Directed Capital Raises $92M for Distressed Mortgage Debt Fund
The firm will seek to acquire more than $500 million in commercial mortgage loans, then work to resolve the assets.
Directed Capital, an opportunistic real estate finance firm that acquires and repositions commercial mortgage loans and is based in St. Petersburg, FL, has closed its tenth flagship fund, raising $92 million in equity commitments that will be deployed to purchase commercial real estate debt.
The firm will seek to acquire more than $500 million in commercial mortgage loans, then work to resolve the assets.
Directed Capital recently closed on a $40 million credit facility from Pacific Western Bank and previously received a combined $60 million in two other separate credit facilities from Goldman Sachs Bank USA and Valley Bank.
As lending practices loosened during a booming economy, a rise in private lenders, fintech companies and other online lending platforms created easy access to capital, often leading to lenders not fully vetting their customers, Directed Capital explains. That, coupled with the events surrounding the COVID-19 pandemic, has created opportunities for the company to opportunistically acquire commercial mortgage loans.
“From our experience dating back to the early 1990s, we believe the current market dislocation will result in outsized opportunities for Directed Capital and its investors,” says CEO Chris Moench in prepared remarks.