The Celernus Absolute Growth Fund principally invests in a diversified portfolio of actively-managed, private equity real estate assets. The fund augments its exposure to equity real estate assets with investments in mortgage-backed securities, private credit assets and other alternative fixed income securities. The strategy of the Celernus Absolute Growth Fund is twofold: 1. To generate sufficient cash flow to provide positive monthly returns, and 2. To achieve meaningful capital gains by purchasing, developing and monetizing real estate assets.
The Celernus Absolute Growth Fund seeks to achieve high single-digit/low double-digit annual returns over a market cycle. It invests in various private, cash flow-generating fixed income securities that generate positive monthly returns. These securities typically account for a third of the fund's overall assets. The fund also purchases, develops and monetizes private equity real estate assets. These assets account for about two-thirds of the fund's assets. The life-cycle of these private equity real estate investments is usually measured in months-to-years, depending on the size and complexity of the particular project. The return profile of these projects maps to their development cycles, such that capital gains are realized later in the cycle following valuation and/or liquidity events. The return profile of the Celernus Absolute Growth Fund is unique and heavily impacted by the progress of the real estate projects that it develops. This means that its returns are expected to be uncorrelated with those of publicly-traded equity and fixed income securities. In the context of an investment portfolio, the fund provides significant diversification benefits. It reduces the reliance of investment portfolios on the equity risk premium to drive returns. As such, the fund reduces portfolio volatility by: 1. Requiring less reliance on equity exposure to generate returns and 2. Generating its own low-volatility return profile.Fund Files