DENVER, CO – JCR Capital Investment Corporation (“JCR”), an alternative investment manager, today announced the launch of its fourth fund, JCR Capital Income Plus Fund IV, L.P. (“Fund IV”).
JCR has chosen to pivot Fund IV’s strategy to target more value-add cash flowing properties with shorter investment periods than JCR’s previous funds. The fund will focus exclusively on middle market properties (valued at $50 million and less) in the multifamily, industrial and office sectors, as well as select retail. Fund IV will seek to generate a 6% to 7% current yield and a 12% net IRR, without the use of leverage at the fund level. JCR will cap the fund size at $200 million.
JCR believes the smaller size of the fund and lower risk-return profile is prudent given the current market environment.
“The high values in the stock market, along with rising interest rates and uncertainty surrounding the current political environment, make this the right time to invest more conservatively and continued focus on principal protection,” said Jay Rollins, managing principal of JCR Capital. “Limiting the fund to $200 million and focusing on short duration investments allows us to deploy and realize the capital quickly enough to navigate this uncertain environment with confidence. We feel much better taking reinvestment risk than duration risk at this time.”
JCR believes this fund is an excellent alternative to the proliferation of leveraged debt funds entering the market. “With no fund-level leverage, Fund IV will be much less susceptible to macro credit market issues that can, and have in the past, decimated leveraged debt funds when the market turns south,” said Rollins. “Additionally, the majority of the fund’s investments will have upside participation features, which protects principal at the portfolio level and provides more upside than a debt fund if the market remains healthy.”
About JCR Capital
JCR is an alternative investment manager that provides capital solutions to middle market commercial real estate sponsors. Investing on behalf of insurance companies, public pension funds, endowments, foundations, family offices and high-net worth individuals, JCR partners with sponsors whose transactions are in need of financing but are under-served by institutional capital. JCR was founded in 2006 and is managed by Jay Rollins and Maren Steinberg. For more information, visit www.jcrcapital.com.
This communication is for informational purposes only and does not constitute an offer to sell any security, which can only take place after a prospective investor is confirmed as accredited and receives offering documents. Fund terms are not final until offering documents are distributed, and target performance figures are estimates. Market commentary, quotes and forward-looking statements are opinions subject to change. All investments have risk of loss including principal.