The Redwood Real Estate Income Fund (“Fund”) primarily invests in short-duration, low loan-to-value (LTV) private bridge loans backed by commercial real estate assets. The Fund’s innovative structure allows it to directly invest in private real estate debt rather than in private funds or managers, thereby avoiding multiple layers of fees.
Through the valued relationships of the Fund’s officers, the Fund seeks to provide investors with exposure to proprietary transactions normally available to only qualified purchasers (QP).The Fund invests alongside other large, institutional investors that otherwise may not be available to retail investors that do not meet higher investment minimums or other investor requirements such as accreditation or qualified purchaser status.
Access: The Fund provides all investors (including non-accredited and non-qualified) exposure to private real estate debt with a single ticker, CREMX. A single ticker with low minimums and no commissions and ticket charges enables advisors to easily include private real estate debt in a diversified asset allocation.
The Fund calculates a daily net asset value (NAV), providing shareholders with an easily calculable and comparable measure of strategy performance. This simplified reporting enhances transparency.
The Fund benefits from the expertise of investment teams that have over two decades of experience. The Fund manager will leverage the knowledge of various loan originators, underwriters, and servicers with long historical track records with whom the manager has close partnerships.
The Fund invests in private real estate loans that originated since the inception date of this specific vehicle (6/23/2023). Thus, all loans have been underwritten to recent valuations and the current interest rate environment (post-2022 rate hikes).
All fees are covered by the manager fee and fund expenses on the prospectus table.
No performance fees
The Fund offers quarterly repurchases of at least 5% of the Fund’s net AUM, allowing investors the potential to redeem shares at the relevant NAV. The short-duration nature of the underlying loans combined with the high current coupon provides enhanced shareholder liquidity relative to other long-duration private investments (real estate equity, private equity, venture, etc).
The Fund pays out dividends on a monthly basis. In addition, the Fund provides the ability to reinvest dividends at NAV.
Michael T. Messinger
Founder,
Portfolio Manager
Richard M. Duff, JD
Portfolio Manager,
Managing Partner
Michael T. Cheung
Portfolio Manager,
Managing Partner
Brian Steiner
Co-Founder,
Managing Partner
Adam Glick
Co-Founder,
Managing Partner
Jason Bordenick
Portfolio Manager
Jeffrey Karsh
Founder,
Managing Principal
Redwood is an investment advisor to registered mutual funds, ETF, a limited partnership, and to separately managed accounts, sub advisory accounts, unified managed accounts, and model portfolios. Redwood is an Investment Advisor registered with the SEC under the 1940 Advisor’s Act. Such registration with SEC does not imply certain level of skill or training and no inference to contrary should be made. To learn more about the Fund Advisor, click here.
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Important disclosure information
Investors should carefully consider the investment objectives, risks, charges and expenses of the Redwood Real Estate Income Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained at redwoodmutualfunds.com or by calling 1-888-570-0805.The prospectus should be read carefully before investing.
For definitions of certain terms, click here.
This fund is an interval closed-end fund. The Fund is an appropriate investment only for those investors who can tolerate a high degree of risk and do not require a liquid investment.The Fund does not intend to list the Shares on any securities exchange and the Fund does not expect a secondary market in the Shares to develop. Because you will be unable to sell your Shares or have them repurchased immediately, you will find it difficult to reduce your exposure on a timely basis during a market downturn. All or a portion of an annual distribution may consist solely of a return of capital (i.e., from your original investment) and not a return of net investment income. The Fund has limited operating history and the shares have no history of public trading. The Fund is classified as “non-diversified” under the Investment Company Act. As a result, it can invest a greater portion of its assets in obligations of a single issuer than a “diversified” fund. The Fund may therefore be more susceptible than a diversified fund to being adversely affected by a single corporate, economic, political or regulatory occurrence. Although the Fund does not intend to invest in companies for the purpose of effecting change or influencing or controlling management itself, the Fund invests in companies that the Adviser believes have potential for capital appreciation resulting from such changes. The Adviser's evaluation of companies may prove incorrect, or the efforts which they invest may not be successful, or even if successful, may have unintended affects or cause the Fund's investment to lose value. The Bloomberg U.S. Treasury Index measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury. Treasury bills are excluded from this index. Investors should carefully consider the investment objectives, risks, charges and expenses of the Redwood Real Estate Income Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained at redwoodmutualfunds.com or by calling. The prospectus should be read carefully before investing. The Redwood Real Estate Income Fund is distributed by UMB, member FINRA/SIPC.
Redwood Investment Management, LLC is a registered adviser with the United States Securities and Exchange Commission in accordance with the Investment Advisers Act of 1940. Such registration does not imply a certain level of skill or training and no inference to the contrary should be made. All materials are for informational purposes only and contain opinions of Redwood, which should not be construed as facts. Unless stated otherwise, none of the materials constitute an offer, nor a solicitation of an offer to invest in any of Redwood’s products, and otherwise affiliated funds. Proceeding to access any information contained herein, users are deemed to be representing to be allowed to do so by applicable laws, regulations, and approval by Redwood having obtained a username and password. There can be no guarantee that any strategy described will achieve its objective. Past performance is not a guarantee of future results. There is risk involved when investing in securities, which can include loss of principal. Please read carefully the disclosures provided within each document.