The primary reason we are launching the Summit Fund is simple: diversification. Until now, investors seeking exposure to B-note positions have done so on a contributory basis — committing capital to an individual facility. That model works, but it concentrates risk. A pooled fund changes that fundamentally. By investing across a portfolio of subordinated positions, investors get the same enhanced yield profile with materially reduced risk. That is a better outcome, and it is the core logic behind this fund.

The B-note position — sitting behind the A-note in the capital stack — carries more risk but delivers a meaningfully higher return. Investors with the right risk appetite have sought out those positions and been rewarded for it. The Summit Fund makes that opportunity more accessible and better structured.

It is also worth being clear about what our A-note/B-note structure is not. It is fundamentally different to traditional mezzanine lending or second mortgages. In a typical second mortgage arrangement, two separate lenders hold two separate mortgages over the same property — a first mortgage and a second mortgage registered behind it. They are different lenders with different mandates, different risk tolerances, and often competing interests. That structure creates real management complexity and misalignment.

Our A and B notes are secured by the same first mortgage. There is one facility, one security instrument, and one manager. The subordination between the A-note and B-note is contractual — held within the same structure rather than across two competing lenders. That means aligned incentives, central management, and a coherent response if challenges arise. It also means our facilities are typically written at lower LVRs than traditional second mortgage structures, which provides an additional layer of protection across the whole facility.

The Summit Fund is the missing piece that completes our product suite, and I want to be direct about how I see the Ark family of funds sitting together.

Our Bedrock Fund has always been the foundation — a blended portfolio with approximately 85% exposure to first mortgage positions and 15% to subordinated debt. It’s designed for investors who want strong risk-adjusted returns with the comfort of predominantly senior security. Bedrock has performed well and remains a core part of our offering.

The Summit Fund sits at the other end of the risk-return spectrum. It is 100% subordinated — pure B-note exposure across a diversified portfolio. For investors who understand subordinated debt and are deliberately seeking enhanced yield, Summit is purpose-built for them.
And shortly, we will also be launching a pure first mortgage fund — 100% senior secured, for investors whose mandate or preference is strictly first mortgage exposure. That product will complete the picture.

So when I step back and look at where we will be as a business in the near future, I see something genuinely compelling: investors will be able to choose exactly where they want to sit in the debt stack. First mortgage only. Blended. Or high yield subordinated. Each fund is purpose-built, clearly positioned, and — importantly — all backed by the same rigorous underwriting, credit discipline, and asset management that has defined Ark since we started.

For those who still prefer a direct, deal-by-deal approach, contributory investing through the Ark Wholesale Mortgage Fund remains fully available. We’re not taking anything away — we’re adding to the choice.

Investors can now choose exactly where they want to sit in the debt stack — and that is a genuinely powerful thing.

The Summit Fund is not for everyone — and that is entirely by design. It is for sophisticated wholesale investors who understand subordinated credit, accept that the B-note absorbs losses ahead of the senior lender, and are seeking enhanced yield in return for that risk. The risk is real, but it is risk we understand and manage carefully.

Launching the Summit Fund is a significant moment for us. We have spent over a decade building a reputation as a disciplined, principled private real estate credit manager. Every deal we’ve written, every facility we’ve structured, every investor conversation we’ve had has contributed to the depth of expertise that now underpins this fund.

The Summit Fund is a testament to the fact that our business has matured. We have the track record, the team, and the platform to offer investors genuine choice across the debt stack — from the safety of senior secured lending all the way to the enhanced returns of subordinated credit.

If you are an investor seeking enhanced yield and you have the sophistication and risk appetite to match, I’d encourage you to have a conversation with our Distribution team. The Summit Fund may be exactly what you’ve been looking for.