• Value-add equity fund with 20% target IRR
• Current 7.5% distribution issued quarterly
• The sponsor has claimed never lost investors’ money in their more than 10 years history
• Club negotiated to aggregate all club members’ investment and receive a Class B status if our total investment is over $1m. This will increase our preferred return from 7% to 8%, and the profit sharing from 60/40 to 80/20. (Details see below the tables 1&2)
• Fund III of this sponsor was on Fidelity platform for its wealthy clients. Fund IV will also be available on both Fidelity and Schwab. (Club: individuals need to be qualified by Fidelity/Schwab separately)
• Solid track record from this sponsor include:
  • Fund I recently fully exited with gross 47% IRR. It was named in June 2018 the #1 Value Add Real Estate Fund in North America by Preqin based on its IRR to investors. (Preqin is a leading provider of data and intelligence for the alternative assets market. It is highly respected and widely used in the industry for its comprehensive data and insights on private equity, hedge funds, real estate, infrastructure, and more).
  • Fund III is about 3 years with $120m in operating. It acquired 60 assets and is on track with its performance. Currently it yields 8.5% cash-on-cash. Recent Investor’s Day released that Fund III fund level projected return is 19.8% IRR and 2.8x MOIC
• Fund IV is scheduled to complete its fund-raising period by end of 2025, or when the fund hits $200m. Currently it’s at $65m. (Click here: CVCFIV Investment Overview Booklet)
  • Target net IRR 15-20% (increased from original 12-15% due to optimistic outlook in market and operations)
  • Preferred return from 7% to 9.5% (see at the bottom for different classes)
  • Current distribution is at 7.5% cash-on-cash, as of Q3 2024
  • Low leverage: buy assets using cash, or low LTV (less than 30% currently, Fund legal document allows 50% leverage at fund level)
  • Current average loan rate is 6% (all fixed rate)
  • Annual audit by CohnReznick, who is one of the top auditors for private investment
  • K-1 tax form with high depreciation benefit upfront
  • Audited NAV increased from $1000/unit in 2023 to $1066/unit by end of 2024. As per auditor’s suggestions, re-evaluation is done and adjusted on book on a quarterly basis.

How to invest: Club members PLEASE express your interests in this Fund IV by contacting us via email/phone/forum posting. We will share more documents from the sponsor and organize a webinar with the sponsor if there are enough interests.

• To be legally viable, a separate legal entity (LLC) will be formed solely for this investment, just like when you participate in any other syndication investment. A set of legal documents shall be signed before you wire the money.
• We aim for getting Class B status which requires min. $1m. However, to be economically viable, we need to have the aggregation of $1.5-$2m investment. The minimum investment for each individual investor is $50,000. You’ll be Class D if you invest $50k directly with sponsor. This is the value of this Club – We negotiate with sponsors and get a higher return for Club investors to invest together; WE DO NOT RECEIVE ANY COMPENSATION FROM THE SPONSOR, NOR DO WE PROFIT SHARE WITH INVESTORS.
• Each investor will pay 1% annual administrative fee (min. $625/year) to the Club to cover the expenses including but not limited to: accounting, tax, attorney, documentation, SEC filing, etc.
• Transparency: The Club is committed to maintaining the highest level of transparency. The original documents and financial/distribution statements from sponsors will be shared with all investors. Each member can easily understand their own share of financial benefits by deducting 0.25% (or $156.25, whichever is higher) per quarter from the sponsor’s distribution.
• The following Table 1 is the preferred distribution and waterfall for different fund classes; and Table 2 the illustration of investor’s potential return based on 15%, 20% and 25% fund level return.