Registered Investment Advisors

Different funds are structured in similar but different ways. For many mortgage funds, it is common for managers to receive loan fees paid by the borrowers (not fund investors). Also, it is typical that there is an asset management fee and some portion of the yield after a certain 'preferred return' is paid to investors. These are more completely spelled out in the fund's Operating Agreement and PPM. Please review those for details.

There is no universal allocation that is appropriate for all clients. Many advisors reference a diversified portfolio framework that allocates approximately 20% to alternatives, with private credit often comprising 30%–50% of that alternatives allocation. Final allocation decisions should be based on each client’s investment objectives, risk tolerance, liquidity needs, and time horizon, as determined by the advisor.

RTC VI has an initial 12-month lock-up period during which investor capital is not eligible for redemption. Following this period, redemption requests are processed quarterly, subject to the fund’s liquidity terms and governing documents. This structure is designed to support stable portfolio management and disciplined underwriting. The fund is best suited for clients with a long-term investment horizon who do not require near-term liquidity.

Risk mitigation is a core component of RTC VI’s investment strategy. The fund focuses on senior position loans with conservative loan-to-value ratios, comprehensive borrower and sponsor due diligence, and disciplined underwriting standards. Investments are diversified across borrowers and properties, with ongoing asset monitoring throughout the life of each loan. RTC VI lends primarily on California real estate, a market in which the firm lives and operates, allowing it to leverage deep local knowledge of submarkets, regulatory frameworks, and sponsor behavior. This localized, hands-on approach is intended to prioritize capital preservation while generating consistent income.

Red Tower Capital has a 15-year track record of delivering superior, risk-adjusted returns through its mortgage funds. Supported by 10 years of audited performance, the firm has produced annual returns exceeding 9% since 2015. Across nine real estate debt funds managed to date, Red Tower Capital has never experienced a loss of investor capital. The firm’s current offering, RTC VI, a private Mortgage REIT launched in 2020, is open to new investors.