Our Investment in Rabbet

Riverside Acceleration Capital (RAC) is proud to announce our recent investment in Rabbet, an Austin-based company and a leading provider of construction finance software for real estate developers and lenders.

Traditionally, managing the financing of a commercial real estate portfolio has been a largely manual process, requiring tracking and reconciling numerous costs and documents, including invoices, vendor contracts, and change orders – on both sides of a transaction as lenders manage their disbursements and borrowers look to meet their requirements. The process has not only led to inefficiencies, but also to data entry errors, project delays, slow payments, and increased risk for lenders, developers, and contractors. A 2021 survey by Rabbet found that 70% of developers still use spreadsheets, while 36% expressed concerns over how much of their process relied on Excel.

Rabbet reduces the need for spreadsheets by providing an intelligent financial management solution that helps real estate developers and lenders track their data in real time. The innovative platform offers developers the tools to help organize and index their project documents, contextualize anticipated cost data, model budget spending forecasts, and package this data into shareable loan draws and investor reports. Lenders can then use the same platform to better understand the complete picture and risk profile of a real estate portfolio, automate covenant compliance checks, and centrally manage inspections and approval workflows.

The result is a streamlined construction finance process that helps enable both developers and lenders to make better decisions in real time.

As of May 2023, Rabbet is used to manage over $40B in project capital, and its customers include Berkadia, Stream Realty, AIG, and Kairoi Residential. On average, customers report 75% less time managing draws and obtaining funding three days faster, thanks to the accelerated process.

In our view, Rabbet is well positioned for growth and addresses a very real – and very costly – problem currently facing the construction economy. Additionally, we believe the inherently synergistic nature of a platform that serves both developers and lenders and the company’s strong momentum bode well for what’s to come, and we look forward to supporting the team as they continue growth and expansion.

To learn more about Rabbet, visit www.rabbet.com.