East Chop Capital announced today that it has distributed an additional $1 million to investors from the sale of two vacation rental homes in its inaugural real estate fund. The Orlando, FL and Martha’s Vineyard, MA property sales deliver a combined 197% ROI to its diverse investor base of 90% BIPOC, 10% White, and 18% women investors. With these asset sales and solid ongoing performance, their fund is on track to deliver 27% annual returns, net of fees.
Globally, the vacation rental market is predicted to grow by more than 17% through 2030, to more than $112 billion. East Chop Capital’s funds are focused on the intersection of real estate, the rebound in travel, and the future of work in which hybrid and remote are the new normal.
“We are proud that we continue to deliver strong returns on behalf of our investment community, especially in this volatile market,” said Carrington M. Carter, General Partner. “With traditional investment opportunities underperforming this year, we are focused on offering new ways to build generational wealth for our investors.
In the U.S., Black families on average accumulate eight times less wealth than the average white family, according to the U.S. Federal Reserve. Part of East Chop Capital’s mission is to reverse this trend by building wealth for its diverse investor base, and by improving access to capital for minority entrepreneurs and business owners. With a different approach to private equity, East Chop Capital hosts investor retreats, invites its investment community to participate in various PE and VC opportunities, and helps individuals analyze their own deals and businesses.
“As the workforce becomes more mobile, due to rising hybrid and work-from-home options, we’re seeing a major impact on the vacation rental market,” said Calvin L. Butts, Jr., General Partner. “Families are looking for amazing rental homes for extended periods of time. We have a well-positioned portfolio of homes in destination cities across the country, so we’re uniquely situated to serve this growing market.”
East Chop Capital’s luxury vacation rental homes are located in destinations such as Martha’s Vineyard, Hilton Head, Orlando, Gatlinburg, Virginia Beach, Broken Bow (Oklahoma), Banner Elk (North Carolina), and Port Aransas (Texas).News Source: Businesswire