Builders Capital Opportunity FundBCOF is accepting up to $75M in Class A debt investment and up to $125M in Class B equity investment.
Summary of Terms
Builders Capital Opportunity Fund LLC is a Washington limited liability company. Its sole member and manager is BCOF Manager LLC. Investments in the Fund are either by purchase of non-voting economic interest units (Class B Units) or secured first deed promissory notes (Class A Notes).
An affiliate of the Fund, Construction Loan Services II LLC (d/b/a Builders Capital) originates, underwrites, and services the Fund’s loans. The Fund will pay a market rate servicing fee presently equal to 29.2 bps per month based on the total commitments of the Fund. The Fund will also reimburse the servicer for out of pocket expenses.
No fixed management fee. BCOF Manager is reimbursed only for its out-of-pocket expenses that benefit the Fund, and as compensation, BCOF Manager receives 70% of the profits of the Fund after payment of all Class A interest and Class B preferred return. This is intentionally done to better align management’s interests with those of the investor.