Unlocking Trillion Dollar Opportunities: How Tribal Sovereignty Could Revolutionize Private Credit Markets

By Vince DelaRosa 04/18/2025

Native Digital Art

In 2023, I posed a provocative thesis: What if American Indian tribes could disrupt private credit markets by leveraging their unique sovereign advantages? At the time, it was a theoretical edge—a bold vision of tax-efficient, tribally structured capital vehicles operating in a regulatory and fiscal landscape that traditional financiers could only envy.

Then came the news: Coller Capital’s $2.4 billion private credit secondaries vehicle, engineered with Barings and Ares, proved that structured, tax-advantaged funding models weren’t just viable—they were potentially dominant. Suddenly, my 2023 thesis wasn’t just plausible—it was validated.

Tribes hold a singular competitive trifecta: sovereign immunity, federal capital access, and a 14% tax arbitrage firewall that could outperform conventional private credit models.

Imagine a tribal special-purpose vehicle (SPV) backed by sovereign guarantees, layered with Tribal Credit Initiative funding, and structured to bypass state-level friction—while delivering institutional investor returns amplified by tax shields and federal risk mitigation.

This isn’t hypothetical. The Navajo Nation has already issued bonds for infrastructure; the Native American Venture Fund (NAVF) is monetizing tribal land for carbon credits; and the Bureau of Indian Affairs’ 90% loan guarantees are sitting untapped. The blueprint exists. The capital is waiting. The question is no longer if tribes can architect a similar model to Coller Capital model—but when. and with who. In America, Colliers, Blackrock, and several others could be ideal partners.

American Indian tribes possess a unique combination of sovereign status, tax advantages, and access to federal programs that strategically positions them to replicate and even improve upon structured funding models.

Here's how tribes could architect a similar venture fund:

1. Sovereign Legal and Tax Framework

Tribes can use their sovereign immunity and tax-exempt status to create a competitive edge:

• Credit Enhancement: Like Ares in the Coller deal, tribes could backstop debt offerings or provide guarantees, leveraging sovereign protections to secure favorable terms.

• Tax Efficiency: Tribal-structured vehicles could bypass state/local taxes on transactions, mirroring Coller’s cost-saving innovations.

• Regulatory Agility: Tribal jurisdiction allows for bespoke legal structures, bypassing certain SEC or state-level constraints.

  
  

2. Capital Mobilization Strategies

Tribes can tap into federal programs and sovereign capital markets:

• SSBCI Funding: The $1.5 billion Tribal allocation under the Small Business Credit Initiative (SSBCI) could seed a fund focused on secondary market investments or venture capital.

• Sovereign Debt Issuance: Tribes like the Navajo Nation have issued bonds for infrastructure; similar mechanisms could fund private market vehicles.

• Co-Investment Models: Partnering with institutional investors (e.g., Barings, Ares) as lead lenders, while tribes contribute tax-advantaged capital.

  
  

3. Structural Parallels to Coller’s Model

Coller/Barings/Ares Model	Tribal Adaptation
$2.4B structured funding vehicle	Tribal SPV (Special Purpose Vehicle) with blended SSBCI, sovereign, and private capital
Private equity/credit secondaries	Focus on underserved sectors: tribal land renewables, healthcare, real estate, or gaming assets
KBRA-rated debt	Tribal bonds rated via partnerships with agencies, backed by federal guarantees
Citi as transaction agent	Tribal financial entities (e.g., Native American Bank) as intermediaries

4. Risk Mitigation and Returns

• BIA Loan Guarantees: The Bureau of Indian Affairs’ 90% loan guarantees reduce default risk for reservation-adjacent projects.

• Secondary Market Stability: Tribal funds could target distressed tribal casino or energy assets, offering discounted entry points akin to Coller’s secondaries play.

• Multi-Generational Horizon: Tribal trusts’ long-term focus aligns with private equity’s illiquid asset strategy, attracting patient capital.

  
  

Implementation Roadmap

1. Vehicle Formation: Establish a tribal SPV with SSBCI capital and sovereign debt.

2. Partner Recruitment: Engage institutional lenders (e.g., Barings) for credit enhancement and liquidity.

3. Deal Sourcing: Target secondary stakes in tribal enterprises or non-tribal assets with reservation economic ties.

4. Exit Strategy: Utilize land’s appreciation potential or tribal buyback programs for returns.

   
   

Tribal venture funds could surpass traditional models by combining sovereign protections with innovative capital structures—offering institutional partners tax efficiency, regulatory flexibility, and access to underserved markets. This aligns with broader trends in private markets while advancing tribal economic self-determination, while enhancing cap tables and overall ROI.

Here’s how it happens—and why it will enhance private credit markets:

The financial ecosystem is ripe for disruption, and tribal nations hold the keys to a sovereign-powered financial revolution. While Wall Street navigates regulatory bottlenecks and tax inefficiencies, tribes can deploy a lower-cost, higher-margin model that institutional investors have been craving.

The Final Competitive Edge: Why Tribes Will Help Investors Win More

1. Regulatory Arbitrage – Tribal structures can sidestep costly state-level compliance burdens, accelerating deal flow.

2. Tax-Free Compounding – A 14%+ tax advantage on transactions means higher net returns for investors—something no traditional fund can match.

3. Federal Backstops – With BIA loan guarantees and SSBCI capital, tribal funds can offer lower-risk, higher-yield opportunities than conventional private credit.

4. Wealth Transfer & Impact Capital Magnetism – Tribal ventures and advantages merging within the great wealth transfer align perfectly with massive national and international opportunities. Significant wealth transfers would be enhanced through tribal financial and investing models.

   
   

   $124 Trillion in Wealth will Transfer Through 2048; this pathway could be the most advanced way to engage with said opportunities!

   
   

The Path Forward: From Theory to Dominance

The Coller Capital deal proved the model works. Now, tribes must:

• Launch various SPV or holding companies with blended sovereign and institutional capital.

• Partner with top-tier private credit firms (Ares, Barings, Blackstone) to scale credibility.

• Target secondary stakes in tribal enterprises—casinos, energy projects, real estate, and healthcare—where undervalued assets meet explosive growth.

The Ultimate Vision: A Tribal Private Credit Powerhouse

This isn’t just about replicating Coller—it’s about surpassing it. A tribally structured private credit market could:

• Attract billions in institutional capital seeking tax-advantaged yields.

• Unlock reservation economies through sovereign-syndications backed lending.

• Rewrite the rules of private markets by proving that sovereignty isn’t just a legal shield—it’s the ultimate financial weapon for prosperity.

The pieces are in place. There is capital on the sideline for innovative models like this. The question now is: which capital and tribe moves first?

The next chapter in private credit won’t be written by Wall Street—it will be written by sovereign tribal nations.

If you would like to leverage these unique advantages and achieve superior results, we can help you. To learn more about opportunities, feel free to reach out here.