Dear Valued Investor,
As an important part of the Colonial Impact Fund II (the “Fund”) family, we are pleased to share with you the quarterly investor newsletter from Q1, 2021. The Fund has completed its 24th full quarter of operations.
With the Fund wind-down in process, brought on by the market conditions associated with the covid-19 pandemic, assets under management were just over $5.2MM at the end of Q1, represented by the total unpaid principal balance of loans held plus the value of the real estate owned by the Fund.
The Fund’s primary disposition model is to sell individual assets to the downstream retail buyer network. Buyers purchased 54 assets which in part contributed to the Fund’s 4.06% quarterly return, and which also created a “return since inception” of 10.49% (both annualized figures). The average acquisition price per asset in Q1 was approximately $74,000 on 11 assets.
We will continue monitoring loss reserves, adjusting asset valuations, seeing an increase of borrower defaults, and otherwise continued slowing of overall income to the Fund. All of this, and other factors, will have significant and ongoing implications to the Funds operations, performance, and investor distributions.
We are assessing operations and taking the steps we deem prudent and important, in our best assessment of the order of their importance to safeguard, preserve and protect your investment to the best of our ability. The Fund is no longer accepting new investor capital or new redemption requests from existing investors.
These unprecedented market conditions will require a significant amount of patience from all stakeholders, including borrowers, vendors, investors, and managers.
Thank you for your continued trust and confidence.
Regards,
Ryan Parson, MBA, CFP®, ChFC
Director-Investor Relations
888-633-1113
[email protected]
www.ColonialCapitalManagement.com
Neither this document nor its contents are an offer to sell or distribute securities in any jurisdiction.
