News
Banks put up $265M for St. Pete firm’s latest fund
Jul 18, 2025
Chris Moench, CEO and founder of Directed Capital
By Christina Georgacopoulos – Reporter, Tampa Bay Business Journal
Directed Capital closed its 11th fund earlier this year with $90 million in equity commitments and has since inked deals with several of its longtime banking partners for an additional $265 million in funding.
With the credit facilities backed by First Horizon Bank, Banc of California, Valley National Bank and Centennial Bank, the specialty financing firm will aim to acquire and originate more than $600 million in commercial real estate loans with the fund, said Chris Moench, Directed Capital founder and CEO.
The regulatory climate has created favorable conditions for private credit firms like Directed Capital that buy real estate loans from banks, he said. Banks have been encouraged to offload distressed loans and reduce exposure to non-core assets, which has accelerated transaction volume and shifted pricing in favor of buyers, Moench said.
“The market expected there to be a more significant downturn and more problematic assets. Banks are still extending real estate transactions and modifying deals to give borrowers more time … but some banks want to move through the problem so they can get back to what they do well, which is growing with healthy borrowers so they can do new deals,” he said. “So there’s still a regulatory arbitrage between us and a bank where it makes more sense for us to own an asset and do the workout.”
While distressed debt purchases are a substantial part of the firm’s portfolio, loan originations account for around half of the $170 million that Directed Capital has already deployed out of its 11th fund. There is a huge opportunity for private credit lenders to step in where banks have pulled back, Moench said.
The firm recently funded an acquisition of a beachside hotel by a local developer who was not in a position to get a deal for traditional bank financing at a rate that made economic sense, he said.
“It comes down to a cost-benefit calculation for owners or developers. What are they trying to accomplish? Banks are going to require more equity or other collateral. For borrowers, they have to assess if they want to give up more equity in a deal or tie up their assets,” Moench said.
Directed Capital Closes $90 Million for Eleventh Private Credit Fund; Secures $265 Million in Credit Capacity to Target $600 Million in Acquisitions
Jul 14, 2025
Firm’s Loan Acquisitions and Originations Now Exceed $2.3 Billion Across Nearly 25 Years
ST. PETERSBURG, Fla. & SAN DIEGO–(BUSINESS WIRE)–Directed Capital Resources, LLC (Directed Capital), a national private credit and opportunistic real estate finance firm, has closed $90 million in equity commitments for its eleventh flagship fund and secured more than $265 million in credit capacity from longstanding banking partners. This capital base positions the firm to pursue more than $600 million in commercial mortgage loan acquisitions and originations nationwide. Since inception, the firm has acquired and originated over $2.3 billion in assets.
The firm’s credit capacity includes closed facilities totaling $215 million from First Horizon Bank, Banc of California, Valley National Bank, and Centennial Bank. An additional facility is expected to close in July, bringing total committed capacity to $265 million. These relationships reflect the confidence of regional and national lenders who have supported Directed Capital across multiple market cycles.
Directed Capital’s most recent fund, DCR X, acquired and originated more than $700 million in commercial mortgage assets, the majority of which have been resolved. DCR XI has already acquired and originated over $200 million in assets to date, reflecting the platform’s growing scale and consistent deal flow.
The current market environment presents compelling opportunities for acquisition and origination, particularly for firms like Directed Capital that focus on acquiring performing and sub-performing commercial mortgage loans collateralized by cash-flowing real estate. These loans typically range from $1 million to $25 million and are secured by properties operated by small business owners across sectors such as retail, industrial, healthcare, lodging, multifamily, and select suburban office. The firm sources these opportunities through a broad network of market participants, including direct relationships with regional and national banks.
“Directed Capital takes great pride in providing solutions where traditional lenders cannot,” said Chris Moench, CEO of Directed Capital. “We are focused on supporting small business owners while delivering exceptional, risk-adjusted returns for our investors.”
