Black Creek Group is pleased to announce the three-year anniversary of its strategic partner PREDEX, a 1940 Act interval fund, during which time the fund has exceeded more than $200 million in assets under management (AUM).
“We congratulate PREDEX on hitting these milestones and look forward to continuing our partnership and bringing real estate solutions to investors,” said Raj Dhanda, chief executive officer, Black Creek Group. “With many investors being under allocated to commercial real estate, often holding less than 1%, PREDEX offers them with much needed access to one of the strongest performing asset class over the last 20 years.”
PREDEX offers a gateway to private core real estate that was once limited to the largest institutional investors. The fund provides the opportunity to invest in a portfolio of 23 real estate funds that own over 2,600 properties, primarily Class A, in the top 20 metropolitan areas in the U.S. The expense limitation for Class I shares was lowered to 1.10% effective August 1, 2019 as a result of growth in AUM.
“We are pleased with the success we have seen over the past three years and are focused on providing a low-cost, convenient way to invest in private core real estate,” said Grayson Sanders, chief investment officer, PREDEX. “The fact that we have exceeded $200 million in AUM demonstrates investor confidence in not only the commercial real estate sector but also PREDEX as we continue to be focused on providing investors with a way to further diversify their portfolios and maximize their risk-adjusted returns.”
About Black Creek Group
Black Creek Group is the parent of Black Creek Capital Markets, LLC, a registered broker-dealer which is the exclusive dealer manager for PREDEX.
Black Creek Group is an experienced real estate investment management and development firm that has bought or built over $19 billion of investments throughout its more than 25-year history. The firm manages diverse investment offerings across the spectrum of commercial real estate – including office, industrial, retail and multifamily – providing a range of investment solutions for both institutional and wealth management channels. Black Creek Group has nine offices across North America with more than 300 professionals. More information is available at blackcreekgroup.com.
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 may result 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.
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 the PREDEX Fund. 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. The PREDEX Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Black Creek Capital Markets, LLC is the exclusive dealer manager for the Fund. PREDEX Capital Management, LLC and Black Creek Capital Markets, LLC are not affiliated with Northern Lights Distributors, LLC.
Black Creek Group is a sponsor of The DI Wire, and the article was published as part of their standard directory sponsorship package.