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Investors are constantly looking for reliable sources of passive income that can weather market volatility and uncertainty. One option that has proven its ability to do just that is the Ascent income fund from EquityMultiple, a high-yield investment vehicle that has delivered impressive returns to its investors, with a historic distribution yield of 12.1%.
The Ascent Income Fund is designed to generate stable income from senior commercial real estate debt positions, offering investors the security of real assets and the potential for attractive returns. With a lower minimum investment of just $5,000 for beginning investors, this fund is now more accessible than ever to a wider range of people looking to diversify their portfolios and increase their income streams.
One of the key benefits of the Ascent Income Fund is its focus on senior debt, which has payment priority and is secured by the underlying properties. This strategic approach helps limit risk and ensures greater stability of returns, even in challenging market conditions. The fund targets an average loan-to-value ratio of 65%, which provides a significant downside cushion in the event that property values ​​fall.
In addition to the attractive return, the Ascent Income Fund offers the flexibility of liquidity options, with redemptions possible from one year after the initial investment. This feature allows investors to adapt to changing market conditions and adjust their portfolios as necessary, without being locked into a long-term commitment.
The current macroeconomic environment has created a unique opportunity to invest in real estate debt, driven by rapidly rising interest rates and reduced competition from regional banks. The Ascent Income Fund is well positioned to benefit from this market disruption, leveraging EquityMultiple’s extensive mid-market experience and proven track record of success.
Since its founding in 2015, EquityMultiple has invested more than $500 million in more than 185 transactions, on behalf of a network of more than 40,000 investors. The company’s fully realized investments have delivered an impressive 17% net return to investors since the formation of the 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, aligning the interests of investors. The fund will also benefit from the expertise of EM Advisor, LLC, an EquityMultiple affiliate and registered investment advisor, as well as national third-party loan managers and EquityMultiple’s in-house asset management team.
Investors looking for a reliable and attractive income stream may find the Ascent Income Fund presents an attractive opportunity. With its focus on diversification, returns and liquidity, this fund can serve as a cornerstone investment for income-oriented investors looking to navigate the uncertainties in today’s market.
Click here for more information about the Ascent Income Fund.
This article Looking for a reliable return above 10%? This high-yield fund has returned more than 12% to its investors. Originally appeared on Benzinga.com