Since 2001, Directed Capital has built a reputation for disciplined underwriting, consistent sourcing, and creative asset resolution strategies. As the firm approaches its 25th anniversary in 2026, its longstanding relationships with investors, lenders, and capital providers continue to drive value across its sourcing, underwriting, and asset management. In a recent investor letter, the firm noted that “regulatory shifts encouraging banks to offload distressed loans have created a favorable environment for DCR XI’s disciplined underwriting and relationship driven acquisitions.” The Federal Reserve has moved away from “extend and pretend” policies, instead encouraging banks to sell underperforming or non-core loans to recycle capital. This regulatory shift, combined with increased bank M&A activity, has created a more opportunistic pricing environment and accelerated transaction volume.
DCR XI continues to actively pursue commercial mortgage acquisitions. The firm’s investment and servicing functions are performed entirely in-house, with resolution strategies ranging from refinance and loan restructuring to foreclosure and asset repositioning. “We continue to see significant opportunity in the private credit markets, particularly as banks reassess their non-core exposures,” Moench added. “Our platform is built to be opportunistic and act decisively which are qualities that matter in this environment.” In parallel with acquisitions, Directed Capital has also experienced a notable increase in high-quality origination opportunities. These loans typically feature moderate loan-to-value ratios, strong underlying asset performance, and experienced sponsors seeking private capital due to tightened credit from traditional lenders. The firm continues to maintain flexibility in structuring, while applying rigorous underwriting standards consistent with its acquisition discipline.
With a team based in St. Petersburg, San Diego, and Boston, Directed Capital manages all aspects of loan acquisition, servicing, accounting, and resolution internally.
About Directed Capital
Directed Capital is a national private credit firm that acquires, manages, and repositions commercial mortgage loans, and originates bridge loans, in the $1 million to $25 million range. Operating in the alternative investment space, Directed Capital is known for delivering exceptional risk-adjusted returns traditionally uncorrelated with broader markets. Founded in 2001, the firm has sponsored eleven funds and acquired or originated more than $2.3 billion in commercial real estate loan assets. Directed Capital Advisors, LLC is an SEC Registered Investment Advisor (RIA).
Contacts
Unstick Things
July 8, 2021
Firm finds that a Golden Rule approach to working borrowers pays big dividends.
“We try to stay smaller than really gets the focus and attention of Wall Street money centers, but we’re bigger than the little mom-and-pop players,” CEO Christopher Moench says. “We occupy that middle ground and it’s been a great niche for us to operate within.”
Directed Capital Closes 10th Fund at $92M
September 24, 2020
Directed Capital has closed its 10th fund, having raised $92 million in equity commitments that will be deployed to purchase commercial real estate debt.
The firm, which opportunistically acquires and strategically repositions commercial mortgage loans, reportedly will work to acquire more than $500 million in commercial mortgage loans, then seek to resolve those assets.
Directed Capital Raises $92 Million for Distressed Debt Fund, Receives Combined $100 Million in Credit Facilities From Goldman Sachs, Pacific Western Bank, Valley Bank
September 23, 2020
Directed Capital, a national opportunistic real estate finance firm that acquires and strategically repositions commercial mortgage loans, today announced it has closed its tenth flagship fund, raising $92 million in equity commitments that will be deployed to purchase commercial real estate debt. The firm will then work to successfully resolve the assets, creating value for the partnership, while also providing borrowers with the flexibility to work out their debt, and in many cases help to continue their business operations.
“Directed Capital takes great pride in being able to provide solutions to borrowers when traditional lenders have failed to meet their needs,” said Directed Capital CEO Chris Moench, who has specialized in acquiring and repositioning debt for 30 years. “Being able to aid Main Street, while providing investors with superior, risk-adjusted returns typically uncorrelated with the market, is well in line with the longstanding tradition of this firm of doing good, while increasing investor returns. In addition, from our experience dating back to the early 1990’s, we believe the current market dislocation will result in outsized opportunities for Directed Capital and its investors.”
Goldman-Backed Firm to Buy Struggling Commercial- Property Debt
May 11, 2020
Directed Capital is seeking to acquire as much as $600 million of debt tied to everything from retail to senior housing and hospitality properties. The St. Petersburg, Florida-based firm has received a combined $60 million in financing from Goldman Sachs and Valley National Bancorp for its current round of fund-raising.
