BridgeInvest, a Miami-based alternative investment manager specializing in commercial real estate credit, held the final close of its fourth vintage specialty credit fund, raising over $670 million in equity.
BridgeInvest Specialty Credit Fund IV (Fund IV) and its parallel investment vehicles aim to capitalize on the current market conditions by offering senior-secured financing to existing and transitional assets in the multifamily, industrial, hospitality and retail sectors. The fund is the firm’s largest to date and will target loans ranging from $20 million to $150 million.
“BridgeInvest’s core competency lies in its adaptability to evolving private credit demands, which exemplifies our dual ability to serve as a liquidity provider and deliver consistent risk-adjusted returns to our investors,” said Founder and Managing Partner Alex Horn. He added that Fund IV “underscores the robust financial capabilities in our pipeline, particularly as we increase deal flow amidst a constrained lending environment.”
The new fund is expected to play a crucial role in addressing the current liquidity crunch in the commercial real estate market. BridgeInvest plans to close up to $1.2 billion in transactions over the next 24 months across its various lending programs, leveraging its reputation, institutional structure and the agility of a boutique investment manager.
Since its inception in 2011, BridgeInvest has provided over $1.8 billion in development and bridge solutions tailored to meet borrowers’ funding needs. In an interview with Alternatives Watch last year, Founder and Managing Partner Horn said the firm was working with blue-chip real estate firms to provide senior secured debt in the Sunbelt and in the Midwest, and that pensions, life insurance companies and other investors were seeing the potential gain in the middle-market world that they are unable to get through major players that have traditionally offered REITs, such as Starwood Capital Group and Blackstone.
“Our philosophy has always been senior secured, and our leverage has always been low at 10-15%,” he said. “It has actually been in the last year that there has been a boon for the unlevered lender that has gotten the uptick in return without the increased cost in borrowing,”
