OEI Private Credit made a deliberate decision: stop chasing volume across thousands of small borrowers and instead partner deeply with a smaller number of professional fund managers who already know what they're doing. Here's the thinking behind that — and why it works for both sides.
We realized early on that dealing with a large volume of small borrowers — each with their own unique risk profile, inexperience, and capital needs — was not the most effective use of OEI's resources or capital.
Instead of supporting ten borrowers each looking to borrow $1 million for real estate development, OEI can deploy the same capital to a single vetted fund manager who already has a process, a team, and a track record. That fund manager then deploys the capital across multiple opportunities — more efficiently, more responsibly, and with far greater oversight than any individual borrower could provide.
This shift is not just better for OEI — it's better for the market. Fund managers with strong track records have historically struggled to access the kind of flexible, committed capital that OEI provides. They are professional, disciplined, and experienced. They just needed the right credit partner.
The OEI Ready Capital Facility was designed precisely around this insight. The result is a program that works harder, costs less to administer, and produces better outcomes for everyone involved.
Let's be honest — raising capital is hard. It means constant calls, back-to-back meetings, and pitching the same story to investor after investor, month after month. With OEI by your side, you don't have to do that.
You qualify for the facility once. Then you use it as you wish. You can absolutely continue raising capital from investors — and many of our borrowers do. But you also have a committed line sitting there, ready to deploy the moment an opportunity surfaces. No re-pitching. No waiting on an LP's investment committee. Just capital, ready to go.
And critically — you pay zero interest on the facility if you don't use it. This is not a loan sitting on your balance sheet costing you money. It's a tool in your pocket.
When an opportunity surfaces, you can act immediately — draw from the facility and move while others are still in LP pitches.
Deploy first, then raise from investors to repay the facility. This flexibility fundamentally changes how you structure deals.
No draws means no interest. The facility sits ready at no ongoing cost beyond a small unused line fee — the cheapest option available is simply not using it.
Once you qualify, the line revolves. Repay, redraw. You don't re-qualify every time — the capital stays available throughout your facility term.
Here's how a fund manager might use the OEI Ready Capital Facility in practice:
We look for deals that make sense and partners who are professional. We are not a lender of last resort — we are a strategic credit partner for operators who have already proven they know what they're doing.
We review the opportunity itself — not just the borrower. If the deal is sound and the deployment strategy is clear, that matters as much as anything on paper.
We partner with fund managers, independent sponsors, and capital raisers who operate with institutional discipline. This is not a program for first-time operators.
A successful history in fund management carries significant weight. Multiple closed deals, managed funds, or a clear exit history are all strong qualifiers.
Because the loan is unsecured, we require precise draw schedules and draw requests so we understand exactly where funds are going at every stage. An exit strategy is non-negotiable.
Our documentation requirements are purposefully straightforward. We focus on what tells us the most — your professional history, your financials, and your plan.
Note on UCC Liens: On specific requests or for larger draw amounts, OEI will place UCC liens to secure individual draws. This is a standard protective measure — not a reflection of borrower creditworthiness — and protects both parties throughout the facility term.
Because the OEI Ready Capital Facility is extended without traditional hard collateral, we require borrowers to place an Activation Facility — a cash reserve — into escrow with OEI before the credit line goes live. Here is exactly what that means and why it works the way it does.
In the event of a loan default, OEI uses the activation facility to cover accrued interest payments. It is our primary protection in an otherwise unsecured structure — and it keeps our underwriting process lean and fast.
The activation facility is held in an interest-earning escrow account. Your reserve is not dead money — it generates a return for you while your credit line remains active.
The activation facility can be released at the borrower's first request — provided no outstanding credit facility funds are currently drawn. Once your line is fully repaid, your reserve is yours to take back immediately.
The reserve is not a punishment or a sign of distrust. It is the mechanism that keeps your credit line permanently active and ready — and it signals to OEI that you are a serious, committed borrower.
The activation facility is sized to cover interest payments in the event of default — nothing more. It is not a down payment on the loan. It is a protective buffer that allows OEI to move fast and lend without traditional collateral requirements.
The activation reserve is separate from your credit facility. A $3M facility with a 15% reserve means $450K in escrow — and $3M fully available to draw. Your reserve does not reduce the line.
When you close or exit the facility — with no outstanding draws — OEI releases the full activation reserve back to you, including all interest earned during the facility term. No friction, no delays.
Jonathan Perez, Senior Partner at OEI Private Credit, is personally leading outreach for the Ready Capital Facility. Book a direct call — bring your track record, your pipeline, and your questions. We'll tell you within the first conversation whether OEI is the right fit.