At a glance
- A target size and fee for MOF II were not disclosed.
- The new fund follows MOF I, which raised $168 million in January 2024 and ends its investment period in June 2027.
- Fund selectors now have a second Deer Park RMBS vehicle to diligence, with the $168 million first fund and its June 2027 investment-period end as the main disclosed benchmark.
Deer Park Road Management launched Deer Park Mortgage Opportunity Fund II, a closed-ended vehicle that invests in non-agency residential mortgage-backed securities. A target size and fee for MOF II were not disclosed.
The new fund follows MOF I, which raised $168 million in January 2024 and ends its investment period in June 2027. Deer Park, based in Steamboat Springs, Colorado, manages about $2.5 billion in assets. Alternative Credit Investor first reported the launch.
Fund selectors now have a second Deer Park RMBS vehicle to diligence, with the $168 million first fund and its June 2027 investment-period end as the main disclosed benchmark. The open due-diligence item is whether Deer Park's loan-level credit work can price the newer securitisations the firm cites.
Deer Park said reduced investor participation and rate volatility had weighed on non-agency RMBS valuations, creating “attractive entry points” across the broader non-agency universe. That includes newer mortgage securitisations with distinct collateral characteristics and transaction structures. “Higher mortgage rates and an increasingly diverse mix of collateral and transaction structures have created pricing inefficiencies in non-agency RMBS,” said Scott Burg, chief investment officer and managing partner of Deer Park. Burg said the firm believes those inefficiencies “can be captured through disciplined, loan-level credit work.”
Reported by the Fund launches & raises desk from Alternative Credit Investor. Published . Corrections