-based education sectors to diversify and strengthen portfolio resilience.
Many competitors faced challenges with underwriting consistency, securing long-term capital, or navigating regulatory complexities. Stratus has remained strong by prioritizing disciplined lending, investor relationships, and sustainable growth.
Still Have Questions? Let’s Talk
We’re here to help. Contact our Head of Investor Relations, Eljona Shkreli, to schedule a one-on-one call or get your questions answered. Email: eljona@stratus.finance | Phone: 949-817-7179