USQ’s Core Real Estate Fund Exceeds $100 Million AUM

KENNETT SQUARE, PA – (BUSINESS WIRE) – Union Square Capital Partners’ (ticker: USQIX) USQ Core Real Estate Fund, a closed-ended, interval fund, has more than $ 100 million in assets under management.

The Fund’s primary investment objective is to achieve a return consisting of both ongoing income and long-term capital appreciation with moderate volatility and low correlation with broader markets. Union Square Capital Partners implements this strategy by investing in the core private equity real estate funds that make up the NCREIF Fund Index – Open End Diversified Core Equity (NFI-ODCE). The strict index requirements of the NCREIF include private equity real estate in the “core” style, which use a low proportion of debt in stable US commercial real estate with high occupancy and are rented to tenants with good credit ratings.

“Exceeding the $ 100 million AUM mark is a significant endorsement of our investment approach,” said Thomas Miller, CEO and CIO of Union Square Capital Partners, USQIX’s investment advisor. “Due to the strong returns and low correlation, we continue to see strong acceptance of the fund as investment professionals look for alternatives to fixed-income and traditional stocks.”

Since launching the Fund1 four years ago, USQIX has delivered strong risk-adjusted returns with no correlation to broader markets. As of September 30, 2021, the three-year correlation to the S&P 500 Index and the BBgBarc US Agg Bond Index was 0.01 and -0.01, respectively. In addition, the Fund has made 16 quarterly dividends1 at an annual rate of 4.16% 2 since inception, the majority of which include deferred taxes.

Matt Henry, Managing Partner and Chairman of Chatham Financial added, “We are very pleased that Union Square Capital Partners, a subsidiary of Chatham Financial, is reaching this milestone. Cost-conscious, high-quality private real estate can improve the risk-return profile of most portfolios. For many investors, however, private real estate is underrepresented. We started this business to give the RIA community access to a traditionally inaccessible asset class. ”

About Union Square Capital Partners

Union Square Capital Partners, LLC is a wholly owned subsidiary of Chatham Financial. It was founded to provide access to fee-conscious investment products of institutional quality, to create clarity through their product design and customer interactions, and to instill trust in the market. Their aim is to influence the markets they serve in order to make them more transparent, more efficient and less risky for the participants. You want to be perceived as a partner rather than a third party provider. They do this by constantly putting the long-term interests of customers first.

1. Inception date is the 27.09.2017

2. Distributions are paid quarterly. The annual dividend rate is calculated based on the dividends paid per share over the past four quarters divided by the NAV at the beginning of the period. Distributions include all distribution payments regardless of source and may include net income, capital gains, and / or return on capital employed (ROC). ROC should not be confused with revenue or income. The notice regarding Section 19a-1 of a Fund contains additional information on the composition of the distribution and is available at www.usqfunds.com. The final determination of the tax character of a distribution is made on Form 1099 DIV and will be sent to the shareholders. On a tax basis, the estimated component of the cumulative distribution since inception includes a return on investment of 67% per share. This amount is an estimate and the actual amounts and sources for tax return purposes may change in the final determination of tax characteristics and are subject to change due to tax regulations. See additional information below.

Definitions

Correlation is a statistic that measures the extent to which two asset classes (or stocks) move relative to one another. Two asset classes that have a high correlation move in the same direction as the markets rise and fall. Two asset classes with negative or inverse correlation move in opposite directions in rising and falling markets. The closer the correlation statistics between two asset classes are to zero, the more independently the asset classes move from one another.

Indices

BBgBarc US Agg Bond Index – The Bloomberg Barclays US Aggregate Bond Index is an unmanaged market-weighted index of investment grade, US dollar-denominated fixed income debt including sovereign, corporate, asset-backed and mortgage-backed Bonds with a term of at least one year.

NFI-ODCE – The NCREIF Fund Index – Open End Diversified Core Equity (NFI-ODCE) consists of private real estate equity funds that meet certain criteria, e.g. B. Leverage (less than 35%), operational business (at least 75% investments in properties that are 75% or more let), industry and geographic diversification, and investments in core real estate (at least 75% in offices, industry -, residential and retail real estate)

S&P 500 Index The S&P 500 Index is a market capitalization weighted index of 500 common stocks selected for market size, liquidity and industry group representation to track the performance of US stocks.

You cannot invest in an index directly.

Risk warnings

Investing involves risks. Loss of capital is possible. Investing in real estate involves special risks, including (i) changes in general economic and market conditions; (ii) changes in the value of real estate; (iii) risks related to local economic conditions, urban development and increased competition; (iv) increases in property taxes and business expenses; (v) changes to building code laws; (vi) casualty and conviction losses; (vii) fluctuations in rental income, neighborhood values, or property attractiveness to tenants; (viii) the availability of funding; and (ix) changes in interest rates and leverage. In addition, there are particular risks associated with certain real estate sectors or the real estate business in general. The fund is not intended to be a complete investment program, but is intended to help investors diversify into real estate. Diversification does not guarantee a profit or a guarantee against a loss.

The Fund’s distribution policy is to make quarterly distributions to shareholders. The amount of the quarterly distributions (including any capital repatriation) is not fixed. However, this distribution policy can be modified. The Fund’s distribution amounts are calculated on the ordinary income from the underlying investments, including short-term capital gains from the disposal of those investments. Shareholders should not assume that the Fund’s distribution will be net income. Part of the distributions will consist of a capital repayment based on the nature of the distributions from the underlying holdings, primarily real estate investment trusts. The final determination of the source and tax characteristics of all distributions will take place after the end of the year. Shareholders should note that the capital repayment will reduce the tax base of their Shares and may increase the taxable gain, if any, on the sale of their Shares. There is no guarantee that the Fund will continue to announce distributions or will proceed at these rates.

All tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and is not intended to be exhaustive. Investors need to consult their tax advisor or their particular situation. Neither the Fund nor any of its agents may provide legal or tax advice.

Before investing in the Fund, you should carefully consider the Fund’s investment objectives, risks, fees and expenses. For a copy of a prospectus containing this and other information, please visit our website at www.usqfunds.com or call 1-833-USQ-FUND [1-833-877-3863]. Please read the fund’s prospectus carefully before investing.

The USQ Core Real Estate Fund is distributed by Quasar Distributors LLC.