Private Real Estate Liquidity, the “Bridger Fund 1” Way, Part 2 of 2

In our last blog post, we discussed how getting investment money out (liquidity) works differently in private real estate equity funds versus private real estate debt funds.

Today, we’ll answer a common question that is specific to Bridger Fund:

How does Bridger Fund specifically handle liquidity?

Bridger Fund is an evergreen fund, so investor redemptions are governed by clear rules outlined in our private placement memorandum (PPM) and informed by practical experience.

These rules are in place to protect all investors and try to maximize returns so we are not sitting on a lot of cash.

How the Bridger Fund’s Liquidity Works

1. Clear Structure First

We ask that all investors remain in the fund for at least 12 months, after which you may request a withdrawal with 60 days’ notice. Once we receive notice, the investor will receive half of their withdrawal request within 10 days and the rest within 90 days. For accounting purposes, we generally handle withdrawals and new investments at the start of each month.

This structure allows our investors to plan their withdrawals, and the fund doesn’t have to maintain large cash balances, which improves returns for everyone. The fund managers can make exceptions for investor hardships, especially when we have excess cash on hand.

2. Liquidity Comes from Loan Payoffs and Duration

The foundation of Bridger Fund’s liquidity profile is its underlying loan portfolio, which consists of senior-secured, first-lien real estate loans with relatively short maturities. These loans are structured to refinance or pay off within defined timeframes, creating recurring opportunities for principal to be returned to the fund. The current average maturity in the fund is approximately 9 months and the average paid off loan in the portfolio is approximately 14 months which includes any loan extensions.

So, most of our liquidity comes from the following sources:

• Interest payments from borrowers
• Loan payoffs (when borrowers repay their loans)

We do not count on selling loans to raise cash.

3. Using a Line of Credit to Smooth Cash Flow

To further support liquidity, the fund maintains a bank-provided cash flow line of credit. This facility is designed to manage timing mismatches that naturally arise in an evergreen fund structure, including:

• The period between loan payoffs and new loan fundings,
• Short-term differences between investor subscriptions and redemptions, and
• Operational cash flow smoothing without maintaining large idle balances.

The credit facility is not intended to increase portfolio risk or amplify returns. Instead, it serves as a liquidity bridge, allowing the fund to remain efficiently invested while meeting obligations in an orderly manner.

4. Portfolio Construction and Diversification

Loan-level diversification and staggered maturities further support liquidity management. This granular portfolio reduces dependence on any single loan outcome and helps maintain a steady cadence of cash inflows, reinforcing the fund’s ability to meet future redemptions. As of the end of December 2025, the fund held 32 loans with maturities spanning 1-20 months and the largest loan only representing 13% of the portfolio. Bridger Fund also has a very diverse investor base with 124 investors, with no investor owning more than 6% of the fund.

In normal times, we pay investors out using the following:

• Loan payoffs
• Excess cash/new investor dollars
• Short-term use of our bank credit line, if needed

5. What If Markets Get Tough?

When markets are stressed, our top priority is protecting all investors. We may slow down making new loans, let loan payoffs come in, and use the credit line to help with timing. We will avoid selling loans or offering loan participations on higher-yielding loans just to raise cash quickly.

The Bottom Line

Liquidity in the Bridger Fund is not instantaneous; in general, all debt funds are typically not framed that way. Our fund liquidity is designed through structure, supported by asset duration, and reinforced by prudent balance sheet tools. Our objective is to provide investors with transparency and confidence in how capital flows through the fund across market cycles, and to enable them to get in and out of the fund as their investment needs change over time.

If you have questions or would like to discuss further, we’re always here to help.