Basalt Capital

About Basalt Capital

Overview

Basalt Capital is the private investment office Fred Fellows uses to manage personal capital across technology platforms, healthcare services and provider organizations, and commercial real estate. The portfolio is structured with approximately equal capital allocation across these three pillars, though actual weights vary with opportunity flow and market conditions.

The office operates with a disciplined structured-finance approach, applying techniques developed across decades in capital markets including CMBS, credit-tenant leases, mezzanine financing, preferred equity, and sale-leaseback transactions to reshape risk-return profiles and enhance downside protection.

Most investments take the form of limited partnership interests in private equity or growth equity funds managed by experienced sponsors with whom we have long-standing relationships. Selectively, Basalt Capital participates as co-general partner or makes direct investments where Fred's capital markets experience adds strategic value.

Fred Fellows

Founder & Managing Principal

Fred Fellows is an entrepreneur and investor with deep experience across capital markets, commercial real estate development, and healthcare services. Over the past three decades, he has structured and executed investments spanning senior living facilities, multifamily properties, triple-net leased assets, physician practice platforms, risk-bearing healthcare organizations, and technology-enabled care delivery models.

His background includes originating and structuring credit-tenant lease transactions, CMBS conduit loans, mezzanine debt, and preferred equity positions across institutional-grade commercial real estate portfolios. In healthcare, Fred has participated as investor and board member in physician group consolidations, value-based care platforms, Medicare Advantage organizations, and specialty surgical center networks.

At Nomura Securities International in New York City, he was instrumental in managing $20 billion of new issue commercial mortgage-backed securities and trading $10 billion in CMBS. He founded Cargan Capital, securing sponsorship for a fund targeting high-yield CMBS investments with returns exceeding 21%.

Basalt Capital reflects Fred’s mandate to allocate family capital with a multi-decade compounding horizon, balancing technology platforms with recurring revenue models, healthcare businesses benefiting from favorable demographics and regulatory tailwinds, and income-producing real estate enhanced by structured finance overlays.

  • Capital Markets
  • Commercial Real Estate
  • Healthcare Investing
  • Structured Finance
  • Development & Construction

35+

Years Experience

$10B+

Transaction Value

2008

Founded

Executive Profile & Comprehensive Career Analysis

Executive Summary

Frederick L. Fellows stands as a prominent commercial real estate investor, structured finance expert, and principal investor, presiding over Basalt Capital LLC as Founder and Managing Principal—a sophisticated family office investment firm managing direct equity and debt positions across commercial real estate, private equity, and select alternative assets. An honors graduate of the University of Missouri (1983-1987) with a B.S. in Economics, Fellows brings over 35+ years of professional experience spanning commercial real estate brokerage, structured finance, CMBS trading, proprietary trading, and family office investment management.

His professional expertise encompasses commercial mortgage-backed securities (CMBS) origination and trading, real estate acquisition and disposition advisory, distressed debt repositioning, opportunistic equity investing, and complex structured finance transactions—generating consistent returns through disciplined underwriting, capital preservation focus, and proprietary deal sourcing networks developed across four decades of industry engagement.

Throughout his professional career, Fellows has been involved in transaction analysis, underwriting, and investment deployment exceeding $10+ billion in aggregate value across commercial real estate debt, equity, and structured finance vehicles. Rather than emphasizing management of assets under administration (AUM) common among institutional firms, Fellows’ value creation derives from direct investment and advisory approach—identifying mispriced assets, structuring complex transactions, and deploying capital alongside sophisticated operators and institutional partners.

Current Professional Status:
  • Basalt Capital LLC: Founder & Managing Principal (April 2008–Present)
  • Investment Focus: Commercial real estate debt/equity, private equity, structured finance, alternative assets
  • Capital Deployment: Typically $1–25 million per transaction; co-investment partnerships on larger deals
  • Portfolio Composition: Diversified across seniors housing, multifamily, hospitality, healthcare, 3N leased properties, credit tenant leases, CMBS bonds, SPACs, ethanol plants
  • Operational Methodology: Disciplined direct investment with emphasis on capital preservation, proprietary underwriting, and risk-adjusted returns
  • Track Record: 35+ years of consistent performance in complex transaction analysis and capital markets; known for “executing the most difficult and complex transactions”
Entrepreneurial Genesis (1983–1988)

Frederick L. Fellows launched his professional career immediately upon completing his undergraduate degree at the University of Missouri (1983-1987, B.S. in Economics). Rather than pursuing traditional corporate employment, Fellows demonstrated early entrepreneurial inclination by establishing his first venture while still in college.

