Why we haven't gated. The structural reason, not the marketing reason.
Several of the largest private credit funds in the country have frozen investor redemptions in the past six months. The headlines read like sudden events. They aren't. They're the visible end of a structural choice the fund made years earlier about what it lends against and how that collateral behaves under stress.
890 Capital has not gated. We never have. And given how we're built, we have no plans to.
The reason is structural, not heroic.
When a fund is built on layered exposure to corporate debt, equity tranches, or pooled investments in operating businesses, the underlying assets can't always be liquidated fast enough to meet investor demand. The fund's cash position is downstream of cap-table negotiations, secondary-market bids, asset sales that take quarters to close. When redemptions surge, the fund either fire-sells at a discount or it gates.
That's the bind. It is rational, and it is also the kind of risk most investors don't price in until the gate is already down.
We are built differently because we lend on a different kind of asset.
Every 890 Capital loan is secured by a first-position deed of trust on real property in the Charleston tri-county. The collateral is the building. Not a promise from a borrower. Not equity in an operating company. Not a slice of a portfolio of receivables. A specific house, on a specific block, with a specific value our team has underwritten.
Three structural facts shape what happens next:
Loans are short. Average loan length across the 890 portfolio is 6.6 months. Capital cycles back to the fund continuously. We don't have to sell anything to free up cash — loans pay off on their own schedule, and the schedule is short.
Loans are first-position. If the worst case happens and a borrower can't perform, we are first in line on the foreclosure. We've never had to test this — zero foreclosures across 126 loans to date — but the line is there.
The collateral is finite and local. The properties we lend against are in markets where Caleb Pearson, our Chief Real Estate Executive, has sold 1,250+ homes and flipped 400+ over fifteen years. Underwriting is done by people who've walked the block. The asset has a buyer at a known number even in a worse market.
Where does that leave us, two years in?
As of June 1, every active loan in the portfolio is current and performing — 53 active loans representing more than $19M in principal. No defaults. No foreclosures.
126 loans funded since inception. 73 paid off. 53 active. $45M+ deployed. Zero foreclosures. Zero gated withdrawals. Every monthly distribution paid on time, every month, since inception in April 2024.
That structural choice doesn't make for exciting marketing copy. It does make for predictable, reliable returns for our accredited investors.
If you're new to 890 Capital and the offering — three terms, 10.00% APY for 1-year, 10.50% for 3-year, 10.75% for 5-year, distributions paid monthly by the 5th, $100K minimum, 506(c) accredited only — the next step is at 890capital.com/request-investor-access.
For accredited investors only. Past performance does not guarantee future returns. See 890capital.com for full disclosures.
Want to talk through whether 890 Capital fits your portfolio?
Request investor access at 890capital.com/request-investor-access