Private Credit Fund - Aspen Funds

Aspen Private Credit Fund

An Opportunistic Income-Focused Fund

Add Monthly Cashflow and Upside Growth To Your Portfolio

OVERVIEW

Aspen Funds is pleased to present the, Aspen Private Credit Fund, an open-ended fund focused on providing credit to commercial real estate properties.

A dislocation in the capital markets has created a unique opportunity for non-bank lenders to provide capital through preferred equity, mezzanine debt & bridge loans.

This Fund will be focused on providing current cash yield and upside through profit share while investing in preferred positions in the underlying investment.

How does the Private Credit Fund work?

Regular Distributions
  • Preferred return distributions paid monthly, as available after 3 months
  • Profit share paid our quarterly, as available after 3 months
  • Option to automatically reinvest, compound quarterly
Strategy & Tranches
  • Open-end fund, with quarterly NAV calculations, capital funded in tranches based on availability
  • Fund will invest in preferred equity or mezzanine loans in commercial real estate
  • Focus of Fund will be generating current cash, plus profits at a preferred position in the capital stack
Investor Protection
  • Non-dilutive: New cash is deployed into producing assets
  • High-water mark: unit price must exceed highest 12-month price before manager profit-share is paid
Returns & Reporting
  • Preferred return distributions paid monthly, as available
  • Profit share paid our quarterly, as available
  • Option to automatically reinvest, compound quarterly
Liquidity
  • Investors may request full or partial redemption quarterly after 2-year lock-up period on 90 days notice (best efforts, may take up to 6 months for full payout)
Structure
  • Minimum investment: $100,000
  • AUM Fee: varies by share class
  • Verified accredited investors only
  • Annual CPA audit
  • Low leverage
  • IRA investment welcome
  • Results are not guaranteed

INVESTMENT BENEFITS

High Current Yield

Focus of the Fund will be on delivering a high current yield paid monthly, with additional profits shared quarterly, creative passive cash flow.

Prefered Position
in Capital Stack

Fund investments will be in preferred positions in underlying assets with priority of payment before common equity holders, and generally with takeover rights for events of default.

Open Ended Structure

Fund will accept capital contributions quarterly at the Net Asset Value. Investors will receive quarterly statements of account and will have optional liquidity after a 2-year lockup period.

Strong Sponsor Team

Aspen Funds is lead sponsor of this Fund, an 11+ year track operating open-ended credit funds. We will leverage our deep experience in this space and internal staff. cash, paid monthly

Alignment & Co-Investment

Aspen Funds management team are co-investing personal capital in this Fund. Further, our incentive structure prioritizes a preferred return to our limited partners.

Diversified Portfolio

Fund will make investments into multiple projects, markets & operators. As Fund grows, we expect the diversification to be further enhanced.

INVESTMENT OVERVIEW

CLASS A
SHARES*
CLASS B
SHARES*
CLASS C
SHARES*
Minimum Investment $100,000 $1,000,000 $5,000,000
Preferred Return 6% 7% 8%
LP/GP Promote 70/30* 80/20* 90/10*
Target Net Total Return (annualized) 10-12% 11-13% 12-14%
Target Net Cash Yield (annualized) 8-11% 9-12% 10-13%
Target Compounded Return (annualized) 11-14% 12-15% 13-16%
AUM Fee 2% 1.5% 1.5%

*Performance shown are targeted returns and are not guaranteed.

STRATEGY

How do we source deals?

PLACEMENT AGENTS

  • We utilize our established broker network to source pre-vetted deals.
  • Brokers are selective on types of deals they represent for financing.
  • Difficult to place investments below $5MM.

LENDERS

  • We have forged relationships directly with lenders whose borrower’s need capital infusions.
  • Lenders may want to keep the deal, but have tapped out their ability to fund capital need.

SPONSOR NETWORK

  • Because of our position in the market, we generate deal flow from existing sponsor network.
  • We have been able to negotiate preferred terms through our Fund which brings committed capital for their deal.

Our Track Record by the Numbers

$M+

Investor Capital Managed

$M+

Assets Under Management

$M+

Years Track Record

$M+

Investor Distributions Since Inception

Frequently Asked Questions

The minimum investment in Aspen Private Credit Fund is $100,000.

The initial lock-up period for this fund is 2 years. After 2-years we provide best-efforts liquidity and allow investors the option to redeem their shares on a quarterly basis with 90 days written notice.

Yes, this fund is open-ended, also known as an evergreen fund. We calculate Net Asset Value (NAV) on a quarterly basis and allow investors to subscribe and redeem at the current share price.

Net Asset Value (aka "NAV") is the net value of an investment fund's assets less its liabilities, divided by the number of shares outstanding.

Preferred returns will begin to accrue 90 days post funding, with the first distribution available the following month.

On a monthly basis, investors receive their preferred return. Quarterly, we provide capital account statements, investor newsletters, and financial statements. We also always welcome calls from our investors.

Yes, our funds currently only allow accredited investors.

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, our funds do not generate Unrelated Business Income Tax (UBIT).

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.

For more information about the requirements of an accredited investor, see this bulletin from the SEC.

Testimonials

I am a CPA and also the Executive Director of Northen Michigan Angel investment group. I have reviewed many investments, and it is a pleasure to see one like Aspen, with its outstanding business model and professional execution with timely updates on its progress.

-Dave & Deanna

I am a healthcare marketing executive. I have known Bob Fraser for over 10 years and hold him in the highest regard, and I have been with Aspen from the beginning. I couldn’t be more pleased – the dividends and statements come on time, and the team is always responsive and helpful. I feel like my money is in good hands.

-Dawn

I am a business guy from Canada who owns different companies, one with 500 employees. I like to find great opportunities. I have been with Aspen for about four years. I look for people who have very good business experience and that I can trust. Aspen has provided that for me.

-Brian

I'm an accounting professor and real estate investor. In the past, I have not had much free time to oversee my portfolio. In early 2014, Bob Fraser contacted me to tell me about Aspen. I am impressed with the Aspen team. I will be investing more funds with Aspen as I liquidate my real estate investments.

-Marsha

WATCH THE WEBINAR

The 1-hour webinar covers many topics about the Aspen Private Credit Fund in great detail, including:

Generating immediate cash flow
with upside

How our open-end fund structure works

Highlight 2 of our initial fund investments

How does the Private Credit Fund work?

Regular Distributions
Strategy & Tranches
Investor Protection
Returns & Reporting
Liquidity
Structure

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