ComputerLand – Columbia, Missouri (September 1983 – August 1987)

During his university years, Fellows joined ComputerLand as a Senior Sales Consultant, focusing on corporate and government technology sales. He successfully established a branch office in Jefferson City, Missouri, and achieved national top producer status—demonstrating early business development capability and client relationship excellence.

WDCW 97.7 FM – Sturgeon Bay, Wisconsin (September 1987 – June 1988)

Immediately following his college graduation, Fellows co-founded WDCW 97.7 FM, an FM radio station in Sturgeon Bay, Wisconsin. This venture represented a sophisticated early entrepreneurial undertaking, requiring FCC permit acquisition and regulatory navigation, business plan development and financing procurement, operational startup and infrastructure development, staffing and management, and marketing strategy development for competitive radio market.

Fellows established profitable operations within three months—an exceptional achievement for startup ventures. The station achieved operating profitability through innovative person-less broadcast operations strategy, demonstrating operational efficiency and creative problem-solving.

Commercial Real Estate Brokerage – CB Richard Ellis (1988–1993)

In September 1988, Fellows transitioned into commercial real estate, joining CB Richard Ellis (CBRE) in St. Louis as a Senior Associate. This position marked a deliberate shift from entrepreneurship toward professional real estate industry engagement, establishing foundational expertise in corporate advisory and investment sales.

  • Corporate tenant advisory and relocation services
  • Investment sales brokerage for office properties
  • Institutional investor representation
  • Top Producer Status: Three consecutive years (1989–1993)
  • Represented major corporate tenants (including Microsoft)

In September 1993, Fellows made the transformative career transition into structured finance, joining Nomura Securities International in New York City. This move positioned him at the epicenter of the emerging CMBS (Commercial Mortgage-Backed Securities) market during the 1990s boom—a pivotal period that fundamentally shaped modern commercial real estate finance.

Phase 1: Senior CMBS Trader (September 1993 – May 1997)

Fellows joined Nomura as the CMBS market was nascent but rapidly expanding. His initial role focused on CMBS trading and new issue distribution. He was responsible for new issue CMBS origination, distribution, and syndication, high-yield CMBS product sales and trading, and direct management of institutional client relationships across North America, Europe, and Middle East.

  • Nomura CMBS Trading Desk Ranked #1 by Institutional Investors Magazine (1996 & 1997)
  • Placed over $19 billion of new issue CMBS in the U.S., Europe, and Middle East markets
  • Directed sales of over $1.8 billion of below investment grade (high-yield) CMBS
  • Directed and managed the ONLY public offering of high-yield CMBS in 1997—a historic market milestone
  • Achieved 45% penetration of high-yield bonds with new account relationships
  • Directed first roadshow for CMBS bonds broadcast on the Internet
Phase 2: Director, Structured Finance Group (May 1997 – January 1999)

In May 1997, Nomura expanded Fellows’ responsibilities, creating a new Structured Finance Group focused on providing capital to CRE origination platforms. He placed warehouse lines exceeding $800 million (committed and profitable) and established relationships with major CRE origination platforms.

Combined Nomura Impact:
  • $20 billion in new issue CMBS origination and distribution
  • $19 billion in CMBS sales placement
  • $1.8 billion in high-yield CMBS syndication
  • $800+ million in warehouse lending
  • Director-level position at major global investment bank
  • #1 ranked CMBS trading desk by institutional investors
Cargan Investment Management LLC (January 1999 – March 2001)

In January 1999, immediately following the Russian financial crisis and LTCM collapse that had created substantial dislocations in credit markets, Fellows founded Cargan Investment Management LLC. The firm was established with a specific thesis: identifying and acquiring mispriced high-yield CMBS in the distressed secondary market.

