You may access the Private Credit Fund Data Room here: Aspen Funds Private Credit Fund
You may access the Aspen Income Fund Data Room here: Aspen Income Fund
If you’ve been trying to figure out the difference between a debt fund and a private credit fund, or which one belongs in your portfolio, this webinar is for you. Ellis Hammond, VP of Capital at Aspen Funds, walks through a side-by-side comparison of Aspen Income (debt) and the Aspen Private Credit Fund, covering where each sits in the capital stack, how each is taxed, what the performance track record looks like, and how to think about the tradeoff between yield, risk, and compounding over time.
What You’ll Learn
- How the capital stack works and why where you sit as an investor matters more than most people realize
- The key differences between debt and private credit, and what “preferred equity” actually means in practice
- How each fund is taxed, including K1 treatment, depreciation pass-through, UBTI considerations for IRA investors, and what a 20% K1 loss actually means when you made 10%
- Current performance data for both funds: Aspen Income’s 12-year track record at 9% fixed annualized, and Aspen Private Credit Fund’s trailing yields (Q3: ~11%, Q4 2025 target: 12%+)
- The math on compounding: why 3% more yield compounded over 40 years produces $34 million more on an $80K/year investment
- How to decide which fund, or combination of both, fits your income goals, tax situation, and stage of life
About This Webinar
Ellis opens with a foundational question most investors don’t ask themselves: where am I in the capital stack across my entire portfolio? Many accredited investors who think they’re well-diversified are actually concentrated entirely in common equity, the highest-risk, last-to-get-paid position. This webinar reframes the conversation around capital stack diversification, not just asset class diversification.
From there, Ellis walks through both funds in detail. Aspen Income holds 955 loans, 72 first-lien and 783 second-lien residential mortgage notes, with a weighted average LTV of 55.5% on the second-lien portfolio and 50–65% on first-lien positions. It has paid a 9% fixed annualized yield for 40+ consecutive quarters without a missed distribution, and has returned over $25 million in distributions to investors since inception. (Note: the yield moves to 8.5% for new investments made in 2026.)
The Aspen Private Credit Fund holds approximately 12 placements across commercial real estate asset classes, multifamily, industrial, student housing, and medical office — with a current weighted LTV of 82% and a stabilized weighted LTV of 70%. Most positions are preferred equity, which generates rental income rather than interest income, enabling depreciation pass-through to investors. The fund’s total yield across placements is approximately 18.1%, translating to a 10–13% annualized return to Class A investors.
The Q&A section covers IRA investing and UBTI, how to split placements to blend distribution and compounding strategies, minimum investment requirements, and how to access the live fund dashboards in Aspen’s data rooms.
Key Takeaways
- Capital stack diversification matters as much as asset class diversification — most LP investors are concentrated in common equity without realizing it
- Aspen Income = predictability: 12-year track record, 9% fixed annualized yield (8.5% for new 2026 investments), no UBTI, K1 with passive income treatment
- Aspen Private Credit Fund = tax efficiency + higher yield: Preferred equity positions pass through depreciation — in 2024, investors earned 10.5% annualized but showed a 20% loss on their K1, significantly reducing taxable income
- Compounding is the real edge: $80K/year at 9% for 40 years = $27M. At 12%, the same scenario = $61M — a $34M difference from 3% more yield
- Both funds have never missed a distribution — Aspen Income at a 1-year lockup, Aspen Private Credit Fund at a 2-year lockup, both with quarterly redemptions thereafter
About the Speaker
Ellis Hammond is Vice President of Capital at Aspen Funds, overseeing investor relations and capital formation. Ellis works directly with accredited investors to help them evaluate Aspen’s fund offerings and build income-generating alternative investment portfolios.
Ready to evaluate which fund fits your portfolio? Access the data rooms for Aspen Income and the Aspen Private Credit Fund.