The Fund
The Private Capital Fund, LLC is a Mortgage Income Fund managed by Stonecrest Managers, Inc. The Private Capital Fund provides a combination of high return with moderate risk by investing in loans that are properly underwritten and secured by trust deeds with substantial equity. Income is generated from the interest-bearing loans made by the Fund and distributed to its Members or reinvested into their accounts on a monthly basis.
The Fund, also referred to as Mortgage Pool, provides the benefit of individual trust deed investments without the limitations of actively pursuing and managing them yourself.
Stonecrest Managers created the Private Capital Fund to allow individual investors the opportunity to participate in a diversified real estate-secured investment, which consists of first and second trust deeds on residential and commercial California property. The Fund’s investment objectives are to provide investors with a high level of monthly income, preserve capital and enhance the diversification of an investor’s portfolio.
For more information on the Private Capital Fund contact info@stonecrestmanagers.com.
Benefits
High Monthly Income
The Fund dividends can be distributed monthly, reinvested or a combination of both.
Portfolio Diversification
The Fund offers investors the potential to diversify their portfolio by investing in loans secured by California real estate. Stonecrest Managers’ strategy has provided another level of diversification within the Fund by making loans on residential, commercial and land.
Capital Preservation
The Fund only provides loans when there is sufficient equity in the underlying property to secure and protect your investment. Each loan must adhere to strict guidelines with respect to the amount of equity in the property. The relative loan-to-value ratio and the debt ratios for the borrower.
Alternative Investment for Retirement Funds
Self-Directed retirement accounts such as IRA, 401K, Profit Sharing and/or Pensions provide a great way to invest funds while maintaining the tax advantages of the original accounts.
Experienced Management Team
The Private Capital Fund is managed by an experienced team of lending and real estate professionals. The management team represents significant experience in conducting loan and property evaluation and analysis to manage risk and maximize return. Stonecrest Managers have funded over $800 million in real estate loans since its inception in 1986.
Performance
The Private Capital Fund paid an average annualized rate for 2006 of 9.2%, 2007 of 9.3% and 2008 of 8.7% If you elected to reinvest your dividends in 2008, you would have earned 8.7% average annualized yield.
| 2006 | 9.2% |
| 2007 | 9.3% |
| 2008 | 8.7% |
| 2009 | 7.2% |
| 2010 | 7.2% |
Annualized Return on a Monthly Basis
| Jan '11 | 7.2% |
| Feb '11 | 7.2% |
| Mar '11 | 7.2% |
| Apr '11 | 7.2% |
| May '11 | 7.2% |
| June '11 | 7.2% |
| July '11 | 7.2% |
| Aug '11 | 7.2% |
| Sept '11 | 7.2% |
| Oct '11 | 7.2% |
| Nov '11 | 7.2% |
| Dec '11 | 7.2% |
Loan Portfolio Highlights
Private Capital Fund, LLC
A California Mortgage Pool
Loan Portfolio as of December 31, 2011
| Gross loan portfolio dollars: | $38,354,917 |
| % of loan dollars in first position: | 70% |
| % of loan dollars in second position: | 30% |
| Number of loans in the portfolio: | 114 |
| Average loan value: | $345,540 |
| Average loan-to-value on loans in the fund: | 44.95%* |
| *calculated when loans are initially funded | |
Loans by property type
| Commercial | 61.48% |
| Residential | 29.38% |
| Land Only | 9.14% |
Loan Portfolio Investment Strategy
The Private Capital Fund uses a proven and highly effective evaluation and screening process to enhance the security and return of its investments. Each loan that is funded meets the necessary guidelines designed to mitigate as much risk as possible.
The Managers of the Fund use the following guidelines in addition to conducting a formal review of each loan application to ensure that the borrower is well suited for the Fund’s loan portfolio.
- Sufficient equity in underlying property
- Acceptable debt-to-income ratio for borrower
- Full appraisals and an independent value confirmation
- Title insurance to protect loan's position
- Fire and casualty insurance on the property
- Loan committee reviews on each application
- Third party loan servicing organization with automated tracking and reporting
The loan committee takes great care in following these processes and guidelines to ensure the portfolio delivers a solid return on your investment.