Benzinga and Yahoo Finance LLC may earn commissions or revenue from certain articles through the links below.
Investors are constantly looking for reliable sources of passive income that can withstand market volatility and uncertainty. An option that has proven its ability to achieve this objective is the Ascent Income Fund of EquityMultiple, a high yield investment vehicle that has generated impressive returns for its investors, with a historic distribution yield of 12.1%.
The Ascent Income Fund is designed to provide stable income from senior commercial real estate debt positions, providing investors with the security of real assets and the potential for attractive returns. With a reduced minimum investment of just $5,000 for new investors, this fund is now more accessible than ever to a wider range of people looking to diversify their portfolios and increase their sources of income.
One of the key advantages of Ascent Income Fund is its focus on senior debt, which enjoys payment priority and is secured by the underlying properties. This strategic approach helps mitigate risks and ensure greater stability of returns, even in difficult market conditions. The fund targets an average loan-to-value ratio of 65%, providing a substantial cushion of protection in the event of a decline in property values.
In addition to its attractive yield, the Ascent Income Fund offers the flexibility of liquidity options, with redemptions available from one year after the initial investment. This feature allows investors to adapt to changing market conditions and adjust their portfolios as needed, without being tied down by a long-term commitment.
The current macroeconomic environment has created a unique opportunity for invest in real estate debt, driven by the rapid rise in interest rates and less competition from regional banks. The Ascent Income Fund is well positioned to capitalize on this market dislocation, leveraging EquityMultiple’s extensive middle market experience and track record of success.
Since its inception in 2015, EquityMultiple has invested over $500 million in over 185 transactions, on behalf of a network of over 40,000 investors. The company’s fully realized investments have produced an impressive 17% net return for investors since the formation of its investment committee in 2019.
The Ascent Income Fund is managed by EM Ascent Fund I GP, LLC, which is majority owned by EquityMultiple and minority owned by an institutional investor. GP affiliates will invest $10 million in the fund, ensuring alignment of interests with investors. The fund will also benefit from the expertise of EM Advisor, LLC, an EquityMultiple subsidiary and registered investment advisor, as well as national third-party loan servicers and EquityMultiple’s in-house asset management team.
Investors looking for a reliable and attractive income stream might find that the Ascent Income Fund presents an interesting opportunity. With a focus on diversification, yield and liquidity, this fund can be a core investment for income-oriented investors looking to weather the uncertainties of today’s market.
Click here for more details on Ascent Income Fund.
This item Are you looking for a reliable yield above 10%? This high-yielding fund paid out more than 12% to its investors originally appeared on Benzinga.com
