Redwood Investment Management's Redwood Real Estate Income Fund Celebrates Outstanding First Year

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Jun 20, 2024, 18:37 ET

$230+ Million in Investor Capital Raised in First Year of CREMX

SCOTTSDALE, Ariz., June 20, 2024 /PRNewswire/ -- Redwood Investment Management is proud to celebrate the first anniversary of its Redwood Real Estate Income Fund, CREMX.

Launched on June 23, 2023, the Redwood Real Estate Income Fund is designed to offer all investors, including non-accredited and non-qualified individuals, access to private real estate debt through a single ticker, CREMX. This innovative fund features low minimum investment requirements and eliminates commissions and ticket charges, making it easier for advisors to incorporate private real estate debt into existing client advisory accounts alongside stocks, bonds, mutual funds, and ETFs.

"We introduced CREMX as a way to truly democratize access to private real estate debt that previously had been limited to institutions and ultra-high net worth investors. Being able to purchase the fund in the same manner and into the same account as purchasing a mutual fund or ETF is a game changer for financial advisors and their clients," said Managing Partner, Portfolio Manager, Richard Duff.

In the first year since its inception, Redwood Real Estate Income Fund:

Achieved an 8.73% annualized distribution yield
<55% Loan-to-Value Ratio
Maintained less than a 20-month loan to maturity
Experienced 0% drawdown
Raised and deployed $230 million in assets

The Redwood Real Estate Income Fund has demonstrated its ability to provide a unique and accessible investment opportunity, attracting a diverse range of investors. The fund's success underscores Redwood's commitment to delivering high-quality investment solutions that meet the needs of all investors.

As the fund continues to grow, Redwood Investment Management remains dedicated to offering exceptional service and innovative financial products that empower advisors and investors alike.

For more fund information, visit: https://www.cremxfund.com/

About Redwood Investment Management

Redwood Investment Management brings innovative investment processes and techniques historically only available for large institutions and ultra-high net worth individuals to ALL individual investors via its RiskFirst^® solutions. RiskFirst^® solutions are built on the belief that by managing Risk First, investment success will follow. These innovative investments include democratizing access to private debt secured by real estate, via a single ticker symbol and implementing the first turn-key asset allocation models incorporating public and private investments in a single account. Redwood partners with financial advisors to deliver these innovative, RiskFirst^® investment solutions through Redwood mutual funds, LeaderShares^® ETFs, and Engineered Risk-Budgeted Model portfolios. Redwood is a dedicated investment ally for financial advisors seeking to achieve better outcomes for individual investors. Learn more at www.redwoodim.com.

Redwood Real Estate Income Fund

The Redwood Real Estate Income Fund ("Fund") primarily invests in short-duration, low loan-to-value (LTV) private bridge loans backed by commercial real estate assets. The Fund's innovative structure allows it to directly invest in private real estate debt rather than in private funds, thereby avoiding multiple layers of fees.

Important disclosure information

Investors should carefully consider the investment objectives, risks, charges and expenses of the Redwood Real Estate Income Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained at redwoodmutualfunds.com or by calling 1-888-570-0805. The prospectus should be read carefully before investing.

‍This fund is an interval closed-end fund. The Fund is an appropriate investment only for those investors who can tolerate a high degree of risk and do not require a liquid investment. The Fund does not intend to list the Shares on any securities exchange and the Fund does not expect a secondary market in the Shares to develop. Because you will be unable to sell your Shares or have them repurchased immediately, you will find it difficult to reduce your exposure on a timely basis during a market downturn. All or a portion of an annual distribution may consist solely of a return of capital (i.e., from your original investment) and not a return of net investment income. The Fund has limited operating history and the shares have no history of public trading. The Fund is classified as "non-diversified" under the Investment Company Act. As a result, it can invest a greater portion of its assets in obligations of a single issuer than a "diversified" fund. The Fund may therefore be more susceptible than a diversified fund to being adversely affected by a single corporate, economic, political or regulatory occurrence. Although the Fund does not intend to invest in companies for the purpose of effecting change or influencing or controlling management itself, the Fund invests in companies that the Adviser believes have potential for capital appreciation resulting from such changes. The Adviser's evaluation of companies may prove incorrect, or the efforts which they invest may not be successful, or even if successful, may have unintended affects or cause the Fund's investment to lose value. The Bloomberg U.S. Treasury Index measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury. Treasury bills are excluded from this index. Investors should carefully consider the investment objectives, risks, charges and expenses of the Redwood Real Estate Income Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained at redwoodmutualfunds.com or by calling. The prospectus should be read carefully before investing. The Redwood Real Estate Income Fund ("CREMX") is distributed by UMB, member FINRA/SIPC.

Redwood Investment Management, LLC is a registered adviser with the United States Securities and Exchange Commission in accordance with the Investment Advisers Act of 1940. Such registration does not imply a certain level of skill or training and no inference to the contrary should be made. All materials are for informational purposes only and contain opinions of Redwood, which should not be construed as facts. Unless stated otherwise, none of the materials constitute an offer, nor a solicitation of an offer to invest in any of Redwood's products, and otherwise affiliated funds. Proceeding to access any information contained herein, users are deemed to be representing to be allowed to do so by applicable laws, regulations, and approval by Redwood having obtained a username and password. There can be no guarantee that any strategy described will achieve its objective. Past performance is not a guarantee of future results. There is risk involved when investing in securities, which can include loss of principal. Please read carefully the disclosures provided within each document. UMB is not affiliated with Redwood.

Definitions

Closed-end fund A closed-end fund is a type of fund that offers a fixed, limited number of shares. Closed-end funds are usually actively managed and concentrate on a specific industry or sector. Interval fund An Interval Fund is a distinctive category of closed-end investment fund, featuring shares that are not openly traded on the secondary market. Interval funds are designed to facilitate periodic repurchases, typically occurring on a monthly or quarterly basis. Distribution Yield is calculated as the distribution for a given month, multiplied by 12 (number of months in year) and divided by the NAV per share on 3/31/2024. Depending on when an investor purchased their shares, the annualized distribution rate may be higher or lower. Based on current estimates, the Fund expects a portion of the distributions to be a return of capital. There is no guarantee that investors will receive a distribution. Loan-to-Value (LTV) ratio is a financial term used to express the ratio of a loan to the value of the asset purchased with the loan. An LTV ratio is calculated by dividing the loan amount by the appraised value or purchase price of the property, expressed as a percentage. Loan-to-Maturity is the average duration that measures the weighted average time it takes for the principal of a loan or a portfolio of fixed-income securities to be repaid through interest and principal payments. Drawdown is the difference between peak to trough for any given period.

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Princess Gatela		Conner Small
Partner, VP of Marketing		Partner, VP of Advisory Solutions
Redwood Investment Management		Redwood Investment Management
[email protected]		[email protected]