Clopton Capital, a Chicago-based commercial real estate lending company, is announcing its intention to form a strategic hedge fund.
According to the company, the fund will be based solely on the investment criteria that any capital deployed will be secured two to one against income-producing commercial real estate on a capitalization rate appropriate for the surrounding area. In the event of a default, however, the property would be seized, and all contributed capital – including the loan amount – would be recovered by the lender.
The company did not provide a timeline regarding when the fund would become operational.
