What Sets Kirkland Capital Group Apart?

Kirkland Capital Group (KCG) is an investment fund manager combining 75+ years of investment management, real estate, and technology experience to Build and Fortify Your Wealth. Our principal preservation focused income fund generates passive high-yield income, delivering over 11% compounded net return for 2022 and 2023. Investors feel happy they capture strong returns, and are doing good, as the Fund’s micro-balance real estate loans are used to rehabilitate middle-income affordable housing and neighborhoods, making a positive social and environmental impact.

But how does KCG distinguish itself from the other income funds in the market? We differentiate ourselves through a combination of strategic practices and structural advantages that cater to the savvy investor. Below, we delve into the key aspects that sets us apart from other funds.

Third-Party Administered and Audited Fund

We established Kirkland Capital Group with a focus on institutional-like practices right from our inception. Like larger institutions that utilize fund administrators and auditors, we have engaged a third-party administrator, Formidium, and an auditor, Spicer Jeffries, to uphold transparency and integrity in all our dealings. Not all funds of our size have implemented these practices.

This external oversight is crucial for investors seeking reassurance that their investments are managed with precision and ethical conduct. By enlisting the services of a third-party auditor and administrator, we demonstrate our dedication to upholding stringent standards of accountability and trustworthiness in every aspect of our business operations.

Additionally, we outlined our methods for ensuring transparent and accurate monthly investor statements in our "How Kirkland Capital Group Ensures Transparent and Accurate Monthly Investor Statements" Article.

“External oversight is crucial for investors seeking reassurance that their investments are managed with precision and ethical conduct.”

Consistent and Stable Returns

In today’s volatile financial landscape, it brings us great pride to have maintained a track record of providing consistent and stable returns to our valued investors. As previously highlighted, over the course of the years 2022 and 2023, our investment portfolio has yielded a compounded net return exceeding 11%. On the other hand, over same period, private credit, tracked by the Cliffwater Direct Lending Index–Senior Only, has returned 9.21%, on average (Source: cliffwaterdirectlendingindex.com). 

Furthermore, we have consistently delivered positive monthly returns for the past four years, all while keeping volatility at bay. This unwavering stability serves as a testament to the efficacy of our investment strategy in weathering challenging market conditions. By prioritizing the preservation of capital and delivering a steady income stream, our fund stands out as an attractive choice for individuals looking to safeguard and grow their wealth. Explore further insights into our dependable and consistent returns by delving into our article titled "The Importance of Consistent and Stable Returns in Fixed Income Investments".

“We have consistently delivered positive monthly returns for the past four years, all while keeping volatility at bay.”

Low Correlation with Traditional Assets

Most investors strive to build a well-rounded and diversified investment portfolio. An essential element of diversification involves incorporating asset classes that do not move in tandem. Over the past four years, we’re proud to say that our fund has demonstrated a negative correlation with traditional investments. This indicates that our fund remains unaffected by many factors that are causing fluctuations in traditional stocks or bonds, for example. To delve deeper into our correlation with public market assets, you can explore our Fund Performance page. By allocating resources to assets that exhibit independent movement from the broader markets, our fund offers a buffer during public market downturns, thereby mitigating overall portfolio risk.

“Our fund remains unaffected by many factors that are causing fluctuations in traditional stocks or bonds.”

Tax Efficiency through Sub-REIT Structure

We have recently completed the creation of a Sub-REIT structure to improve tax efficiency for our investors. This approach helps in treating investment income favorably, leading to potential tax savings for them. The creation of the Sub-REIT structure is an example of our firm's dedication to maximizing investor returns.

REITs under Sec. 199A allow taxpayers a deduction of 20% of qualified business income earned in a qualified trade or business, subject to certain limitations. This deduction increases the after-tax return on investments.

“The creation of the Sub-REIT structure is an example of our firm’s dedication to maximizing investor returns.”

Historical Knowledge and Platform of Sourcing of Loans

At the heart of our achievements lies our deep-rooted historical expertise in the investment management sector, boasting a collective experience of over 75 years. Additionally, we possess a strong infrastructure and technology platform for loan origination, facilitated through a vast network of thousands of loan brokers.

Our proficiency in loan origination, assessment, and administration plays a pivotal role in our overarching strategy, fostering both stability and expansion for our fund. The steady influx of high-quality deals is crucial for our niche market of micro-balance commercial real estate loans, setting us apart from other funds that may struggle to penetrate this specialized sector without that constant deal flow.

“We possess a strong infrastructure and technology platform for loan origination, facilitated through a vast network of thousands of loan brokers.”

Conclusion

We have distinguished ourselves from other funds by leveraging a blend of strategic benefits and operational efficiencies. These encompass our externally monitored and independently audited fund, reliable and steady returns, minimal correlation with traditional assets, tax efficiency, and a strong foundation for loan origination. All these factors make investing in our fund an attractive option for astute investors seeking principal preservation and uncorrelated passive high-yield income to build and fortify their wealth.

If you have any questions about this article or the Kirkland income Fund, please schedule a call with me.