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What is a Debt Fund?

Debt funds can help accredited investors build resilient, diversified portfolios. Here’s how they work.

A professionally-managed debt (or credit) fund pools investor capital from accredited investors into a portfolio of loans that the fund directly negotiates with, and extends to, middle-market borrowers.

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Dean Kirkham

"In lending, our greatest strength isn't just the deals we fund—it's the discipline to say 'no' to the ones we don't. By maintaining a strict senior-secured position and conservative LTVs, we ensure that our investors' capital isn't just working; it's protected by a massive equity cushion and collateral we could follow through on."

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Dean Kirkham

President of Lending | DLP Capital

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Pro Tips

These are some high-level questions investors ask when doing due dilligence on a debt fund.

A debt fund (also known as a credit fund) is an investment vehicle that pools money from accredited investors that is then aggregated and invested into fixed-income credit instruments, like real estate-backed mortgages, corporate bonds, or government debt.

A debt fund has the potential to make money primarily through interest income generated by the fund’s debt offerings. Some funds may also earn additional income from origination or underwriting fees, which may be paid upfront or throughout the life of the loan by the borrower.

Debt investors can earn consistent income and are first in line for repayment, which can create a more predictable risk-return profile.

According to research from the Federal Reserve, debt funds that engage in direct lending have, as a cohort, historically generated higher returns than leveraged lending or public debt funds.5

Yes. You can withdraw money from a publicly traded debt fund by simply selling your ETF or mutual fund shares. If you’re invested in a private debt fund, you can redeem your investment, either in whole or in part, by providing notice to your fund manager, depending on the structure of the individual fund. 

Unlike many private funds that lock up capital for years, DLP Capital’s credit funds offer quarterly liquidity with just 90 days’ notice—giving investors meaningful access to their capital without sacrificing the benefits of private debt investing.

A Proven Track Record

With over 20 years of work trying to solve the affordable housing crisis and creating wealth and prosperity for our partners and investors, DLP Capital is creating housing, jobs, and prosperity for families across America—and we’re just getting started.

4,000

Current Investors1

100K+

Current Residents2

$699M+

2025 Total Revenue3

$5.5B+

Assets Under Management4

20 Years of Impact

See how DLP Capital evolved from a small Pennsylvania startup into one of the fastest-growing private companies in America by focusing on a singular problem: the workforce housing crisis.

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