Equity Residences launched their first fund, the Equity Villa Fund, in 2012 to create a luxury real estate investment. The Equity Villa Fund, closed to new investors in Q1 2016 with 100 limited partners and 12 luxury vacation properties. The managers say the value of the fund properties has increased over 40% since inception, while providing investors rent-free vacations or rental income dividends.
The more recent Equity Platinum Fund focused on sourcing property at prices below current market values and delivering luxury vacation and concierge services to their investors. The Fund has acquired a portfolio of 14 vacation homes.
The Equity Platinum Fund 2 is the latest investment option which launched in 2022, with plans to raise $50 million and to acquire 16 vacation homes.
These private investment funds are based on the desire to enjoy and invest in a diversified portfolio of vacation residences, each offering personal vacation experiences, the comforts of a private vacation home and significant long-term investment growth potential. For each fund, after 10 years, the properties will be sold, and investors receive their money back, plus any positive investment returns.
Overall the fund investors occupy the homes about 35% of the time and the fund managers rent them out for another 35% of the time. This rental income offsets the operating costs for the homes and means that there are typically low to no annual dues for investors.
|Initial Investment Fee (range)||$218,500 - $764,750|
| Annual Dues (range)
||$0 - $18,810|
|# Nights||7 - 70|
|# of homes||25+|
|# of locations||25+|
|Average Value||$1.5m - $4.0m|
|Members per Home||10:1|
|% Homes owned||100%|
If you're seriously considering joining a destination club then download "Destination Clubs: A Guide for Prospective Members". The Guide will give you an in-depth view of the different clubs including their homes, services and questions to consider prior to joining. We do ask you to register to download the Guide, but it puts everything in one place and has been widely acclaimed over the nine years we've published it.
If you're seriously considering joining Equity Residences then download the SherpaReport "Destination Clubs & Residence Funds: A Guide for Prospective Members". This free Guide, published and updated every year since 2007, will give you an in-depth view of the different clubs, including their homes, services and questions to consider prior to joining. We do ask you to register to download the Guide. The related article below also have more information about Equity Residences.