EquityMultiple, a leading real estate investment platform, today announced a significant milestone for its Ascent Income Fund, a private real estate debt fund that targets compelling income from senior CRE loans. The Ascent Income Fund has now garnered over $25 million in investor interest. This achievement underscores the fund’s growing popularity among accredited investors seeking stable and attractive returns in the private real estate debt market. As of the end of Q1, 2024, the Ascent Income Fund had delivered 10.83% net historical distributed yield to investors.
A Timely Investment Strategy
The Ascent Income Fund launched at a pivotal moment in real estate capital markets. Since mid-2022, market volatility and rapidly rising interest rates have created a unique landscape for real estate debt investments. The Federal Reserve’s rate hikes have pushed benchmark interest rates to their highest levels since 2001, directly enhancing the returns from real estate loans which are tied to these benchmarks. Concurrently, the tightening of balance sheets among regional and mid-sized banks has reduced competition in real estate lending, opening more opportunities for private CRE lenders like the Ascent Income Fund.
“The early success and popularity of the Ascent Income Fund shows how strong the current investment thesis is. This fund is designed to provide stable and attractive returns in a market environment that favors real estate debt investments,” said Charles Clinton, CEO of EquityMultiple.
Diversified and Secure Investment Approach
The Ascent Income Fund provides accredited investors with diversified exposure to U.S. commercial real estate loans, primarily focusing on first lien debt investments in the middle market. This focus aims to mitigate risk and provide greater stability of returns. The fund’s strategy includes diversification across borrowers, geographies, and property types, ensuring a balanced and secure investment portfolio. Additionally, the fund’s structure allows investors to receive quarterly income distributions or reinvest dividends for compounded returns, with liquidity options available starting one year after investment.
High Potential in a ‘Higher for Longer’ Interest Rate Environment
In the current ‘higher for longer’ interest rate environment, the Ascent Income Fund represents a timely opportunity for investors. Higher interest rates drive higher returns in real estate lending, while the pullback of regional banks from the market creates more lending opportunities for private debt funds. The fund leverages EquityMultiple’s extensive experience in the middle market, where it has facilitated over $6 billion in real estate transactions and developed a robust process for sourcing, vetting, and managing investments.
EquityMultiple is committed to democratizing access to high-quality commercial real estate investments. By combining technology and traditional real estate investment practices, EquityMultiple provides accredited investors with seamless access to professionally managed investments. The Ascent Income Fund exemplifies this commitment by offering a structured, diversified, managed investment vehicle that aligns with broader market trends and investor needs.
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