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Alternative real estate lender 3650 Capital announced Thursday a $215 million investment from Mubadala Investment Company and the California State Teachers’ Retirement System (CalSTRS)—a capital boost that underscores growing confidence in alternative lending amid a shifting financial landscape.

The fresh capital, secured with guidance from Sidley Austin LLP, will be strategically allocated across 3650 Capital’s lending programs to fuel growth in long-term fixed-rate financing, short-term value-add investments, and distressed asset solutions, according to the company’s statement.

Strategic Deployment: Betting on Alternative Lending

3650 Capital, headquartered in Miami, Florida, operates at the forefront of the alternative commercial real estate financing space. The firm will deploy the funds across two core strategies:

• Stable Cash Flow Strategy – Providing long-term, fixed-rate loans for stable commercial properties.

• Real Estate Credit Solutions Strategy – Targeting short-term, value-add financing, traditional loans, and single-asset borrower solutions.

Additionally, CalSTRS' investment will help bolster 3650’s Special Situations Investment Strategy, which focuses on distressed real estate deals, loan acquisitions, and complex capital restructures.

"As we enter 2025, alternative capital providers are seeing an abundance of opportunities to finance real estate projects as traditional banks scale back lending," said Toby Cobb, co-founder and managing partner of 3650 Capital. "Our proven expertise, cycle-tested approach, and all-in-one lending platform put us in a unique position to capitalize on these market shifts."

A Growing Powerhouse in Alternative Finance

3650 Capital has rapidly expanded its influence as a lender, servicer, and capital solutions provider. With offices in New York, Los Angeles, Dallas, Atlanta, Nashville, and Washington, D.C., the firm is aggressively scaling its portfolio and investment footprint.

The latest commitment follows a $430 million capital infusion in Q3 2024, where CalSTRS and two additional institutional investors doubled down on 3650’s lending strategies.

A Vote of Confidence from Institutional Investors

Jonathan Roth, co-founder and managing partner at 3650 Capital, highlighted the deep trust from world-class institutional partners as a testament to the firm’s track record of strong portfolio performance and consistent growth.

"We are honored to receive these additional commitments from CalSTRS and Mubadala, two institutions that have long championed our investment philosophy," Roth said. "Their support enables us to continue deploying flexible capital solutions for borrowers and expanding into new U.S. markets in 2025 and beyond."

What This Means for Commercial Real Estate

As traditional banks tighten lending amid economic uncertainty, institutional investors like Mubadala and CalSTRS are stepping in to fill the void—redirecting capital into alternative lenders that can act swiftly and adapt to complex financial landscapes.

With $215 million in new backing, 3650 Capital is poised to shape the next wave of real estate lending, seizing opportunities that conventional financial institutions may hesitate to touch.