The funds are available from the CAPFUNDR website, and will be offered at much lower fees than non-traded Real Estate Investment Trust shares (REITs) which are often the only real-estate oriented option for individual investors.
Founded by veteran real estate executives Edward C Yu and Jean-Michel (Mitch) Wasterlain, CAPFUNDR plans to roll out additional funds in the near future utilizing diverse strategies such as investing in multifamily, net lease, and retail properties.
The Co-CEOs each have over 25 years of experience at noted real estate funds and public REITs.
Edward Yu has held senior positions at Starwood Capital Group, CBRE Investors and Prudential Real Estate Investors while Mitch Wasterlain was CEO of ORIX Capital Markets and Chief Investment Officer of NorthStar Realty Finance, a listed public REIT.
"Our real estate funds will give individual investors access to the same properties and the same quality of management that benefit institutions," Yu says.
"We leverage technology and our expertise to provide investors with a selection of high quality institutional-style funds that offer affordable minimum investment amounts."
CAPFUNDR says its first private equity fund offering, CAPFUNDR REIT Value Fund I will look to capitalize on market inefficiencies by facilitating the purchase of non-traded REIT shares at prices below their intrinsic value.
“Non-traded REITs are a flawed model,” Wasterlain says.
“The fees they charge make it nearly impossible to produce the returns that investors expect. But for individual investors who want to invest in real estate to diversify their portfolios, there have been limited choices.
While there are no brokerage commissions on the Fund, tehre is a minimum investment of $10,000.
There is also a 1.00 per cent upfront investment fee plus an annual management fee of 2.00 per cent, which would be in addition to any fees within the underlying non-traded REITs purchased by the fund.
Despte this Yu asserts CAPFUNDR delivers investors a better option with lower fees, credible management, and much more transparency.
Yu says the new fund can buy the shares of non-traded REITs, in some cases, for less than fifty cents on the dollar.
"At that price, they are a good buy for our investors,” he says.
CAPFUNDR's second two founders Joe Cane and Mirza Joldic are the firm's General Counsel and Chief Technology Officer, respectively.
Joe Cane has practiced law for over 20 years and specializes in representing start-up, early stage, and mature companies, as well as VC and private equity firms.
Mirza Joldic was a technology consultant for the City of New York and for Prudential Real Estate Investors, where he focused on large inter-agency data integration projects and customized workflow applications.