Investing in real estate mortgage funds often challenges striking the right balance between liquidity and maximizing yield. At Fidelis Private Fund, we understand that our investors have diverse needs and goals. We are committed to offering a strategy that achieves acceptable liquidity and long-term wealth accumulation. A key component of this strategy is using a modest credit line as a cash management tool. Fidelis’s commitment to investors is to minimize leverage to no more than 20% of total capital, which is considered a low-leveraged fund.
Understanding Liquidity in Mortgage Funds
Liquidity concerns how quickly and easily you can convert your investment into cash. While mortgage funds are traditionally less liquid than some other investments, Fidelis recognizes the importance of offering some liquidity to meet our investors’ changing financial needs. This is where a modest credit line comes into play, balancing liquidity and yield enhancement. By maintaining a credit line, Fidelis can ensure funds are available for timely redemptions, enhancing the overall liquidity of the portfolio without sacrificing yield, thus maintaining integrity and growth potential.
Enhancing Liquidity and Yield with a Credit Line
The strategic use of a credit line allows Fidelis to navigate liquidity demands more effectively. This tool helps us cover redemption requests within a reasonable period, maintaining a smoother and more predictable liquidity profile for the fund. Moreover, using a credit line to manage short-term liquidity needs, we can keep our investors’ funds invested in higher-yielding loans rather than sitting in cash, thus enhancing overall fund performance and investor yields.
The Long-Term Growth Horizon
Our commitment is to long-term growth and the preservation of capital. We invest in a diversified portfolio of real estate loans secured by real estate investment properties to provide stable and consistent growth. While using a credit line enhances short-term liquidity, our focus remains on ensuring that our investors’ funds are lent out in the form of loans to maximize our investors’ wealth accumulation.
Conclusion
At Fidelis Private Fund, we ensure that our investors do not have to compromise between immediate liquidity needs and higher yields. Fidelis is currently generating over 9% annualized to our investors, which is enhanced by using a modest credit line. By using a modest line of credit as a cash management tool, we provide a balanced solution that enhances liquidity and investor yield, ensuring a pathway to prosperity that accommodates flexibility and growth.
Our Fund is currently open to new investors or existing limited partners can easily add to their accounts.
Fidelis, a real estate mortgage fund, prioritizes capital preservation and provides a consistent and competitive yield. Investors have the option to choose between fixed income returns or reinvesting their earnings. For more information, please refer to the sections below.
Fidelis Private Fund annualized yield paid to Limited Partners for the fourth quarter of 2023 was 9.32%. Click here for a summary of Fidelis’s annualized yield since inception.
Fidelis 2028 Vivid Vision – Where are we going and how are we going to get there!
The Fidelis 2028 Vivid Vision document provides a comprehensive blueprint of the company’s strategic direction, core values, and operational principles, highlighting its commitment to capital preservation, growth, innovation, and client-centric services. Click to read the Fidelis vision.