KENNETT SQUARE, PA — Union Square Capital Partners’ USQ Core Real Estate Fund (Ticker: USQIX), a closed-end interval fund, has exceeded $100 million in assets under management.
The Fund’s primary investment objective is to generate a return comprised of both current income and long-term capital appreciation with moderate volatility and low correlation to the broader markets. Union Square Capital Partners implements this strategy by investing in the core private equity real estate funds that comprise the NCREIF Fund Index — Open End Diversified Core Equity (NFI-ODCE). NCREIF’s strict index inclusion requirements include “Core” style private equity real estate utilizing low leverage in stable U.S. operating properties with high occupancy rates, leased to tenants with high credit ratings.
“Passing the $100 million AUM mark is a significant validation of our investment approach,” said Thomas Miller, CEO and CIO of Union Square Capital Partners, the investment adviser to USQIX. “Due to the strong returns and low correlation, we continue to see strong adoption of the Fund, as investment professionals seek out alternatives to fixed income and traditional equity.”
Since the Fund’s inception1 four years ago, USQIX has generated strong risk-adjusted returns with almost no correlation to the broader markets. As of September 30, 2021, the three-year correlation to the S&P 500 Index and the BBgBarc U.S. Agg Bond Index was 0.01 and -0.01, respectively. Additionally, the Fund has distributed 16 quarterly distributions since inception1 at an annualized rate of 4.16% 2, most of which is tax-deferred.
Matt Henry, Managing Partner and Chairman of Chatham Financial, added, “We are excited for Union Square Capital Partners, a subsidiary of Chatham Financial, to reach this milestone. Cost-conscious, high-quality private real estate can enhance the risk/return profile of most portfolios. Yet, for many investors, private real estate is underrepresented. We launched this business to provide the RIA community with access to a traditionally inaccessible asset class.”
1. Inception date is 9/27/2017
2. Distributions are paid quarterly. Annual distribution rate is calculated based on the distribution amounts paid on a per-share basis over the trailing four quarters divided by the NAV at the beginning of the period. Distributions include all distribution payments regardless of source and may include net income, capital gain, and/or return of capital (ROC). ROC should not be confused with yield or income. A Fund’s Section 19a-1 Notice contains additional distribution composition information and may be obtained by visiting www.usqfunds.com. Final determination of a distribution’s tax character will be made on Form 1099 DIV and sent to shareholders. On a tax basis, the estimated component of the cumulative distribution since inception includes a return of capital of 67% per share. This amount is an estimate and the actual amounts and sources for tax reporting purposes may change upon final determination of tax characteristics and may be subject to change based on tax regulations. See additional disclosures below.
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