Sleeve cap

Sleeve cap — a hard, pre-written ceiling on an asset class’s share of the portfolio, the allocator’s cousin of 2.5’s speculative-sleeve limit. Private lending’s cap is 10–15% even done perfectly: notes are chunky, there is no secondary market, collection is unpaid work until priced, and deal flow peaks exactly when collateral is most fragile (banks tighten → borrowers arrive → values wobble). The cap is a 2.8-style pre-commitment against yield-chasing at the top, enforced at the quarterly review where the sleeve’s percentage is a dashboard row.

First used in: 4.5 · Private lending: being the bank