Crystal View Capital Over Subscribes Amidst Recession Concerns

LAS VEGAS, July 21, 2022 /PRNewswire/ — Crystal View Capital Fund III released its recent quarterly report, announcing to investors that it is has successfully raised its additional offering of $30 million, launched earlier this year, and is increasing the offering by $15 million to accommodate investors who are looking to make additional contributions before the offering closes. The Fund is now targeting a total equity raise of $140 million.

The Fund’s managing partner, Matthew Ricciardella said, "We are working diligently to continue to understand and mitigate risks in our underwriting and operations while staying disciplined to our conservative investing process given the heightened concerns around economic growth, inflation, and dislocation in capital markets. Vertical integration, and the ability to control our own destiny in terms of operations, asset management, marketing, and sourcing opportunities off-market under one roof is essential now more than ever before." 

The strategy of the Firm, acquiring off-market value add self-storage and manufactured housing community assets across the United States, is one which investors have been seeking out due to its historical outperformance during recessionary times. "It’s our goal to not rely on the historical performance of the assets as a means to deliver returns; recession or no recession, our in-house management understands the asset classes intimately and will continue to execute on our strategy," he said when asked about if he predicts if these two property types will be more insulated than others. "We are at a pivotal time in both of our core segments where every operator’s strengths and weaknesses will be brought to light. As Warren Buffett has always aptly put it – when the tide goes out, we will find out who has been swimming naked." Our meritocratic culture will allow us to continue to improve our own weaknesses, while our liquidity will allow us to provide capital to an ever increasing illiquid market which we believe will allow us to buy at even more attractive valuations." 

Despite the backdrop of market volatility, the Fund has been able to deploy over $115 million in equity since its inception in late 2020, decreasing its timeline of deployment from an average 132 days in 2020 to an average 40 days thus far in 2022 for contributions received. In addition, the Fund has distributed over $6.6 million in preferred return payments since the Fund’s inception with modest leverage of approximately 34% as of July 2022. "Delivering outsized returns to our investors while mitigating risk has always been the cornerstone of our investment philosophy," says Matthew, in reference to the Firm’s ability to service its preferred return payment so early in the Fund’s lifecycle. Currently the Fund has approximately $205 million in assets under management comprised of over 11,800 storage units and 1000 manufactured housing units and $20 million in assets under contract.

Allie Hunsaker

SOURCE Crystal View Capital