  • Sponsorship: JE Roberts (major CMBS sponsor providing institutional credibility)
  • Capital raised: $100 million from private institutional investor
  • Portfolio deployment: Purchased over $275 million of commercial mortgage backed securities
  • Net leveraged returns: 12% current yield during holding period
  • Portfolio IRR: 22% to investors (exceeding initial target of 21% IRR)
  • Hold period: Approximately 6 years (1999–2005)
Cargan City LLC (July 1999 – September 2000)

Concurrently with Cargan Investment Management, Fellows founded Cargan City LLC, a technology-focused venture addressing fragmentation in the CRE finance origination market. Team of 30+ professionals across 5 offices. Developed MortgageSelector.com as keynote product for web-based origination with participation by 35 major lenders. Sourced, negotiated, and closed over 35 strategic partnerships.

SWS Securities – Structured Finance Trading (April 2001 – December 2007)

In April 2001, Fellows joined Southwest Securities (SWS) in Chicago as Managing Director and Senior Vice President, establishing and leading a proprietary trading operation focused on complex structured securities.

  • Traded $4+ billion of competitively bid secondary CMBS, ABS, and mortgage loans
  • Average annual revenue/profit: Over $5 million in trading revenue
  • Consistent profitability across 6+ year tenure (2001–2007)
  • Maintained investor relationships with 100+ institutional accounts
  • Developed proprietary trading systems leveraging third-party resources
  • Niche specialization: Less liquid and complicated structured securities

In March 2008, at the precise nadir of the financial crisis—as Bear Stearns collapsed, credit markets seized, and institutional capital fled risk assets—Fellows founded Basalt Capital LLC. The firm was capitalized with personal capital and established as a direct investment vehicle focused on identifying and deploying capital into distressed or mispriced assets across commercial real estate and structured finance.

Core Investment Philosophy:;
  • Capital preservation as primary objective with alpha generation as secondary goal
  • Crisis-period positioning: Conviction to deploy capital when others retreat
  • Fundamental analytical rigor: Deep underwriting and asset analysis
  • Long-term orientation: 5–10+ year investment horizons
  • Principal alignment: Personal capital deployed alongside LP capital
  • Diversification: Multiple asset classes, geographies, and strategies
Investment Strategy & Capital Deployment:

Commercial Real Estate – Debt & Equity:

  • Sourced, underwrote, priced, and purchased $500 million US CMBS portfolio from JP Morgan in 2008
  • Purchased dozens of CMBS during financial crisis bottom (2009)
  • Direct lending on commercial real estate properties, first mortgages, mezzanine debt, and preferred equity
  • Triple-net leased properties across multiple industries

Private Equity & Operating Platforms:

  • Recovery Ways – Behavioral Health Platform
  • Grace Management – Senior Living Operations
  • Briq – Construction Financial Automation
  • P3 Healthcare Partners (Nasdaq: PIII) – Public Healthcare Platform
  • Thrive Pet Healthcare – Veterinary Platform
Advisory & Transactional Activity (2008–2025):
  • $36 Million Retail CRE Discounted Payoff (2020)
  • $290 Million Hospitality Portfolio Refinance (2019)
  • $265 Million CRE Debt Placement – Tel Aviv Stock Exchange (2018)
Current Portfolio (Estimated as of December 2025):</h6 > Estimated $95–215 million in diversified holdings with a blended return profile of 10–15% across portfolio. Active management across CMBS/structured finance, senior living equity, multifamily preferred equity, credit tenant leases, healthcare/veterinary, private equity fund allocations, and alternative assets.
University of Missouri (1983–1987)
  • B.S. in Economics
  • Foundation for quantitative and analytical thinking
Core Competencies
  • Structured Finance & CMBS Expertise (35+ Years)
  • Commercial Real Estate Advisory (35+ years spanning brokerage, origination/trading, and direct investment)
  • Capital Markets Access & Institutional Relationships built over decades
  • Distressed Asset Identification & Valuation
  • Direct Investment & Principal Deployment
  • Portfolio Management & Risk Management
Technology & Analytical Capability
  • Commercial real estate financial underwriting
  • Advanced proficiency in bond structuring software (Bloomberg, Intex, Trepp)
  • Extensive proprietary code development for pricing and trading securities
  • Database development for portfolio tracking and analytics
  • Technology platforms for origination and underwriting