To continue the momentum from Equity Estates Funds I, II, and III, CEO and Founder, Philip Mekelburg announced the launch of Equity Estates Fund IV, an alternative investment that buys luxury vacation residences for use by the investors.
Founded in 2006, Equity Estates has raised and deployed more than $125 million toward the purchase of luxury vacation homes around the world. These homes are owned and enjoyed by investors across Equity Estates Funds I, II, and III and these investors have completed more than 15,000 vacations during this time.
Now, Fund IV is slated to raise approximately $50 million and acquire up to twelve vacation residences in the range of $2 million to $5 million each. These homes will be located in some of the most appealing destinations including beach, mountain, metropolitan, and leisure settings. Investors enjoy the dual benefits of vacationing in these beautiful homes, while also participating in the potential appreciation on the sale of properties at the end of the ten-year life of Fund IV. As with all the other funds from Equity Estates, net proceeds are first distributed to investors until they receive back 100% of their investment and then they receive 80% of proceeds thereafter. Plus, the investors in Fund IV will have access to the entire curated portfolio across all the funds, comprising more than 60 destinations in 25 countries around the globe.
“With Equity Estates Fund IV we’re targeting a handful of new destinations and adding more properties to our portfolio in existing destinations that are popular with the current investor groups. I look forward to buying properties during a timeframe that may turn out to be a softened luxury marketplace.” says Mekelburg. “In addition, we have our eyes on in-home technology upgrades to enhance the vacation experience for our investors and to provide more detail about local hotspots at the touch of a button. We will eventually roll this out to all our accommodations across the board.”
The current funds have homes in Anguilla, Costa Rica, Turks and Caicos, South Carolina, New York, Aspen, Telluride (pictured below), Vail and London to name a few locations.
“We sold out Fund III at the end of October” Philip Mekelburg told SherpaReport “and now we’re moving the needle further upscale in terms of quality, looking at homes that are a little more bespoke for Fund IV.”
Philip said he wasn’t yet ready to share specific locations for Fund IV, but noted the overall mix will be roughly 60% beach and 40% city/mountain/leisure.
Investment in Fund IV starts at $275,000, with annual dues of $13,500 for 15 nights of usage.