Arabella Capital Debt Fund
Real estate lending that targets monthly income through senior bridge and subordinated mezzanine loans.
Private offering. Eligibility, availability, and terms are governed by the current offering documents.
- Target Return Range
- 8-13%
- Distributions
- Monthly
- Holds
- 1-2 Years
- Minimum
- $100K
- Management Fee
- None
- Offering
- 506(c)
Source: Arabella Capital Debt Fund one-pager, Oct. 20, 2025 | As of Oct. 20, 2025. Target and projected results are forward-looking objectives. Actual results may differ materially.
At a glance
Fund terms.
- Offering size
- Up to $15,000,000
- Minimum investment
- $100,000 per unit
- Target portfolio mix
- ~50% Bridge / ~50% Mezzanine
- Target borrower mix
- About 70-75% to the Arabella Real Estate Fund (8 years of borrowing history, zero defaults to date) / 25-30% to vetted third-party borrowers
- Capital deployment
- Loans within 30-90 days of subscription; distributions begin the month after deployment
- Max third-party loan LTV
- 70%
- Manager co-investment
- Minimum 5% of total subscriptions
- Affiliate loan governance
- Independent Loan Committee
- Reporting
- Quarterly comparative reporting
- Advisory Committee
- Seat available to $1M+ investors
Source: Arabella Capital Debt Fund one-pager, Oct. 20, 2025 | As of Oct. 20, 2025.
Terms current as of June 2026.
Target returns
Target returns by class and investment size.
Bridge and mezzanine economics are shown separately, then blended. These are target returns. Actual outcomes may differ materially.
Source: Arabella Capital Debt Fund one-pager, Oct. 20, 2025 | As of Oct. 20, 2025
Swipe to compare target returns →
Operating approach
Loan underwriting.
- 01
Bridge loans are senior or first-lien loans that can finance acquisition, renovation, entitlement, or stabilization plans.
- 02
Mezzanine loans are subordinated or UCC-secured loans with different payment priority and return objectives.
- 03
The target portfolio mix is roughly half bridge and half mezzanine, with about 70 to 75% of loans to Arabella Real Estate Fund projects and 25 to 30% to vetted third-party borrowers.
- 04
Affiliate loans go through an Independent Loan Committee and quarterly comparative reporting is part of the current materials.
Return drivers
Sources of return.
- Borrower rate on bridge loans: 12%
- Borrower rate on mezzanine loans: 15-18%
- Interest rate spread after investor target returns
- Repayment, refinance, or extension outcomes
Collateral position
Senior and subordinated lending.
Bridge / senior
Senior or first-lien loans
Bridge loans in the current one-pager are senior or first-lien loans with a 12% borrower rate. Loan structure, collateral coverage, and enforcement rights still vary by loan.
Mezzanine / subordinated
Subordinated or UCC-secured loans
Mezzanine exposure sits behind senior debt and is shown with a 15-18% borrower rate. It may carry different economics, but also different priority and loss considerations.
Alignment and governance
Alignment and oversight.
Co-investment and oversight do not remove investment risk. The fund documents govern all terms.
- Manager co-investment of at least 5% of total subscriptions
- Independent Loan Committee for affiliate loans
- Maximum third-party loan LTV of 70%
- Quarterly comparative reporting by loan type and borrower relationship
Fees and liquidity.
- Liquidity
- Class B 2-year minimum hold. Class C 1-year initial hold with two 6-month extension options.
- Fees
- No management fee. Manager compensated from interest rate spread.
Source: Arabella Capital Debt Fund one-pager, Oct. 20, 2025 | As of Oct. 20, 2025
Source: Arabella Capital Debt Fund one-pager, Oct. 20, 2025 | As of Oct. 20, 2025
Risk and fit
Investment risks.
- Borrower default or delayed repayment
- Collateral value and market changes
- Subordinated priority for mezzanine positions
- Illiquidity during applicable hold periods
- Concentration and affiliate transaction considerations
This summary is not complete. Review the applicable private placement memorandum, operating agreement, subscription documents, and risk factors before making any decision.
Questions investors ask
Investor questions.
These answers summarize current materials. The definitive offering documents govern the investment.
Is every loan in a first-lien position?+
No. Bridge loans are senior or first-lien. Mezzanine loans are subordinated or UCC-secured and carry different priority and loss considerations.
How are distributions described?+
Distributions are monthly, interest-only, and paid in arrears, subject to fund documents and available cash.
What should I diligence first?+
Start with lien position, loan-to-value methodology, borrower plan, repayment source, concentration, affiliate governance, fees, liquidity, and default remedies.
Materials
Offering documents.
This page summarizes current source materials. The definitive documents control if any summary differs from them.
This website is for informational purposes only and does not constitute an offer to sell or a solicitation to buy securities. Any offering is made only through the applicable definitive offering documents and only to eligible investors.
Review the offering.
Review the funds and discuss your goals with Investor Relations.