Red Oak Capital Group (RED OAK) announced that its Q1 interest payments to bondholders are being released right on schedule.
“We understand that the current economic climate resulting from COVID‐19 has raised concerns for many investors, however, we are in a unique position and actually performing stronger in the marketplace right now” said Chip Cummings, CEO of Red Oak.
Red Oak’s bonds are securitized by debt instruments on a variety of cash‐flowing commercial real estate projects. Since the assets held in the portfolios vary in property type and geographic location, the performance of the funds are not as susceptible to the economic downturn.
Specializing in short‐ term bridge loans, Red Oak’s structure provides for strong cash reserves on each project within the portfolios, providing continuity in cashflow. With such strong cash reserves, the quarterly interest payments on the bonds issued by Red Oak Capital Fund II, Fund III and Fund IV are being released to investors on schedule, and in full.
“With regard to projects, we are actually seeing more quality deal flow, and about twice the typical volume right now” added Cummings. “This is allowing us to increase the quality of the assets we consider adding to each of the portfolios”
Red Oak’s recent fund offerings have been issued under the SEC’s Regulation A+, Tier II which allow companies to sell up to $50 million in securities within a 12‐month period. Red Oak filled its recent offering, Fund III in just 52 days. Their current open offering is Red Oak Capital Fund IV which has already raised over $23 million in capital.
Crescent Securities in Dallas serves as the managing broker dealer for the offering. The national firm of UHY is the auditing firm, and the securities firm of Kaplan Voekler Cunningham & Frank acts as counsel.
Complete offering details can be found at the SEC’s website.
About Red Oak Capital Group
Red Oak Capital Group is a technology enabled, private equity firm specializing in direct lending within the commercial real estate industry. It is comprised of seasoned investment and technology professionals with robust sourcing capabilities and vast institutional underwriting experience. Powered by their proprietary ROCX automated underwriting and origination platform, Red Oak efficiently develops a highly targeted pipeline of secured commercial real estate loan products. Additional information may be obtained by visiting www.RedOakCapitalGroup.com, or by calling (866) 854‐3900.
Red Oak Capital is a sponsor of The DI Wire, and the article was published as part of their standard directory sponsorship package. The views expressed in the article are those of the author and are not necessarily shared by The DI Wire.