Building on the success of our first Opportunistic Credit Fund, which has delivered a 12.8% annualized distribution rate (as of October 2025), we're launching Opportunistic Credit Fund II (OCF II) to capitalize on continued opportunities in commercial real estate credit markets
The opportunity
The higher interest rate environment that began in late 2022 created an extended period of dislocation in commercial real estate credit markets. Traditional bank lenders have retreated due to regulatory pressures and balance sheet constraints, leaving many owners and developers of multifamily and residential assets facing a financing gap for both new construction and refinancing.
Although the Fed has started lowering rates, banks show little appetite to quickly regain market share. There is speculation that traditional bank lenders may never fully return to their previous activity level in many markets, potentially creating a structural shift in real estate financing rather than just a cyclical one.
This creates sustained demand for alternative lenders able to provide flexible financing solutions to creditworthy borrowers.
Our approach
OCF II focuses on providing gap and bridge financing to well-located assets with strong downside protections. We target senior and mezzanine debt positions (including second trusts, b-notes, CMBS, and CLOs) as well as preferred equity in both new development and existing assets.
Our focus is on construction and transitional assets with experienced operators—segments where traditional bank lending remains most constrained.
We maintain our disciplined approach backed by more than a decade of experience. Since 2012, we've acquired or financed thousands of residential units, including hundreds of mezzanine and preferred equity investments.
Return expectations
Target Net Yield: 9-11%
While OCF I has exceeded initial expectations, we expect OCF II to deliver returns within our stated 9-11% range. This reflects the current rate environment: still attractive for credit investors, but more normalized than the exceptional conditions of recent years. We believe these returns remain compelling relative to traditional fixed-income alternatives while maintaining our disciplined focus on capital preservation to deliver returns within our target range of 9-11%.
Important note: We do not expect to pay dividends in the first 90 days from initial investment in the fund.
Investment in the Fund is limited to accredited investors via the Fundrise website. To verify accreditation, please go to your Account Settings or contact the Investor Relations team at investments@fundrise.com.
To read the full launch announcement, click here.
