DaVinci
Alternative
Income Fund


The Alternative Income Fund is an alternative to traditional income and equity funds. The Fund invests outside the public markets with the objective of offering higher returns while maintaining lower levels of volatility. The Fund is made up of private mortgages and cash flow generating real estate. The Fund’s objectives are to earn moderate rates of return while minimizing volatility, and have a low or zero correlation with stock and bond markets.

Fund strategy Highlights

Opportunistic
Approach

Latitude to invest in debt or equity, across real estate sectors, in Canada and the U.S., and occasionally, outside of North America.

High IRR

Identify and model assets which can generate 12%–18% IRRs over a period of 3 to 5 years.

QUICK FACTS
Minimum Investment Amount $25,000
F Class Purchase Code GCC102
NAV Monthly
Distributions 6% Annually / Paid Quarterly
Management Fee F Class 1%
Performance Fee 10%
Redemptions Monthly
Notice Period 90 Days
Structure Mutual Fund Trust
Eligibility RRSP, TFSA, RESP & RRIF
QUICK LINKS
AIF Monthly Fund Update
AIF Intro Presentation
AIF Monthly Returns
AIF vs. XRE.TO or Public REITS
Common Real Estate Terms and Definitions
Private Real Estate White Paper
Why Alternatives

Smaller
Property Size

Market inefficiency exists in properties under $100 million dollars, often overlooked by large institutions, yet generally too big for high net worth individuals.

Strong
Demographics

Identify geographic areas with significant demographic and
economic growth.

Examples: Texas post 2008, Florida in 2014, Cleveland in 2017, Nevada in 2019.

“Value Add”
Component

Looking for solid business plans to increase net operating income (NOI) via properties with rents below local market rates, replacing property managers, minor unit upgrades, etc.

No Construction/
Development Risk

Only buy cash producing assets; we do not take on development or construction risk.

Quality Operators

Partner with best of breed real estate operators with local teams on the ground that specialize in the targeted geography and asset type.

Why Alternative income fund?

Davinci’s Unique Investment Strategy

  • Actively managed, opportunistic approach
  • Cash flowing opportunities with near term distributions
  • No development projects
  • Focus on “value add” projects
  • Diversified by asset class, sector & geography
  • Proven partner relationships
  • No Additional leverage at fund level

WHY PRIVATE REAL ESTATE?

  • An alternative source of income and returns
  • Lower volatility than public REITs
  • Low correlation to other asset classes

Portfolio Details

 

Top Ten Holdings by Property

GROWTH OF $150,000

RISK RETURN

RETURNS & RISK SUMMARY (NET OF FEES AND EXPENSES)
Return Since Inception to April 30, 2021 189.03%
Annualized Monthly Return Since Inception 9.89%
Sharpe Ratio 3.36
Sortino Ratio 6.80
Down-Market Capture Ratio -27.25%

STRATEGY PERFORMANCE

Inception June 30, 2010. For periods ending April 30, 2021

Property by Classification

  • Multi Residential 55%
  • Retail 20%
  • Self Storage 12%
  • Student Housing 3%
  • Office 3%
  • Other 7%

Property by location

  • US 60%
  • Europe 22%
  • Canada 16%
  • Brazil 3%

feature Holdings

Secure Self Storage

Location: Oakville, Ontario
Sector: Multi-family residential
Investment Type: Debt | Mezzanine | Equity

Opportunistic Purchased from 3 elderly partners who were motivated to go their own ways
Smaller Size At $8.2 mil, much too small for most institutional investors
Demographics Located near the the QEW and Hwy 403, the area continues to grow
High Target IRR 20%+ targeted IRR over 5 years
No Developments Existing cash flowing property, no development risk
Value Add Replace property managers, new signage, marketing, solar panels on rooftops.
Quality Operators Specialists in self storage. Davinci has worked with the operators for over 9 years

COTTAGE COVE APARTMENTS

Location: Miami, Florida
Sector: Multi-family residential
Investment Type: Debt | Mezzanine | Equity

Opportunistic Off market opportunity to acquire large property in a great market (Miami)
Smaller Size $50M USD, too large for individuals, too small for most institutions
Demographics Fully occupied, as strong migration patterns to Florida continue
High Target IRR 18% IRR targeted over 5 years
No Developments only existing cash flow generating real estate
Value Add Family property manager replaced with professional property management firm; Unit renovations; rate increases; some common area improvements
Quality Operators An operator well known to Davinci

THE LUCKMAN

Location: Cleveland, Ohio
Sector: Apartment Buildings
Investment Type: Debt | Mezzanine | Equity

Opportunistic A Cleveland renaissance since 2017, resulting in high residential demand In the downtown core
Smaller Size $37.6 mil USD, too small for most instituonal investors
Demographics Almost no vacancy in downtown core, given strong demand for residential space
High Target IRR 18%-20% net targeted over 5 years
No Developments only existing cash flow generating real estate
Value Add Replaced property manager; Unit renovation program; reconfiguring space to add additional units; upgrade of common areas.
Quality Operators Have successfully invested in several prior projects with this operator

PRISM MULTI FAMILY APARTMENTS

Location: Las Vegas, Nevada
Sector: Multi Family Residential
Investment Type: Debt | Mezzanine | Equity

Opportunistic Very good submarket with high occupany but below market rents
Smaller Size $56M USD, too large for individuals, too small for most institutions
Demographics High demand for work-force housing; strong net migration into Nevada
High Target IRR 19% IRR targeted over 5 years
No Developments only existing cash flow generating real estate
Value Add Replace property managers; unit renovation program
Quality Operators Have worked with the Operator since 2013.