RCP Fund I utilizes a balanced dual investment strategy in real estate projects’ debt and equity to align interests and manage risk. The fund provides senior, first-lien financing that generates stable cash flows and priority recovery in a downturn, limiting potential losses. Concurrently, RCP Fund I acquires a stake in the general partnership to participate in promote payments upon successful exits, offering upside potential.
This strategic approach combines the downside protection of insured debt with the high return possibilities of equity. The fund is positioned to capitalize on current market inefficiencies identified by its experienced management team. Their expertise facilitates synergistic investments across the capital stack to optimize risk-adjusted returns.
By participating in both the debt and equity of real estate deals, RCP Fund I creates a portfolio with multiple levers to withstand market volatility while still delivering above average returns.
The fund provides accredited investors an attractive vehicle to diversify into real estate with mitigated downside risk. RCP Fund I offers a balanced solution for today’s intricate investment landscape.