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Investors are constantly seeking 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 been delivering impressive returns to its investors, with a historical distribution yield of 12.1%.
The Ascent Income Fund is designed to provide stable income from senior commercial real estate debt positions, offering investors the security of real assets and the potential for compelling yields. With a reduced minimum investment of just $5,000 for first-time investors, this fund is now more accessible than ever to a wider range of people looking to diversify their portfolios and boost their income streams.
One of the key advantages of the Ascent Income Fund is its focus on senior debt, which enjoys payment priority and is collateralized by the underlying properties. This strategic approach helps to mitigate risk and provide greater stability of returns, even in challenging market conditions. The fund targets an average loan-to-value ratio of 65%, providing a substantial downside cushion in the event that property values decline.
In addition to its attractive yield, the Ascent Income Fund offers the flexibility of liquidity options, with redemptions available starting one year after the initial investment. This feature allows investors to adapt to evolving market conditions and adjust their portfolios as needed, without being locked into a long-term commitment.
The current macroeconomic environment has created a unique opportunity for investing in real estate debt, driven by rapidly rising interest rates and reduced competition from regional banks. The Ascent Income Fund is well-positioned to capitalize on this market dislocation, leveraging EquityMultiple’s extensive experience in the middle market and proven track record of success.
Since its inception in 2015, EquityMultiple has invested over $500 million across more than 185 transactions, on behalf of a network of over 40,000 investors. The company’s fully realized investments have produced an impressive net return of 17% to 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. Affiliates of the GP will invest $10M into the fund, ensuring an alignment of interests with 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 servicers and EquityMultiple’s in-house asset management team.
Investors seeking a reliable and attractive income stream may find that the Ascent Income Fund presents a compelling opportunity. With its focus on diversification, yield and liquidity, this fund can serve as a cornerstone investment for income-focused investors looking to navigate the uncertainties in today’s market.
Click here for more details on the Ascent Income Fund.
This article Seeking a Reliable Yield Above 10%? This High-Yield Fund Has Been Paying Out Over 12% To Its Investors originally appeared on Benzinga.com
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