Cobalt Funds LLC

Name

Cobalt Funds LLC

Legal name

Cobalt Funds LLC

Website

https://cobaltfundsllc.com

Company type

Private

Operating status

Operating

Headcount range

1–10 employees

Ownership category

akta.pro rank

Product category

Mortgage Note Investment Services

NAICS

Portfolio Management and Investment Advice (52394), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Mortgage Bankers & Loan Correspondents (6162), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Non-Performing Loan (NPL) / Loan Portfolio Acquisition Funds (FSANAKAG)

akta.pro secondary industries

Stressed / Rescue Financing Funds (FSANAKAE), Large-Cap / Sponsor Finance Direct Lending (FSANADAJ)

Keywords

• Mortgage note investments
• Trust deed acquisitions
• Secondary mortgage market
• Note portfolio management
• Real estate debt investing

Headquarters

HQ city

Irvine

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Mortgage Note Investment Returns: Cobalt Funds generates returns through acquiring performing and non-performing mortgage notes (1st, 2nd, and 3rd trust deeds) at risk-adjusted prices and managing them to maximize IRR while mitigating risk.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Cobalt Funds is an investment firm that acquires performing and non-performing mortgage notes (1st, 2nd, and 3rd trust deeds) directly from individuals, credit unions, local and national banks, and hedge funds in the secondary mortgage market. The firm applies a systematic 6-step due diligence and conservative valuation process, then manages acquired notes with the goal of preserving home ownership, delivering risk-adjusted returns to its investors.

Product overview

Cobalt Funds LLC operates as an investment firm offering a unified suite of services centered on the secondary mortgage market. The core offering is mortgage note investment services, where the firm acquires performing and non-performing 1st, 2nd, and 3rd trust deeds directly from private individuals, credit unions, banks, and hedge funds. This is supported by an Investor Portal for client access and transparency, and a structured 6-step Note Portfolio Investment Process that guides acquisition, due diligence, and asset management from start to disposition.

Differentiator

Problem solved

Functional benefit

Products and services

• Mortgage Note Investment Services Investment services focused on acquiring and managing performing and non-performing mortgage notes (1st, 2nd, and 3rd trust deeds) from individuals, credit unions, local and national banks, and hedge funds in the secondary mortgage market, delivering risk-adjusted returns to investors.
• Investor Portal Secure online portal allowing Cobalt Funds investors to access their accounts, view investments, and manage their portfolios with transparency at every stage of the investment process.
• Borrower Workout and Loan Modification Services Hands-on borrower outreach and workout strategies offered to homeowners with existing mortgage notes acquired by Cobalt Funds, providing flexible options that traditional banks cannot typically offer, with the goal of preserving home ownership.

Quantifiable outcome

• Risk-adjusted pricing based on borrower performance, location, and asset value
• +1 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Scale indicators7 records

Recent moves4 records

Expansion highlights4 records

Broad incumbents

• NewRez (formerly New Penn Financial): Large national mortgage originator and servicer that has historically acquired mortgage servicing rights and reperforming loan portfolios. Overlaps with Cobalt in mortgage note ownership and investor-facing loan products, but at much greater scale.
• Kondaur Capital Corporation: Larger institutional buyer and servicer of residential non-performing loans with capital markets securitization capabilities. Comparable asset class and servicing model, but operates at materially larger scale than Cobalt.
• Vericrest Financial: Acquires, manages, and securitizes reperforming and nonperforming residential mortgage notes. Overlapping asset class and institutional counterparty base, but broader and better-capitalized than a boutique buyer like Cobalt.

Emerging players

• NoteSchool: Educational platform and small-volume buyer serving individual investors entering the mortgage note space. Adjacent to Cobalt in customer base (smaller-scale individual note investors) rather than direct institutional competition.

Direct peers

• Lima One Capital: Private lender and mortgage note buyer that acquires and originates residential mortgage notes, with a focus on single-family rental and bridge loans. Closely comparable to Cobalt Funds in its mortgage-note-centric operating model and B2B institutional focus.
• Velocity Portfolio Group: Buys, manages, and trades mortgage note portfolios with workout and modification capabilities. Direct peer on both the acquisition and borrower-servicing side of the business.
• Aspen Funds: Acquires pools of performing and non-performing residential mortgage notes from banks and credit unions. Cobalt CEO Joey Lee previously worked at Aspen Funds, and the two operate nearly identical sourcing and underwriting models in the secondary mortgage market.
• Direct Note Solutions: Specializes in buying non-performing and performing mortgage notes nationwide from banks, credit unions, and individuals. Direct peer given overlapping acquisition channels and trust deed focus, with broader national reach than Cobalt.
• US Notes: Purchases performing, sub-performing, and non-performing mortgage notes nationwide from institutional sellers. Direct peer in sourcing channels and asset class.

Others

• Buchanan Street Partners: Real estate investment manager where Cobalt CFO Tammy Harpster previously managed $600M+ of commercial assets. Comparable in real estate fund management orientation, though Buchanan Street focuses on equity-oriented commercial strategies rather than mortgage notes.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks6 records

Key highlights5 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Cobalt Funds LLC