Investing in the private capital markets offers individual and institutional investors the opportunity to earn the superior structural returns that result from accepting the illiquidity risk of private investments.
Private investments (equity & debt) secured by real estate offer investors the opportunity to earn superior returns with the security of a tangible asset (with a tangible value) backing the investment.
Our partnership has made investments both regionally and nationally in the following types of projects:
We limit our investments in the private markets to equity and debt secured by real estate—primarily residential—because we believe there will always be an organic demand for housing—especially affordable housing—and as a tangible asset, real estate always has instinsic value.
We formed Clothier Springs Capital Partners in 2017 to give our partner-clients the opportunity to participate in the superior returns of real estate-backed private investments in a diversified vehicle.
The commingled partnership vehicle provides broad diversification: by geography, by deal sponsor and by project type. Our low minimum ($25,000) allows investors with modest account balances to benefit from these returns and this diversification.
Targeting annual total returns in the mid to high teens, adding an allocation to the CSCP brings another layer of diversification and risk management to a well-allocated portfolio. Sources of returns include: realized gains, unrealized gains, preferred dividends, interest income, rental income, loan origination fees.
Our partnership is organized as a Limited Liability Corporation and investor/members are limited partners. It is a pure pass through entity, with all economic benefit from our investments accruing to the partnership, and all expenses (audit, custody) charged to the partnership. We charge a modest flat management fee with no incentive fee.
Superior returns from providing equity and debt capital to real estate developers in the private capital markets: check. Added allocation diversification from a new, uncorrelated asset class: check. Price stability and resulting low volatility from a non-publicly traded investment vehicle: check. Broad multi-level diversification within the partnership: check. Tax benefit from real estate depreciation: check. Valuation verification from annual audit: check.
For accredited investors only. This offering is made in reliance on an exemption from registration with the Securities and Exchange Commission provided by Section 4(2) of the Securities Exchange Act of 1933, as amended (The “Act”), and Rule 506 of Regulation D promulgated thereunder. Membership units in Clothier Springs Capital Partners are offered only to certain qualified clients of Clothier Springs Capital Management who are accredited investors, as that term is defined in Rule 506 of Reg. D.