Deer Park Launches Distressed CMBS Fund 

Deer Park Road Management Company, LP has launched Deer Park Commercial Mortgage Opportunity Fund, I, a closed-end, “private equity style” fund focused on distressed commercial mortgage-backed securities (CMBS).  

The $3 billion-managing Steamboat, CO-based alternative asset firm raised $170 million for its debut Deer Park Mortgage Opportunity Fund I, a closed-end fund focused on legacy, non-agency residential mortgage-backed securities (RMBS), in November 2023, and is looking to raise up to $250 million for the fund. 

The firm was founded by Michael Craig-Scheckman in 2003 with Scott Burg, CIO and managing partner, joining in 2010. 

“Importantly, we believe that the distressed pricing levels in CMBS are reminiscent of the residential mortgage opportunity after the global financial crisis and will play out over the next several years, aligning well with the term of the Fund,” said Burg. 

The fund, which will launch in January 2025, is structured to accept investments during the first two years and to wind down by December 31, 2031, subject to an optional 12-month extension at the discretion of the General Partner.