Glossary

Debt Fund

In one sentence

A private investment fund making commercial real estate loans, often bridge and transitional debt, financed with leverage.

The longer version

Debt funds raise capital from investors and lend it, frequently on transitional assets that banks avoid, using repo and warehouse leverage to enhance returns. They fill the space between bank conservatism and equity risk.

Fund lending carries LP-grade reporting and audit expectations, so the loan file doubles as an investor and audit artifact.

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