Avatar Financial Raises $50M for New Fund in Just Five Months

Avatar Financial Group raised $50 million for its new fund, Avatar Commercial Mortgage REIT LLC, in its first five months. Avatar launched the new commercial mortgage fund with a REIT structure in mid-2021 to deliver a streamlined investment experience and provide steady capital deployment.

Accredited investors still have an opportunity to participate in the REIT fund, which continues to raise money through an offering of membership interests and allows investors to become equity owners in the entire fund rather than only in a particular loan. The fund reported an 8.99 percent weighted average return and achieved net distributions of 8 percent in the past seven consecutive monthly distributions since launch.

“In 2022, investors and lenders looking for opportunities and risk mitigation have more options than ever. Investors are being drawn towards alternatives like Avatar Commercial Mortgage REIT LLC to meet challenges faced in the market today that includes replacing or supplementing their retirement income and bolstering their fixed income returns,” says T.R. Hazelrigg IV, president and co-founder of Avatar. “Current performance of bonds and CDs coupled with rising costs of living across the nation changes the formula for retirement entirely.”

A mortgage REIT can now be structured to deliver investors the benefits of a debt fund with a tax-efficient REIT structure.