High net worth individuals (HNWI) invest in Humphreys real estate fund

If you had money to burn – say $ 500,000 – would you?

Probably not. As a “high net worth individual” you would probably put it somewhere to make more money. You would probably invest it in commercial real estate.

That said, Humphreys Capital, the real estate investment firm headed by former Oklahoma City mayor Kirk Humphreys, raised this year’s $ 70 million share offering for institutions and “high net worth individuals” – 20% more than in 2020.

This is the Humphreys Real Estate Income Fund, the company’s open flagship investment across all commercial real estate sectors. Monthly distributions are made to investors from institutions to “wealthy private individuals” (OK, that’s enough: HNWI.)

The fund has a diverse portfolio of 72 high income properties in 15 states valued at more than $ 675 million – apartments, warehouses, office buildings and retail stores. Investors have achieved a net internal return of 13.5% since inception.

111 investors were involved in this year’s capital increase, 62 new and 49 returning.

Who are these people?

“The team will not be able to provide specific investor profiles,” said a spokesman.

Of course not. HNWI in particular generally don’t like having their HNW known. Humphreys Capital wouldn’t even give anonymous examples like: Oilman, early 60s, caught between booms. Or the cardiologist in his late 50s prefers to invest in something tangible.

Humphreys investors are diverse, said Grant Humphreys, president.

“At one end of the spectrum we have institutional investors who manage billions of dollars for private foundations, sovereign tribes, and nonprofits,” he said.

Then there are the HNWIs.

“We also look after individual investors – entrepreneurs, entrepreneurs, family businesses – who provide money to retire, manage their lands and maintain prosperity across generations,” he said.

“High Net Worth Individual” – how such verbose words get stuck in language is a mystery to me. “Rich” and “rich” are relative, but “rich” or “rich” are, so to speak, more economical ways.

Investopedia uses at least the word “rich” to explain HNWI.

“While there is no precise definition of how rich someone needs to be to fit into this category, high wealth is generally expressed in terms of cash and cash equivalents of a certain number. The exact amount will vary by financial institution and region however, it usually refers to individuals with net worth greater than 7 numbers, “it says.

Investopedia goes on to explain the HNW values:

“The number most cited for high net worth membership is around $ 1 million in cash and cash equivalents,” it said. “An investor with less than $ 1 million but more than $ 100,000 is considered” wealthy “or perhaps a” sub-HNWI “.

“The high end of HNWI is around $ 5 million. At this point, the client is referred to as a” very HNWI. “Investopedia says that a person in excess of $ 30 million would classify an individual as an” ultra HNWI ” .

VHNWI! UHNWI! Who knew As an NVHNWI (not very wealthy person), I had no idea.

“HNWIs are in great demand with private asset managers,” says Investopedia in its basic introduction to these people. “The more money a person has, the more work it takes to obtain and maintain those assets.”

Keyword Humphreys Capital.

“In this time of volatility and market uncertainty, investors are looking for a safe haven where their position is anchored in real assets,” said Grant Humphreys. “With the Humphreys Real Estate Income Fund, we offer an investment vehicle of institutional quality that has generated constant monthly dividends for the past nine years.”

The looming inflation makes commercial real estate attractive for its relative stability, he said.

Dear HNWI, if you missed your chance (or prefer NVHNWI if your ship comes in), Humphreys will be doing another capital increase for its Humphreys Real Estate Income Fund next year.

Meanwhile, Humphreys specialists are working “behind the scenes” – where HNWI prefers to hang out – on the company’s closest real estate growth fund, said Ben Stewart, chief executive of investor relations.

Real estate editor Richard Mize works on Oklahoman’s real estate division, covering housing, construction, commercial real estate and related topics for the newspaper and Oklahoman.com. Contact him at [email protected]. Please support his work and that of other Oklahoman journalists by subscribing to http://subscribe.oklahoman.com.