Red Oak Capital Fund VI, LLC, a $75 million general solicitation under Regulation A+, Level II The hybrid offering sponsored by Red Oak Capital Holdings, based in Grand Rapids, Michigan, has been qualified by the SEC and is open to investors. The fund is split into two distinct products, a bond offering and a preferred unit offering, which will focus on investing in senior and small-balance sheet US real estate debt in the primary and secondary markets.
This is a one of a kind vehicle for Red Oak. “Banking regulations and market developments have limited borrowers’ access to traditional sources of capital,” said Red Oak CEO Gary Bechtel. “This, combined with high levels of fragmentation and operational inefficiencies in the low balance bridge loan business, presents a significant opportunity for our investment strategy.”
As with previous vehicles, Red Oak will primarily use the proceeds of Fund VI to originate and make short-term senior loans and acquire further investments in senior real estate secured debt securities backed by real estate generating assets. income.