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Red Oak Capital launches first hybrid fund for commercial real estate debt
Fundraising - FEBRUARY 1, 2023

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Red Oak Capital launches first hybrid fund for commercial real estate debt

by Kali Persall

Red Oak Capital Holdings has launched its first hybrid fund for commercial real estate debt — a first-of-its-kind vehicle for the firm.

Red Oak Capital Fund VI, a $75-million Regulation A+, Tier II General Solicitation hybrid offering has been qualified by the SEC and is now open to investors. The evergreen fund is bifurcated into two distinct products, a bond offering and a preferred units offering that will focus on U.S. senior-secured, small-balance sheet real estate debt investments in primary and secondary markets.

“The hybrid structure of the fund is to better suit current investor objectives,” said Raymond Davis, chief strategy officer at Red Oak. “That is, it allows us to take in both qualified and taxable investments while increasing returns for both. And both products will invest in the same high-quality senior-position loans on income-producing commercial real estate that has been the staple of our business.”

Like its predecessor vehicles, R

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