Red Oak Capital, a private equity firm specializing in commercial real estate, has broken escrow on its latest bond offering with a $2.293 million closing.
The $50 million Reg A+ Tier II bond offering was qualified by the SEC on September 4th.
“This is a great fixed income, alternative investment product,” said Chip Cummings, senior managing partner with Red Oak. “As a general solicitation bond offering, it is attractive to both accredited and non-accredited investors – as well as qualified money.”
The bonds are securitized by senior commercial mortgage notes, back by existing income producing commercial real estate properties. As an institutional quality bridge-bank lender, Red Oak Capital specializes in the acquisition of smaller commercial real estate debt instruments.
Nick Duren, managing broker dealer and President of Crescent Securities added, “We are certainly pleased that in just a short time we have secured eight selling agreements with quality firms, and are negotiating with several others.”
Established by the SEC in 2015 under the JOBS Act, the Regulation A+ Tier II offerings allows companies to sell up to $50 million in securities in a 12-month period. In addition, it requires regular financial filings and audited financial statements.
The Red Oak Capital Group is a fintech private equity firm specializing in commercial real estate investments and manages several Funds, including Red Oak Capital Fund I. Based in Michigan, Red Oak Capital Group was founded in 2015 to serve the capital finance and investment markets.