LOS ANGELES–(BUSINESS WIRE)–Jan 23, 2025–
Liberty SBF (“Liberty”), a leading national alternative lender with over $2 billion in originations since 2011, announced the launch of Liberty Credit Opportunities Fund I, LP. The fund has a target raise of $100 million and will focus on small balance commercial real estate credit opportunities in primarily two categories – owner user / SBA loans and multifamily bridge and preferred equity (including purchases of portfolios and individual distressed notes). The fund intends to make quarterly income distributions and expects to return investor capital within four years.
The launch comes at a pivotal moment in the commercial real estate market, as higher interest rates and stricter lending requirements from traditional banks have created significant opportunities in the small balance lending space. Liberty’s fund will target net returns in the mid to high teens through investments ranging from $1 to $15 million across various commercial real estate sectors.
“The launch of this fund vehicle is a natural evolution of Liberty’s proven strategy over the past 14 years, having been capitalized by private equity and managing fund-like SPVs in the past,” said Alex Cohen, CEO and Co-Founder of Liberty. “Our deep expertise in small balance commercial real estate lending, combined with our nationwide origination platform and strong asset management approach positions us perfectly to capitalize on the current market opportunity.”
Since 2011, the firm has raised and deployed capital for institutions, foundations, and family offices, using various structures and fund-like special purpose vehicles. At its peak in 2021, Liberty held AUM of $444 million, while servicing over $460 million in loans that year.
“The current market dislocation presents a unique opportunity in small balance commercial real estate credit,” said Alex Prombaum, President and Co-Founder of Liberty. “With transaction volumes down as much as 80% in 2023 and traditional lenders pulling back, we’re seeing attractive opportunities across our target sectors, particularly in stabilized assets with strong demand fundamentals.”
Liberty’s track record includes zero credit losses since inception, with historical returns in the high teens, net of fees, from its pre-fund investments which came from private equity groups and family offices. The firm’s vertically integrated platform handles all aspects of lending in-house, from origination and underwriting to servicing and asset management.
Liberty also announced the addition of Zev Nagel as Managing Director, Investment Funds. Nagel comes from his most recent role at Decron Properties Corp., a diversified real estate investment firm, where he served as Chief Administrative Officer. He brings extensive experience in real estate and financial operations to help scale Liberty’s investment management business.
“I’m thrilled to join Liberty at this exciting juncture,” said Zev Nagel, Managing Director. “The firm’s history and deep market relationships provide an excellent foundation for this kind of capital raise and deployment. The timing couldn’t be better to launch this strategy given current market conditions.”
About Liberty SBF
Liberty SBF ( www.libertysbf.com ) is a leading alternative asset manager focused on small balance commercial real estate lending. Founded in 2011, the firm has originated over $2 billion in loans across multiple products and maintains an active capital markets presence, having securitized or sold over $1 billion in loans while retaining servicing rights. Aggregate commercial real estate originations volume exceeds $525 million. Liberty’s nationwide platform combines deep credit expertise with robust origination and asset management capabilities. Liberty’s management team has a collective 75 years of experience in commercial real estate loan originations, underwriting, servicing, and asset management.
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KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: BANKING ASSET MANAGEMENT PROFESSIONAL SERVICES FINANCE
SOURCE: Liberty SBF
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PUB: 01/23/2025 06:42 PM/DISC: 01/23/2025 06:42 PM
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