US investment management firm Ballast Rock has launched its first private credit fund, which will lend to small- and medium-sized real estate and solar projects.
The Ballast Rock Real Estate Private Credit Fund will focus on senior-secured debt instruments, with a target raise of $50m (£37.3m).
“Ballast Rock’s long-standing track record in real estate, infrastructure development, and capital structuring gives our investment team a strong foundation to enter private credit,” said Simon O’Shea, chief investment officer of Ballast Rock.
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“Investors in our private equity and venture capital funds have long encouraged us to explore opportunities in private credit, so we feel a fund that can benefit from our deep experience in real estate and infrastructure was a natural next step.”
The new fund will be managed by Max Jackson, who recently joined Ballast Rock Asset Management as managing director and private credit portfolio manager.
It will focus on four strategies: lot banking, Delaware Statutory Trust Financing, franchise location development and commercial solar development.
It will target loan sizes of $5m or less, which it sees as an underserved segment of the market.
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The fund expects short-term hold periods of six to 18 months for each investment.
It will be available to US accredited investors with a minimum investment of $50,000.
Ballast Rock is a Charleston-based investment management company that operates Ballast Rock Asset Management, Ballast Rock Private Wealth, and Ballast Rock Capital. Ballast Rock Asset Management comprises Ballast Rock Real Estate, which includes the firm’s Sunbelt multifamily real estate funds, and Ballast Rock Ventures, comprising venture capital and private equity teams.
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