Reasons to invest
Seeks total returns with consistent distributions.* Institutional investors seek private core real estate for the opportunity to generate total returns backed by consistent cash flows.
Low correlation.** PREDEX offers access to an asset class that has the potential to be less volatile and less sensitive to movements in the stock market, offering the opportunity to mitigate portfolio risk.
Moderate volatility. The underlying private real estate funds invest in commercial properties with low leverage, high occupancy, and are generally leased to credit tenants.
Cost conscious.*** PREDEX offers low fees which allows investors to benefit by keeping more of their returns.
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*Distributions consist of ordinary income, net capital gains, and/or a return of capital (ROC) of your investment in the Fund. ROC should not be confused with yield or income. There is no assurance that the Fund will continue to declare distributions or that they will continue at current rates.
**Correlation is a statistic that measures the extent to which two asset classes (or securities) move in relation to each other. Two asset classes that have a high correlation move in the same direction as markets rise and fall. Two asset classes with negative or inverse correlation move in opposite directions as markets rise and fall. The closer the correlation statistic between two asset classes is to zero, the more independently the asset classes move with respect to each other.
***The annual asset management fee is 0.55%. The Fund’s investment adviser has contractually agreed to reduce its fees and absorb expenses of the Fund at least until August 31, 2024 so that the annual operating expenses (including offering expenses, but excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) will not exceed 1.10%, 1.35% and 1.35% per annum of the average daily net assets of Class I, Class T and Class W, respectively.
The Fund is a continuously offered, closed-end management investment company that is operated as an interval fund. Shares of the Fund will not be listed on any securities exchange, are not redeemable and not appropriate for investors requiring liquidity. You may receive little or no return on your investment or you may lose money by investing in the Fund.
The Fund will not invest in real estate directly but will concentrate its investments in other funds that invest principally in real estate and real estate related industry securities (“Underlying Investment Vehicles”). Portfolio returns will be significantly impacted by the performance of the real estate market. In general, real estate values can be affected by a variety of factors: supply and demand for properties, the economic health of the country or of different regions, and the strength of specific industries that rent properties.
PREDEX’s distribution policy may, under certain circumstances, have certain adverse consequences to the Fund and its shareholders because it results in a payment that is a return of capital, rather than a distribution. Fund shareholders will bear two layers of fees and expenses: asset-based fees and expenses at the PREDEX level, and asset-based fees, incentive allocations or fees and expenses at the Underlying Investment Vehicle level. PREDEX’s performance depends in large part upon the performance of the Underlying Investment Vehicle managers and their selected strategies. The Fund is non-diversified and its performance may be more sensitive to any single economic, business, political or regulatory occurrence because PREDEX may invest more than 5% of its total assets in the securities of one or more issuers.
Liquidity only provided through quarterly repurchase offers for no less than 5% of the Fund’s shares at net asset value. There is no guarantee that an investor will be able to sell all shares in a repurchase offer. Quarterly repurchases by PREDEX of its shares typically will be funded from available cash or sales of portfolio securities. Payment for repurchased shares may require PREDEX to liquidate portfolio holdings earlier than the Adviser otherwise would liquidate such holdings, potentially resulting in losses. The use of leverage (borrowing money to purchase properties or securities) will cause an Underlying Investment Vehicle to incur additional expenses and significantly magnify losses in the event of underperformance of the assets purchased with borrowed money.
Investors should carefully consider the investment objectives, risks, charges and expenses of PREDEX. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-877-940-7202. The prospectus should be read carefully before investing. PREDEX is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Union Square Capital Partners, LLC is not affiliated with Northern Lights Distributors, LLC.