BH3 FUND ADVISORS, LLC

Thesis

BH3 FUND ADVISORS, LLC, established in 2018 and headquartered in Fort Lauderdale, Florida, serves as the investment advisory arm for BH3 Management LLC. The firm focuses on real estate credit, development, and opportunistic equity strategies, with a particular emphasis on distressed debt acquisitions and UCC foreclosure proceedings. Their investment thesis is built on sourcing deeply impaired real estate through opaque debt positions and borrower negotiations, often acquiring defaulted mortgage notes and mezzanine debt. This legal-intensive approach, leveraging the founders' legal background, aims to secure assets below replacement cost. BH3 operates across the capital stack, investing in both debt and equity. Their strategies include Real Estate Credit (performing and non-performing credit investments, senior and mezzanine positions in secured loans, with at least two debt fund vehicles launched), Real Estate Equity Opportunities (opportunistic equity strategies and development projects), and Growth Equity through its BH3 Growth Equity ("BGE") arm, which provides capital to operating businesses in the real estate, construction, and infrastructure sectors. The firm's geographic scope is primarily concentrated on South Florida and the New York metropolitan area. BH3 typically deploys outside institutional capital alongside co-investment from the founders, structuring investments through discrete deal-level vehicles and longer-duration credit funds. As of December 31, 2025, BH3 managed approximately $584.7 million in regulatory Assets Under Management (AUM), comprising $509.7 million in discretionary AUM and $75 million in non-discretionary AUM. The firm manages pooled investment vehicles utilizing Section 3(c)(1) and/or Section 3(c)(7) exemptions. BH3 Debt Opportunity Fund I is one of their managed funds. Information on typical check size per investment deal is not explicitly detailed.