Digital Liquidity Fund
Commercial Real Estate Investments
Our digital liquidity fund disrupts real estate investing by providing liquidity to commercial real estate investments in the U.S. and Canada through the option of converting investor interests in the fund to digital shares.
If investor interests are converted to digital shares and an exchange accepts such shares for listing, the shares should become tradeable. This will allow for fractionalized ownership interest to investors that couldn’t otherwise gain access to private real estate investments while providing liquidity to all investors.
Open-end fund with a three-year lockout, then fully redeemable with twelve-months notice, unless a digital and tradeable share is created sooner, in which event the fund may continue in perpetuity.
When investor interests are converted to digital shares and/or after the lockout period ends, the fund will be examined by an independent certified public accounting firm and the fund will have a net asset valuation performed quarterly.
The fund is targeting a gross IRR of 12% to 14% on an annually compounded basis.
1. Digital Liquidity Fund is a Reg D 506(c) private placement, in which TwinRock has the right, but not the obligation to convert the fund’s investments into digital shares. TwinRock will monitor the developments and general acceptance of digital shares in the market before converting investor interests into digital shares.
Target Area Map – North America
Real Estate Investment Strategy
While the Fund can acquire, joint venture, and/or lend on commercial and/or residential real estate in the U.S. and Canada, and invest in or purchase other real estate related assets or securities – the Fund will primarily focus on:
- Triple net-lease assets, guaranteed by credit tenants, in markets with no to low state income tax (0-6%), such as Nevada and Oklahoma;
- Multi-family in markets that we have existing operating experience, such as Nevada and Oklahoma; and
- Student housing in select supply-constrained markets near tier one universities.
The Fund’s investment strategy will also consider macroeconomic factors, in addition to state income tax rates, such as: demand and supply, rent appreciation, total return, population growth, employment, and household income.
The Fund’s trip net-lease, multi-family, and student housing products will benefit from hands on direction by the TwinRock team to improve valuation.
The Fund may acquire assets from TwinRock’s other existing real estate holdings, in various other funds.
- If Digital Liquidity Fund (“DLF”) shares are created and the Fund engages in an offering, shares will be sold at prices determined in the sole discretion of the Fund, currently anticipated to be $10 per share.
- Management will not receive any free digital shares in connection with the potential offering.
- Digital Shares will represent Membership interests in the Fund and may be tradeable if an exchange accepts them for listing, given the rules and conditions of a restricted security are met per SEC guidelines.
Digital Share Value
- As a digital share, the value of the share is mostly derived from the underlying real estate assets.
- In summary, digital share holders directly gain value from real estate value and share price appreciation.
- The digital shares will be examined by an independent certified public accounting firm and have a net asset valuation performed quarterly.