Diversified High Yield Property (HYP) Fund
Fund Background
The Diversified US High Yield Property Fund (HYP) is the next fund to be brought to the market by the Carlton James Group. Headquartered in Royal Wootton Bassett, Wiltshire (UK) the Carlton James Group have managed over 13 successful funds and private placements over the last 13 years. After the group experienced 5 years of successful returns under their flagship fund the Diversified Alpha Fund (DAF), the strategy of which is to invest in a range of different asset classes the group have now launched the latest US Property fund.
The strategy of this fund is not new for this group. This strategy including all parties of this fund were first honed within DAF. For the past 5 years the group have received multiple requests for a separated Commercial Real Estate part of DAF as a standalone product. This had to be launched at the right time to take full advantage of the Real Estate market. 2023 is that time. HYP’s strategy utilized in the current part of the economic cycle makes this fund a security blanket for its investors during what is set to be a turbulent time for most funds.
Diversified US HYP Strategy
The fund lends money to CCP US (ccpus.com), a well-established property developer across the US with headquarters in Florida, USA. The Diversified US High Yield Property Fund (HYP) aims to generate a return of 10% per annum over the long term and it expects to pay up to 6% annual dividend on a quarterly basis.
HYP will invest via lending to the United States Real Estate market secured by way of any combination of a first lien, second lien or collateral assignment to an established property developer with over 15 years’ experience in the real estate market and 5 years’ experience working with the fund investment advisors. The investment will focus on multifamily properties with the objective of increasing value by improving the rentability and saleability of the properties. The business model adopted by the property developer is to rent the properties for a minimum period of three years at end of which the property will be refinanced or sold.
The Global Opportunity
- Upcoming Global Recession – the upcoming global recession will prove to have many opportunities for Real Estate Developers with access to funding
- Scarcity of Capital – sources of finance is starting to become difficult to This should only get worse over the coming months
- Regulations – increased levels of regulation on banks will impacted lending levels
Investment Opportunity
- Invest in a Cayman regulated mutual fund
- Benefit from the experience of this Commercial Real Estate marketplace through Carlton James which has risk management and diversification as it’s core objective
- Dividends – expected dividend of net 6% p.a. paid quarterly
- High Yield – expected overall return of 10%+ per annum
Fund Vehicle & Structure
Company: TraderHouse Private Label Funds Platform SPC
Segregated Portfolio: Diversified US High Yield Property Fund
Investment Manager: Mollitium Investment Management Ltd
Investment Advisor: Diversified Global Investment Advisors Ltd
Administrator: NAV Fund Administration Group
Auditor: Baker Tilly
Domicile: Cayman Island
Structure: Regulated unlisted fund
Cayman Share Class: USD – ISIN KYG8993L2316
Minimum Investment: $120,000 USD
Targeted Return: 10% p.a
Targeted Dividend: 6% p.a
Management Fee: 1.5% p.a
Redemption Policy – 3 year initial lock in period, followed by quarterly redemptions.
The fund is also available via a European certificate with a Swiss ISIN – please contact the sales team for details.
