Sortis Income Fund Reports 10.2% Annualized Return During 2Q20, Launches New Fund
Sortis Income Fund LLC, a private placement fund sponsored by alternative investment fund manager Sortis Holdings, announced that it produced a net annualized return of 10.2 percent during the second quarter 2020.
Sortis Income Fund LLC, a private placement sponsored by alternative investment fund manager Sortis Holdings, announced that it produced a net annualized return of 10.2 percent during the second quarter 2020.
The Sortis Income Fund is an evergreen unleveraged mortgage fund, which focuses on short-term notes that are collateralized by real estate. The fund is structured as a Regulation D 506(c) offering that seeks to raise $100 million, according to filings with the Securities and Exchange Commission. According to its most recent filing in December 2019, the fund had raised $23.4 million from 214 investors.
“Not only are we seeing strong performance in our current loan portfolio given our average 65 percent loan-to-value [first] position on real estate collateral, but we are seeing tremendous demand for real estate financing at very attractive terms for our investors,” said Jef Baker, Sortis Income Fund managing director.
“We were early to recognize the pattern we’ve seen in previous cycles and we accumulated cash in the first quarter of this year in anticipation of strong loan demand developing out of distress,” he added. “Sure enough, in the second quarter we have been able to carefully select attractive real estate loans with better yields and terms than in previous quarters, driving a double digit return to our investors.”
Sortis recently launched its sixth fund, the Sortis Rescue Fund, which will focus on distressed real estate, and what it deems as “once-in-a-cycle” real estate and business opportunities created by the COVID-19 outbreak. The Regulation D 506(c) fund has a total offering amount of $50 million and raised $150,000 from three investors since its launch on June 17, according to an SEC filing.
Sortis Holdings is an investment firm with a primary focus on real estate, both as a lender and as a direct investor. The company also sponsors the Sortis Opportunity Zone Fund, a qualified opportunity zone fund that seeks to raise $100 million from accredited investors.
