Deer Park Road Management Company LP, an alternative asset management firm, announced the launch of Deer Park Commercial Mortgage Opportunity Fund I as a closed-end fund focused on realizing long-term growth of capital from opportunities within distressed commercial mortgage-backed securities (CMBS).
According to the company, the new private equity-style fund is designed to provide access to investments in CMBS to qualified and accredited investors. The fund, which will launch in January 2025, is structured to accept investments during the first two years and to wind down by Dec. 31, 2031, subject to an optional 12-month extension.
“In light of the tremendous disruption seen in commercial real estate over the past several years, we think this is an ideal time to invest in select CMBS opportunities,” said Scott Burg, chief investment officer and managing partner of Deer Park. “With the changes unfolding in the commercial real estate market, knowledge and experience in investment selection is a critical component to understanding the sector-specific challenges facing commercial real estate and identifying targets that offer the most attractive risk-adjusted return potential. Importantly, we believe that the distressed pricing levels in CMBS are reminiscent of the residential mortgage opportunity after the global financial crisis and will play out over the next several years, aligning well with the term of the fund.”
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