Alternative Investment Fund Overview
The Kingsbridge Alternative Strategies Fund is an alternative to traditional yield investments like bonds and private credit. The “alternative yield” is generated by investing in a portfolio of home equity investments (HEIs) and the equity certificates of securitized pools of home equity investments.
The Kingsbridge Alternative Strategies Funds was established in 2009 with a contrarian and innovative approach to alternative investments. The fund’s strategy began in 2009 with a multi-strategy approach, which evolved to a single strategy fund as of August 2019, focused solely on investing in Home Equity Investment Contracts.
As the only pure play fund focused on this developing asset class, the Kingsbridge Alternative Strategies Fund has emerged as a leader in investing in the formerly inaccessible, owner occupied residential real estate market.
The Kingsbridge Alternative Strategies Fund, LP is an open ended, private fund exempt from registration under Regulation D 3(c)5, that is open to investors that qualify as Accredited Investors and Qualified Clients.
A great investment strategy has three characteristics:
• A strong demand for capital • The capital is used to solve a problem we understand • There is adequate compensation for risking our capital
-David J. Dunn – Portfolio Manager
Portfolio Construction
• Kingsbridge “Buy Box” purchases high quality contracts • Continual contract purchases throughout housing market cycles • Residential real estate is historically considered a stable asset class and long-term store of value • Seasoned portfolio of existing Home Equity Investments • Forward flow capacity to meet investor demand
Risk Mitigation
• Geographic diversification of contracts • Contract Structure provides downside mitigation • Significant homeowner equity provides for “skin in the game” and alignment of interests among the investor and the homeowner.
The Impact
• On average homeowners improve their credit by 35 points in 12 months • As a non-debt solution, access to capital is a relief to many homeowners • Direct impact to underrepresented populations who may have systematically been denied access to capital • For seasonal and Gig workers Home Equity Investments provide a solution beyond credit cards and small business loans • Later stage homeowners help provide for retirement or a bridge to sale while being more transparent than Reverse Mortgages.
Kingsbridge Alternative Investment Fund Highlights:
• Alternative yield U.S. residential real estate investment strategy • Low correlation to public market equity or debt • Inflation hedge: positive correlation to inflation • Recession mitigation: built-in structural downside dampening averaging 18% • Pure play investment vehicle focused on Home Equity Investments