Cadre Launches Horizon Fund, Delivering New Income-Oriented Vehicle for Expanded base of Individual Investors
Cadre, the leading technology-driven real estate investment platform, has launched its latest investment offering, the Cadre Horizon Fund. The Cadre Horizon Fund builds on Cadre's exceptional track record (~28% realized net IRR) and will enable an even wider base of investors to access a diversified portfolio of premier real estate across the country.1 The Horizon Fund also offers investors the opportunity to invest in an asset class that serves as a hedge against inflation while providing stable yield and income at a time of significant broader macro volatility.
Powered by Cadre's high-tech/high-touch approach, the Cadre Horizon Fund features a high quality portfolio of income-oriented real estate investments in the country's strongest markets. The investment solution is oriented towards individuals looking to invest alongside an experienced manager and diversify outside of stocks and bonds through defensive, recession-resilient sectors such as multifamily, light warehouse, and leisure hotels.2 The Horizon Fund will ultimately be an SEC-registered REIT in order to provide investors with unique tax benefits that real estate investing offers, including tax-advantaged distributions.3
According to a recent survey by Cadre and Underground Research, 73% of mass affluent investors are interested in commercial real estate and 68% want to diversify their portfolios.4 As more individuals grapple with extraordinarily high inflation and global instability, the Cadre Horizon Fund aims to help investors hedge public headwinds in private real estate markets. Over the last 20 years, private real estate has delivered returns comparable to equities with ~66% less volatility.2 Meanwhile private real estate has delivered average returns ~6.6% higher than the U.S. Consumer Price Index, a central indicator of rising inflation.5
"We have long intended to release an income-oriented product and are proud to open the Horizon Fund at an important time when more investors need the option to invest in products that provide yield, appreciation, and downside protection private real estate offers," said Dan Rosenbloom, Cadre's Head of Investments. "Our individual deal investments and the Cadre Direct Access Fund continue to demonstrate the wealth-building power of commercial real estate through compelling returns. The Horizon Fund represents our conviction in CRE's ability to generate income ? a feature we are excited to share with our investors."
The Horizon Fund is another step in Cadre's rapid evolution and growth. The firm has methodically scaled and delivered exceptional results since its founding. Cadre has invested in assets eclipsing $5 billion in value across 25 markets in the U.S., while generating an average ~28% realized net IRR and 1.8x realized net equity multiple to hundreds of clients around the world. Cadre's experienced investments team brings rigorous, institutional diligence, and proactive asset management ? paired with advanced proprietary technology and data analytics ? leading to more than $460mm in distributions to investors.6 Following the close of The Cadre Direct Access Fund earlier this year, the fund generated impressive realized returns to investors with the first two property sales in the fund achieving 40.2% and 67.3% realized net IRRs and doubling investors money in less than two years.7
"I founded Cadre to expand access to premier real estate investments. With a tax-advantaged structure, lower investment minimums, and a strategy focused on delivering yield with lower volatility, our Fund is positioned to support more investors achieve better financial futures than ever before," said Ryan Williams, Cadre's Founder and Executive Chairman. "Through the Horizon Fund, we are bringing access to a diversified portfolio of assets in carefully selected sectors such as multifamily and industrial and high-growth geographies. The launch of the fund should prove critical to improving investors' financial futures, while empowering more individuals than ever before to access and learn more about this important sector that can unlock multi-generational wealth."
Accredited investors can begin investing in the Horizon Fund and other opportunities today. Broader access to the Horizon Fund is expected to be made available in 2023.
About Cadre
Cadre is a groundbreaking technology-driven commercial real estate investment platform that offers both institutional and individual investors the opportunity to invest in expertly diligenced real estate assets with lower minimums, low fees, and unprecedented potential for liquidity. Via its data-driven and transparent approach, Cadre opens participation in a historically opaque and illiquid asset class.
Along with its traditional investment offerings, Cadre also provides investors with the ability to seek liquidity through its proprietary secondary market, a unique offering within the industry.
Since Cadre's founding, Cadre has closed more than $5 billion in real estate transactions across 25 U.S. markets. Cadre has exited thirteen investments with a ~28% realized net IRR and in total has returned approximately $462 million of capital to Cadre investors to date. For additional information, please visit www.cadre.com.1, 5
Disclaimer
Not Advice: This communication is not to be construed as investment, tax, or legal advice in relation to the relevant subject matter; investors must seek their own legal or other professional advice.
Performance Not Guaranteed: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance.
Risk of Loss: All investments involve a high degree of risk and may result in partial or total loss of your investment.
Liquidity Not Guaranteed: Investments offered by Cadre are illiquid and there is never any guarantee that you will be able to exit your investments on the Secondary Market or at what price an exit (if any) will be achieved.
1 Data as of 9/6/2022. IRR calculation represents an equity-weighted average annualized internal rate of return (IRR) for realized real estate investments of offerings by Cadre since the formation of our Investment Committee through to the date of calculation, after deduction of fees and expenses. Equity multiple represents the investment multiple on equity, which is calculated by dividing the aggregate realized proceeds for the applicable investment after deduction of fees and expenses. Realized and updated target returns are inclusive of all of Cadre's completed dispositions. Realized returns are subject to change following final distributions on sold assets. Calculations are generally made as of the date of the sale of the applicable asset and may include targeted proceeds that are to be distributed to the vehicles managed by Cadre (but which have not been realized by the vehicle as of the date of calculation). The calculation of net return figures for each investment pertains to single-asset investment vehicles only. The calculation of net return figures for each investment in a multi-investment fund vehicle is difficult, if not impossible, to prepare with accuracy due to the estimation of fund-wide expenses and other variable fees applicable to each investment that are necessary for such calculations. Returns reflect net performance and are not audited. View our full track record and important disclosures at cadre.com/track-record.
2 Source: NAREIT and YCharts as of March 31, 2022. Calculated as the annualized standard deviation.
3 Source: Internal Revenue Code Section 199A.
4 Source: Underground Research. Survey in April 2022 among n=1,181 respondents. "Mass affluent" is defined as consumers with a HHI of $75-$500k.
5 High inflation is defined as quarters for which the US Consumer Price Index YoY return was in the 66th percentile for period 12/31/1978 to 3/31/2022. Private real estate is represented by the average annual growth rate of the NCREIF Property Index. Public REITs are represented by the average annual growth rate of the FTSE Nareit All REITs Index. CPI is represented by the US Consumer Price Index.
6 Aggregate capital to investors refers to the sum of any income distributions, sales gains, and return of capital without deduction for any investor specific withholding or contribution interest.
7 Calculations are generally made as of the date of the sale of the applicable asset and may include targeted proceeds that are to be distributed to the vehicles managed by Cadre (but which have not been realized by the vehicle as of the date of calculation). The calculation of net return figures for each investment pertains to single-asset investment vehicles only. The calculation of net return figures for each investment in a multi-investment fund vehicle is difficult, if not impossible, to prepare with accuracy due to the estimation of fund-wide expenses and other variable fees applicable to each investment that are necessary for such calculations. Returns reflect net performance and are not audited.
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