What barriers to entry exist in the Freddie Mac K-Deal market?

The Freddie Mac K-Deal market has several material barriers to entry, many created by Freddie Mac to ensure that only the best buyers are active in the space. These barriers include:

Operational expertise: Freddie Mac requires the buyer of these investments to be an expert operator of multifamily investments.
Freddie Mac borrower: To ensure the buyer is an operational expert and familiar with how Freddie Mac works, the most prolific bond buyers are also active borrowers.
Investment size: The equity required to buy the target tranche of K-Deals is from $25 million to $65 million, which is a big check for most operational experts. The investment size, plus the requirement to be an operational expert, eliminates more than 90% of the potential buyers of the bonds.
Controlled entry: Two investment banks control 80% to 85% of the secondary market, and Freddie Mac controls 100% of the original issues. The investment banks and Freddie Mac conduct substantial due diligence to ensure the bond buyers are highly qualified.