The expectation is that large banks will try to offload poor-performing loans amid a sudden and severe economic downturn, said Chris Moench, chief executive officer at Directed Capital. The firm has already completed deals for loans backed by restaurants and small offices since the pandemic hit.
Directed Capital Seeks $100 Million for Distressed Real Estate Fund
April 9, 2020
Directed Capital, which invests in distressed commercial real-estate loans, has secured $60 million in credit facilities to back deals as it continues to pitch its newest fund.
The firm, based in St. Petersburg, Fla., is seeking $100 million for a new fund focused on buying underperforming commercial real-estate debt. The firm looks for smaller loans, typically $1 million to $20 million, with properties and borrowers mostly based in suburban areas or small cities, said Chris Moench, the firm’s chief executive.
Goldman Sachs Increases Directed Capital’s Credit Facility to $150 Million, Firm Acquires $80 Million Loan Portfolio From FDIC
May 1, 2018
Directed Capital, a national opportunistic real estate finance firm that acquires and strategically repositions underperforming commercial mortgage loans, today announced Goldman Sachs has increased its credit facility to $150 million to facilitate the acquisition of an $80 million loan portfolio from the Federal Deposit Insurance Corporation (FDIC).
The portfolio, consisting of first lien commercial mortgages originating from a failed bank that the FDIC took over in 2017, presented DCR Mortgage Partners VII, LP with an opportunity to acquire a large book of performing and underperforming loans at a discount. The firm will now work diligently to successfully resolve the assets and create value for the partnership while providing the borrowers flexibility to work out their debt, and in many cases help to continue their business operations.
Downtown St. Pete’s Morgan Stanley Tower lands tenant to backfill Edwards Group space
April 25, 2018
The full floor that Edwards Group vacated in a downtown St. Petersburg office tower earlier this year has been leased to a growing private equity group.
Directed Capital, which specializes in commercial real estate debt and equity, has taken the full 16th floor or 13,460 square feet in the Morgan Stanley Tower, the building’s owner, Feldman Equities, said Wednesday.
The lease is an expansion for Directed Capital, which will double its footprint in downtown St. Pete. The firm is expected to make the move this summer from a nearby office tower.
Tampa Bay firm buys $80 million in loans backed by Louisiana hotels, restaurants, apartments
April 16, 2018
The collapse of a New Orleans bank is proving a boon to a fast-growing St. Petersburg real estate finance firm.
Directed Capital has acquired $80.2 million in distressed loans originated by the failed bank and collateralized by hotels, apartments and dozens of other commercial properties in Louisiana. The company bought the loans from the Federal Deposit Insurance Corp. with the help of a $150 million line of credit from Goldman Sachs.
Here’s how many millions investors pumped into the latest fund by a St. Pete firm
November 14, 2016
Directed Capital Resources raised $77 million for its seventh and largest investment fund to date.
Directed Capital, a distressed assets workout specialist firm headquartered in St. Petersburg, also received a $40 million increase in its revolving credit facility from Goldman Sachs Bank USA.
The financial resources provided by investors and by the bank give Directed Capital more capital to deploy as it works with borrowers to turn around troubled commercial mortgage loans, which makes up about 70 percent of its business, said Chris Moench, CEO.
Goldman Bank Boosts Mortgage Lender With Nearly $100 Million in Credit
October 12, 2015
Goldman Sachs Group Inc.’s banking arm has provided nearly $100 million in credit to Directed Capital Resources, refinancing the commercial-mortgage lender’s existing debt and doling out a new credit line.
Goldman Sachs Bank USA, which had provided Directed Capital with a $70 million loan in 2012, refinanced the debt with $58 million.
The Wall Street firm’s banking unit also provided the company with a $40 million revolving credit facility, Directed Capital said.
Directed Capital, which specializes in distressed loans to doctors’ offices, retail centers and other small- and mid-sized businesses, has bought more than $1 billion in mortgages since its 2001 founding. The company has raised over $200 million in equity investments, and expects to close on another $100 million funding round in December.
