Private Real Estate Debt Funds: Why I Invest My Own Capital
Edwin D. Epperson III â—† Managing Principal, Blue Bay Fund I â—† 7 min read
That is not a story I tell to impress anyone. I tell it because it is the clearest explanation of why I built Blue Bay the way I did.
Before the first investor ever wired a dollar to Blue Bay, I made a decision I have never reversed: my capital goes in first. Not alongside. Not after. First. That was not a marketing strategy. It was a values decision. And I think you deserve to understand it before we ever speak.
I spent years in the United States Army Special Forces before I ever underwrote a mortgage note. In that world, there is an unspoken rule that shapes everything: you never ask someone to take a risk you are not willing to take yourself. You go first. You stand where your team stands. That principle did not leave me when I left the military. I built it directly into the structure of this fund.
What Co-Investment Actually Means at Blue Bay
Co-investment is one of those terms that gets used loosely in the investment world. Here is what it means specifically at Blue Bay Fund I.
Not a selection of deals where the numbers look best. Not deals where I have extra confidence. Every deal. This means that when you place capital with Blue Bay, you and I are in the same position. When a deal performs well, we both benefit. When a deal underperforms, I feel it alongside you.
There is no scenario in which you lose, and I come out ahead. That alignment is not accidental. I designed it that way on purpose.
In every deal Blue Bay Fund I underwrites, my personal capital is committed alongside investor capital. Every. Single. Deal.Edwin D. Epperson III, Managing Principal
Understand the Note Structure
Plain-English overview. No obligation.
Learn How Blue Bay Invests in NotesWhy This Was Non-Negotiable From Day One
I have met a lot of fund managers over the years. Most of them are smart. Most of them work hard. But not all of them have their own money in the deals they are asking you to invest in.
That gap between what a manager recommends and what they are personally willing to risk changes how decisions get made. It changes how carefully they look at a borrower. It changes how conservatively they underwrite LTV. It changes how quickly they act when something goes sideways.
When my money is in every deal, I cannot afford to cut corners on underwriting. I cannot afford to stretch the LTV ratios to chase a higher return. I cannot afford to take on a borrower I am not fully confident in. The discipline is not just policy. It is personal.
You go where your team goes. You take the risk you are asking others to take. That is how I was trained. It is how I manage capital.Edwin D. Epperson III · Managing Principal, Blue Bay Fund I
Who I Built This Fund For
I did not build Blue Bay Fund I for everyone. I built it for a specific kind of person. Someone who spent decades building something real -- a business, a career, a life of disciplined work. Someone who has capital to protect now and needs it to generate a quiet, reliable monthly income without the stress of the stock market or the headaches of managing property.
Someone who gives generously and needs that income to keep flowing regardless of what the market does on any given day. Someone who wants to travel, spend time with family, and pursue the things that matter most without worrying about whether their capital is being watched carefully.
Most importantly, someone who invests in people before they invest in products. Someone who needs to look a fund manager in the eye, understand his character, and believe that his interests are genuinely aligned before writing a check.
Real Assets. Real Peace of Mind.
Sleep well knowing your capital is secured by real assets, not market noise.
What This Means for You
The Deal Structure in Practice
Every note Blue Bay holds is in first-lien position on an investment property. We underwrite to conservative loan-to-value ratios. We are senior secured, which means we are first in line to recover capital if a borrower defaults. The property itself backs your investment.
I have spent more than a decade and deployed over 30 million dollars across more than 150 deals because I believe these structures work. I believe in them enough to put my own capital in every single one.
I will also be honest with you: no investment is without risk. Deals can underperform. Borrowers can face unexpected challenges. What I can tell you is that the structure we use, the underwriting discipline we maintain, and the co-investment commitment I make are all designed to protect capital first. Return second. Always in that order.
Proven discipline you can trust with your capital.
Built on discipline, not speculation, this track record reflects a consistent commitment to protecting capital first.
Years of deliberate, conservative underwriting
Aligned incentives through co-investment in every deal
Decisions guided by restraint, not unnecessary risk
A structure designed to preserve capital before pursuing returns
The result is a strategy that offers steady confidence in an environment where certainty is increasingly rare.
Disciplined underwriting designed to protect your capital first.
A Personal Invitation
If what you have read resonates, I would genuinely welcome a conversation. Not a sales call. Not a pitch. A real conversation about where you are, what you are trying to protect, and whether Blue Bay is the right fit for your situation. If it is not the right fit, I will tell you that honestly. If it is, we will both know it.
My capital is in every deal I manage. My interests are aligned with yours from day one. I am not going anywhere -- and I am genuinely interested in the people I work with.
Schedule a Conversation with Edwin
A real conversation about where you are, what you are trying to protect, and whether Blue Bay is the right fit. No pressure. Just honesty.
Important Disclosure:
This article is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Investing in private funds involves substantial risk, including the potential loss of principal. Past performance is not indicative of future results. Blue Bay Fund I is a private offering available only to qualified investors. Please review all offering documents carefully before investing.
With Honor,
Edwin D. Epperson III,
Manager & CEO
Soli Deo Gloria
