Northmarq Fund Management Acquires Thirdline Capital Management, Adding Registered Interval Fund to Investment Platform

MINNEAPOLIS — Northmarq Fund Management announced Sept. 21, 2026, the acquisition of Thirdline Capital Management, LLC, a Richmond, Virginia-based SEC-registered investment adviser that manages the Thirdline Real Estate Income Fund (TREIX), a non-diversified registered closed-end interval fund focused on commercial real estate credit.

The transaction adds a publicly registered fund vehicle to Northmarq Fund Management's existing private fund platform, broadening the firm's reach to individual investors, wealth managers, and institutional clients through national custodial platforms.

What the Deal Adds to Northmarq Fund Management

Northmarq Fund Management, founded in 2002 as Morrison Street Capital and rebranded following its acquisition by Northmarq in 2024, manages debt and equity capital across the United States with a focus on small-balance and mid-market commercial real estate. The division reported regulatory assets under management of approximately $541.3 million as of its March 30, 2026 Form ADV filing, with $534.5 million managed on a discretionary basis.

The division currently operates several private funds, including the Morrison Street Preferred Equity Opportunities Fund, L.P., which has invested in a portfolio with a total cost of $395 million; the Northmarq Fund Management – Mortgage Program, L.P., with a portfolio total cost of $52 million; and the Northmarq Equity Opportunities Fund, L.P., with a portfolio total cost of $27.3 million across multiple property types.

By acquiring Thirdline Capital Management, LLC, Northmarq Fund Management gains a registered fund platform that complements its private fund business and expands its capacity in income-oriented investments, including mezzanine loans, B-notes, and real estate securities.

"This acquisition builds on Northmarq's established investment management business and represents an important step in our continued growth," said Rance Gregory, president and CEO of Northmarq Fund Management. "By adding the Thirdline team and TREIX to our platform, we are broadening the ways we connect investors with commercial real estate opportunities, while enhancing the breadth of our capital market solutions, and expanding our capacity in the income-oriented investing space."

About Thirdline Capital Management and TREIX

Thirdline Capital Management, LLC was founded in 2021 and operated as an SEC-registered investment adviser serving as the investment adviser to TREIX. The fund is structured as a continuously offered, non-diversified closed-end interval fund under the Investment Company Act of 1940. Its shares are not listed on any securities exchange, and the fund offers quarterly repurchases of at least 5% of its outstanding shares, making it illiquid beyond that program.

TREIX's strategy centers on direct commercial real estate credit, including investments in mezzanine loans, B-notes, and private real estate credit funds, alongside allocations to public REIT securities and options overlays designed to provide income and limit downside volatility. The fund's top 10 holdings have accounted for roughly 55% to 63% of portfolio assets, reflecting its non-diversified classification. As of June 30, 2026, TREIX reported a one-year total return of approximately negative 1.34% and a since-inception annualized return of approximately 4.42%, with a cash distribution rate of approximately 7.76% annualized, paid quarterly.

Charles Hutchens, Managing Director of Thirdline Capital and Portfolio Manager of TREIX, commented on the transaction: "We are excited to join Northmarq Fund Management. We are impressed by Northmarq's national platform and believe it can benefit TREIX shareholders by growing our capabilities in sourcing, underwriting, and asset management of quality commercial real estate investments."

Transaction Background and Structure

Northmarq Fund Management entered into an agreement on July 28, 2026, to acquire all outstanding interests of Thirdline Capital Management, LLC, contingent on shareholder approval. A proxy statement was filed September 11, 2026, ahead of the September 21 announcement.

For TREIX shareholders, the acquisition is intended to grow and further diversify the fund's portfolio across geography, property types, and investment types, with a stated focus on maximizing dividend growth and stability. Northmarq Fund Management's national sourcing and underwriting infrastructure is expected to support that objective.

Thirdline Real Estate Income Fund is distributed by Distribution Services, LLC, based in Portland, Maine. Distribution Services, LLC and Northmarq Fund Management are not affiliated.

Northmarq's Broader Platform

Northmarq is one of the largest privately held commercial real estate firms in the United States, operating more than 50 offices nationwide. The firm manages a loan servicing portfolio of more than $80 billion and has completed $91.3 billion in transactions over the past four years. Its services span debt, equity, investment sales, loan servicing, and fund management across a range of property types.

The acquisition of Thirdline Capital Management, LLC represents the latest step in Northmarq's evolution as a diversified capital markets firm and investment manager, combining its private fund business with a registered fund platform designed to reach a wider investor base.

Investors should carefully consider TREIX's investment objectives, risks, charges, and expenses before investing. The fund's prospectus is available at www.thirdlinefunds.com. An investment in the fund involves a high degree of risk, including the possible loss of principal. The fund may not be suitable for all investors.