BAM Preferred Credit Fund review: steady income, mostly from BAM’s own deals
BAM Capital’s open-ended credit fund invests mainly as preferred equity in apartment communities BAM itself owns and operates, targeting 8% monthly distributions. We reviewed the strategy, the early portfolio and the people running it.
An experienced multifamily operator offering monthly income with priority over common equity. But the fund primarily invests in BAM’s own properties, which creates a conflict of interest, it held only two investments as of late 2025 against a $1 billion target, and its marketing promises capital preservation and security that no private fund can guarantee.
What the fund is
The BAM Preferred Credit Fund is an open-ended multifamily credit fund. It makes preferred equity investments, which sit above common equity and below the mortgage, primarily in apartment communities BAM Capital owns and operates, and can also buy the most subordinate slice of multifamily mortgages, known as the B-piece. It targets an 8% cash yield paid monthly and a 10–12% total return, with a $250,000 minimum and a $1 billion target size. One listing shows a two-year target hold.
As a private placement, full terms are in the offering documents. Marketing describes the fund as created for qualified purchasers in one place and for accredited investors in another; confirm eligibility with BAM.
Leadership
- Ivan Barratt, Founder and CEO of BAM Capital and The BAM Companies, founded in 2010 in the Indianapolis area.
- Tony Landa, Chief Investment Officer of BAM Capital.
- Ben Cotton, Vice President of Investor Relations.
BAM reports more than 9,000 apartment units acquired and about $1.73 billion of transactions. We reviewed its Multifamily Growth Fund V separately.
Portfolio so far
As of December 2025, the fund held two preferred equity investments: Camden Park and Hayden Flats, the latter added that month. BAM said the Hayden Flats investment was structured for downside protection and consistent current pay.
The related-party question
Because the fund invests mainly in BAM’s own properties, BAM sits on both sides of each deal: it sets the terms the credit fund receives and benefits as the equity owner. Preferred equity can stabilize BAM’s equity deals, but investors should ask how terms are priced, who approves them, and how conflicts are resolved if a property struggles.
Claims versus records
| Claim | Source | Status | What we found |
|---|---|---|---|
| Preservation of capital; a secure investment vehicle | BAM marketing | Overstated | Preferred equity can lose value if properties underperform |
| Targeted 12% total return | BAM landing page | Varies | Listed as 10–12% elsewhere |
| $1 billion fund | BAM marketing | Target | Two investments as of December 2025 |
Key risks
- Related-party conflicts in pricing and workouts.
- Concentration in a few properties early on.
- B-piece risk: the first loss position in a mortgage.
- Multifamily market and interest rate risk.
Strengths and concerns
Strengths
- An experienced, vertically integrated operator.
- Monthly income with priority over common equity.
- An open-ended structure.
Concerns
- Investing mainly in the sponsor’s own deals.
- An early, concentrated portfolio.
- Capital preservation marketing.
- A high $250,000 minimum.
Who it suits
Possible fit: high-net-worth investors already comfortable with BAM who want monthly multifamily income.
Think carefully: investors who want credit exposure independent of a single sponsor’s equity deals.
Questions to ask
- How are preferred equity terms set when BAM is on both sides?
- What are the redemption terms?
- What fees does the fund pay BAM?
- What happens to the fund if a BAM property needs a capital call?
What would change our verdict
- Independent oversight of related-party investments;
- a larger, diversified portfolio;
- marketing without preservation promises.
Verdict history
October 15, 2026 · Initial review · Mixed (6.3)
Sources
- BAM Preferred Credit Fund (BAM Capital)
- BAM Capital introduces the BAM Preferred Credit Fund (BAM Capital)
- BAM Preferred Credit Fund listing (Benzinga)
- BAM Capital adds Hayden Flats to Preferred Credit Fund (PR Newswire, December 2025)
About this review
Investors Verdict is independent. We have no affiliate, referral or business relationship with BAM Capital or The BAM Companies or any company mentioned, and no payment of any kind affects our verdicts.
This review is based on public records, court filings, news reports, company materials and published sources as of the date shown. Claims and allegations are attributed to their source. Verdicts and scores are our opinion based on the facts disclosed above, using our published review method. This review is not financial, legal or investment advice.