Published in Finance

Red Oak Capital plans fourth $50 million bridge loan fund

BY Sunday, February 09, 2020 07:15pm

GRAND RAPIDS — Red Oak Capital Group LLC has formed another fund that seeks to raise $50 million through a public bond offering to make commercial real estate bridge loans.

The Grand Rapids-based Red Oak Capital said the U.S. Securities and Exchange Commission has fully qualified Red Oak Capital Fund IV and the bond fund is now open to investors. 

Red Oak Capital CEO Chip Cummings COURTESY PHOTO

Formation of the fourth bond fund follows three previous funds of $50 million each that funded 23 commercial real estate projects, including six by Fund III, said Red Oak Capital CEO Chip Cummings.

Fund IV also comes to market after Red Oak’s Fund III, which MiBiz previously reported on, reached capacity in December after only two months.

“We purposely held this Offering back a few months to allow us to strengthen and build our internal operations,” Cummings said. “This allows us to more effectively and judiciously deploy the capital and maintain the quality within the asset portfolios.”

Red Oak Capital has offered the bond funds under federal Regulation A+, which allows companies to sell up to $50 million in securities over a 12-month period.

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