Redwood Private Real Estate Debt Fund is preparing to broaden the investment policy governing at least 80% of its assets, according to a prospectus supplement filed with the Securities and Exchange Commission on August 20, 2026.
Under the fund’s current policy, at least 80% of its net assets, plus investment-related borrowings, must be invested in private U.S. commercial real estate-related debt. The revised policy would remove the U.S.-based limitation and require the same percentage to be invested more broadly in private commercial real estate-related debt investments.
Eligible investments under the revised policy may include real estate mortgages, mortgage participation notes, mezzanine debt, senior and junior mortgage loans, and lines of credit for commercial real estate investments and real estate-related entities, including REITs. The 80% allocation threshold would remain unchanged, but the revision would give the fund greater flexibility in both the geographic reach and types of debt investments it can pursue.
Before implementing the change, the fund plans to conduct a repurchase offer from October 20 through November 10, 2026. Participating shareholders would have their shares repurchased at the fund’s net asset value as of November 10. Shareholders may withdraw or modify their requests before the offer closes.
If the repurchase offer is oversubscribed, the fund will not implement the revised investment policy without obtaining shareholder approval. Otherwise, the change is expected to take effect as soon as practicable after the repurchase period. In a separate supplement, the fund clarified that it may—but is not required to—repurchase up to an additional 2% of its outstanding shares when a repurchase offer is oversubscribed; remaining requests would be fulfilled on a pro rata basis.
