How can you take advantage of the opportunities offered by the U.S. real estate market? To answer this question, FYNSA organized a webinar in partnership with ACRES Capital, the firm that manages the ACRES Mortgage Fund, in which the FYNSA U.S. Private Debt Investment Fund participates .
The ACRES Mortgage Fund focuses on a single strategy: providing capital through first mortgages to real estate developers in the U.S. This was explained by Andrew Fentress, managing partner of ACRES Capital.
The Fund has US$507 million in assets under management, diversified by geographic region and asset class.
"The holdings are in the 2% to 4% range, so in the end we offer a great degree of diversification across the different categories we are looking to invest in" Fentress noted.
"These are investments that don't correlate with idiosyncratic risks when you have market events, like what happened with Covid or like what we experienced in the first half of this year; you may have one or two loans that go off course, but you won't see cross-cutting problems in the portfolio," he said.
The loans, he explained, have floating rates, which allow investors to take advantage of higher interest rates.
The Fund has posted positive returns every month since its inception, and the ACRES team constantly monitors the assets in which it is invested. They have invested more than US$2,700 using the same strategy since the fund’s inception.
In addition, Fentress noted that now is a good time for this type of investment.
“We are in a period of financial tightening,” he said.“We are in a situation where we can invest money at higher margins than we were able to in recent years. And we can do so at higher base rates; thus, the aggregate rate of return for our investors is higher today.”
You can watch the full webinar here