Aspen Opportunity Fund Closed 1/31/2024
DIVERSIFIED REAL ESTATE PORTFOLIO
LEARN HOW YOU CAN DIVERSIFY PASSIVELY INTO MACRO-DRIVEN REAL ESTATE
overview
Aspen Opportunity Fund is a diversified real estate fund focused on investing in what we believe to be the best risk-adjusted opportunities.
This Fund will be focusing on multiple asset classes giving you better diversification across strategies and asset classes. Following our economic research, we’ll be targeting strategies that are supported by economic megatrends.
The Fund will target deploying capital anywhere from $2-10MM+ equity positions, with a focus maximizing total return and investor IRR.
Five Targeted Asset Classes
Housing
Industrial
Retail
Self-Storage
Distressed Debt
How Does The Opportunity Fund Work?
ACQUIRE PROPERTIES
Fund’s deployment period will be 1 year, with possible extension if needed and will invest in value-add properties or ground up development
DEVELOP OR ADD VALUE
Depending on the property’s strategy, we will begin our value-add strategy or development
LEASE UP & STABILIZE
Once the renovations or construction are completed, we will begin our lease up and stabilization period- during this period, cash flow begins to grow, and investor distributions are expected to begin
RETURN CAPITAL
Fund will drive value in properties and depending on timing a strategic refinance will be utilized to return capital, especially on development projects
INVESTMENT BENEFITS
Diversification
Your investment goes further in a fund structure as you invest into multiple assets with a single check. This reduces risk and variance of return.
Reduce risk
Your investment will be spread across multiple properties in multiple asset classes, reducing variance of return
Ease of Investment
Rather than reviewing multiple PPMs, sending multiple wires, or gathering multiple K-1s, you can invest with a single investment
INVESTMENT OVERVIEW
| CLASS A SHARES | CLASS B SHARES | CLASS C SHARES | |
| Minimum Investment | $50,000 | $250,000 | $1,000,000 |
| Preferred Return | 7% | 8% | 9% |
| LP/GP Promote | 70/30* | 75/25* | 80/20* |
| Target Net Annual Return | 15-20% | 16-21% | 17-22% |
| Target Net IRR | 13-16% | 14-17% | 15-18% |
| Projected Hold Period | 5-6 years | 5-6 years | 5-6 years |
| *Up to an 18% AAR, then 50/50 thereafter | |||
FUND STRATEGY
ACQUIRE PROPERTIES
- Fund will target equity placements into properties between $2-10MM+
- Fund’s deployment period will be 1 year, with possible extension if needed
- Capital will be funded in tranches based on waitlist
- Fund will invest in value-add properties or ground up development
DEVELOP OR ADD VALUE
- Depending on the property’s strategy, we will begin our value-add strategy or development
- If value-add, we will begin renovations
- If development, we will begin construction in phases
- During this period, which will take between 1-2 years per property, cash flow will be limited
LEASE UP & STABILIZE
- Once the renovations or construction are completed, we will begin our lease up and stabilization period
- On either strategy, we will begin leasing up as units are renovated or phases of construction are completed
- During this period, cash flow begins to grow, and investor distributions are expected to begin
RETURN CAPITAL
- Fund will have two drivers of return of capital back to investors – refinancing or disposition
- Fund will drive value in properties and depending on timing a strategic refinance will be utilized to return capital, especially on development projects
- This will be primary driver of Fund returns
Our Track Record by the Numbers
FREQUENTLY ASKED QUESTIONS
How long has Aspen Funds been managing funds?
Aspen has been managing funds since 2013 across a handful of asset classes. Aspen has never missed an investor payment, nor have we lost any investor’s principal investment capital to date.
What is the minimum investment?
The minimum investment in the Aspen Opportunity Fund is $50,000.
What is the initial lock-up period on this fund?
The fund life is expected to be 5-6 years; however, our team is always evaluating exit opportunities and will consider exiting early should it benefit investor returns.
How often will I be updated about my investment?
Every Aspen investor is given an investor portal to track investments whenever they would like. We provide capital account statements, investor newsletters, and financial statements on a quarterly basis. We also always welcome calls from our investors.
How many assets will this fund hold?
The Opportunity Fund will hold anywhere from 6-10 real estate assets.
What is the breakdown between cash flow and capital gains?
The Opportunity Fund will focus on opportunities we believe will generate strong risk-adjusted returns. While some opportunities will generate cash flow day one, many heavier value add or development deals may not produce cash flow for a period of time. On a blended basis, we expect cash flow for the first year or so to be minimal. Once projects stabilize we expect liquidity events to be generated from refinances or sales of properties.
Are there tax advantages?
Yes. Many of the properties we purchase into the fund will go through a cost segregation study leading to accelerated bonus depreciation. In addition, sales of properties generally result in capital gain.
Can I invest with an IRA or 401K?
Yes, our funds allow investment through qualified retirement money. This must be done through a self-directed IRA or 401K. If you don’t yet have a self-directed account, we can make introductions to several custodians that we have worked with.
Additionally, leverage on the underlying assets lead to the possibility of generating Unrelated Business Income Tax (UBIT). We would ask that investors speak with their tax professional about potential implications. Aspen offers investors the ability to invest directly with your qualified plan or through a UBIT blocker.
Do I need to be an accredited investor to invest in the fund?
Yes, our funds currently only allow accredited investors.
What is an accredited investor?
An individual or an entity can generally qualify as an accredited investor if they meet at least one of the following criteria:
- an individual with income exceeding $200,000 or joint income with his or her spouse of at least $300,000, in each of the last two years with the expectation to reasonably maintain the same level of income in the present year
- an individual with a net worth exceeding $1 million, excluding the primary residence, either individually or jointly with his or her spouse;
- an entity that has assets exceeding $5 million that was not formed solely for the purpose of making the investment; or
- an entity whose owners all satisfy 1, 2, or 3 above.
- holds in good standing a Series 7, 65 or 82 license.
For more information about the requirements of an accredited investor, see this bulletin from the SEC.
TESTIMONIALS
-Dave & Deanna
-Dawn
-Brian
-Marsha
WATCH THE WEBINAR
You’re about to learn about a fund 10 years in the making providing:
- Manager experience: Over a decade in private equity; principals have 100+ years combined experience.
- Diversification: Invest in multiple assets with one check, reducing risk and return variance.
- Alignment: Aspen's management team is personally invested in every deal.
- Invest in Economic Tides: Our team continuously analyzes economic trends, enabling our fund to invest in the best deals, regardless of asset class
- Lower Volatility: Less volatility than public markets, with added protection against individual property risks.
- Tax Benefits: The advantages that direct property ownership offers to our investors
