A new fund designed to meet investor demand for commercial real estate debt strategies.
Denver, Colorado – August 10, 2021 – Forum Capital Advisors, LLC, a boutique asset management firm and affiliate of Denver-based Forum Investment Group, announced today the launch of its latest investment offering: the Forum CRE Income Fund (“FCREIF”), a ‘40-Act private placement continuously-offered closed-end tender fund focusing on investment opportunities within commercial real estate debt. FCREIF offers high-net-worth individuals, institutions, family offices and financial intermediaries access to commercial real estate debt and represents a restructuring of the firm’s successful Forum Integrated Income Fund (“FIIF”), which closed in December 2020 with $50 million.
“Based on the strong performance of our first debt offering, Forum Integrated Income Fund, and in response to feedback from many of our investors who wanted to add to their investment, we have listened and taken action with the introduction of FCREIF,” said Forum Founder & CEO, Darren Fisk. “FCREIF is designed to provide access to commercial real estate debt investments at a time when investors are looking for better portfolio diversification alternatives and new income options. We are really excited about FCREIF and look forward to providing investors with a new opportunity to access the Commercial Real Estate debt space.”
Commercial real estate debt is an asset class that is not traditionally easily accessible to retail investors and is an alternative potential source of income and diversification at a time when both are hard to find. Forum has a track record of delivering commercial real estate debt opportunities, and FCREIF brings sophisticated real estate asset management directly to investors at a relatively reasonable investment minimum.
Research suggests that retail investors are traditionally under-allocated to alternative investments and real estate, especially when compared to institutional investors. FCREIF strives to be a real estate investment that is not burdened with high fees and low liquidity, or highly correlated with S&P 500 and other traditional assets. FCREIF provides a limited liquidity feature1, and has historically exhibited low correlation to the broad stock market, which can help diversify and insulate portfolios.
To learn more, visit www.FCREIF.com.
Media Inquiries: ForumRealEstate@wearecsg.com
About Forum Investment Group
Forum Investment Group—with affiliate entities Forum Real Estate Group and Forum Capital Advisors—is a private real estate investment firm with expertise and an emphasis on multifamily investing throughout real estate cycles and across the full capital stack. The firm offers real estate acquisition, development and debt investments and has established a solid track record of generating reliable current income with an attractive risk/return profile and building long-term value and appreciation for investors. Affiliate entity Forum Capital Advisors, LLC (“FCA”), formed in 2018, is a registered investment adviser and manager of the firm’s fund investment vehicles. For more information, visit www.ForumRE.com.
1Each quarterly repurchase offer will ordinarily be limited to the repurchase of 5% of the weighted average number of shares outstanding in the prior calendar year (or 20% in each calendar year). A 2.00% early redemption fee payable to the Fund will be charged with respect to the repurchase of a shareholder's shares at any time prior to the day immediately preceding the one-year anniversary of a shareholder's purchase of the shares. See the memorandum for additional details.
IMPORTANT INVESTMENT CONSIDERATIONS
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 303.501.8804 or visit www.FCREIF.com Read the prospectus or summary prospectus carefully before investing.
Diversification does not ensure a profit or protect against a loss.
Investing in the Fund involves risks, including the risk that an investor may receive little or no return on his, her or its investment or that an investor may lose part or all of such investment. Therefore, investors should consider carefully the following principal risks before investing in the Fund. There is no assurance that the Fund will achieve its performance or investment objectives or achieve any targeted rate of return or return of capital or any target distribution yield. Shareholders may lose some or all of their invested capital, and prospective investors should not purchase the Fund' shares unless they can readily bear the consequence of such loss. Limited liquidity is provided to shareholders only through the Fund's quarterly repurchase offers. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. The Fund's investments are also subject to liquidity risk. Funds with principal investment strategies that involve securities of companies with smaller market capitalizations, derivatives or securities with substantial market and credit risk tend to have the greatest exposure to liquidity risk.
As a non-diversified investment company, the Fund may invest more than 5% of its total assets in the securities of one or more issuers. The Fund may therefore be more susceptible than a diversified fund to being adversely affected by events impacting a single borrower, geographic location, security or investment type. The Fund's investments in real estate debt are expected to be secured by real estate assets. The Fund's concentration in the real estate sector may increase the volatility of the Fund's returns and may also expose the Fund to the risk of economic downturns in this sector to a greater extent than if its portfolio also included investments in other sectors. Further, there is no limit regarding the amount of Fund assets that may be invested in any single geographic area within the United States. To the extent the Fund concentrates its investments in a limited number of assets or geographic areas, the Fund will be subject to certain risks relating to concentrated investments. Commercial real estate debt instruments (e.g., mortgages, mezzanine loans and preferred equity) that are secured by commercial property are subject to risks of delinquency and foreclosure and risks of loss that are greater than similar risks associated with loans made on the security of single-family residential properties. The Fund expects to invest a portion of its assets in pools or tranches of commercial mortgage-backed securities (CMBS)*. In a rising interest rate environment, the value of CMBS may be adversely affected when payments on underlying mortgages do not occur as anticipated, resulting in the extension of the security's effective maturity and the related increase in interest rate sensitivity of a longer-term instrument. Subordinate CMBS are also subject to greater credit risk than those CMBS that are more highly rated. Mortgage loans on commercial properties generally lack standardized terms, which may complicate their structure and increase due diligence costs. Commercial mortgage loans also tend to have shorter maturities than single-family residential mortgage loans and are generally not fully amortizing, which means that they may have a significant principal balance or “balloon” payment due on maturity.
Placement Agent: Foreside Fund Services, LLC
*A security backed by commercial and multifamily mortgages rather than residential real estate.