Private Capital Fund, LLC

Fund inception: 2004 ( The fund termed out December 31st 2019)

Stonecrest created the Private Capital Fund to give individual investors the opportunity to participate in high-yield real estate-secured investments.

The fund consists of first and second trust deeds on residential and commercial properties, the majority of which are in California. The Private Capital Fund finances residential and commercial properties at a maximum loan-to-value ratio of 65%.

The Fund underwrites all loans with as much rigor as required to determine collateral value, insurance, credit and title history.

The fund’s objectives are to provide investors with robust monthly income and to enhance portfolio diversification.

Prior to the market’s downturn, the fund’s return averaged a stable 9%. Stonecrest anticipated market corrections and made the difficult decision to allocate a portion of those returns to loan loss reserves. That strategy, along with a diversified portfolio that performed well during the market downturn, allowed Stonecrest to absorb market losses against income rather than losing investors’ principal. Since that point, we have consistently returned over 7% to the Private Capital Fund.