At J19, we are not just buying assets, we are building a very intentional portfolio. We are creating a brand around the J19 name that will be identified with best in class alternative investments focused on yield, appreciation and tax savings. Going where others aren’t looking so we can deliver consistent cash flow day one while exceeding high teen IRRs without locking up your funds for extended periods thus providing investor liquidity with transparent reporting, and an owner’s mindset.
This strategy is allowing us to introduce new financial products to the market. We have two new “annuity-like” financial products that have the characteristics investors have wanted for years, but many in the financial services industry have not provided.
Over the last decades, the financial services industry has been on a huge consolidation spree and the big keep getting bigger. Most wealth managers are only putting clients in multi-billion dollar funds which generate large fee income to the general partner and little alpha to the investor and, in our view, misaligns incentives.
What are the characteristics of J19’s new financial products?
Our flagship – High Yield Tax Differed Fund
- Current distributions: 10% day one, class D shares
- Total return: 17-19% net IRR
- Lockout Period: 1-3 years
- Tax Deferred: using depreciation to offset up to all income while invested in the fund, zero to limited tax liability
- Diversification: Notes, Multi Family, Industrial, Condo Conversions, and Minerals
- Leverage: zero to 30% fund leverage, depending on class level
- Control: all direct ownership and limited JV boots on ground operators
- Fees: 2% on capital, and a 20% performance fee
At J19, we believe that real alpha is in small to middle market assets that are $30 million and below. However, these assets have been very hard for investors to access, especially institutional investors. We bring 60 years of combined track record, with over $10B of transactions, which gives us a unique perspective, and gives our investors the comfort they need to invest with us.
The name J19 was born out of the Bible verse Joshua 1:9, when God is leading Israel transitioning leadership from Moses to Joshua. Our lives are always in a transition. And the future is always unknown, and the advice is the same – be strong and courageous, do not fear or be discouraged, the Lord goes with you.
Those words remain true today and provide us peace, power, protection and provision in our pursuit. Our hope at J19 is that as we take calculated investment risk we invest out of safety, and a sense of security with our approach to well constructed portfolios and investor friendly fund structures. We invite you to invest with us, transparent partners and invest with power and protection.
J19 is an institutional fund manager, specializing in the small to middle market real estate investments and real estate adjacent. We are making real estate investing boring again. To behave like a annuity and not a tech stock. Predictable cash flow, known capital calls, no J curve, and provide liquidity to your investments with 1-3 year lockup periods.
It may be boring with 10% monthly distributions all tax deferred while appreciating your total investment to 17-19% net IRRs but it is not simple. We have structured extremely intentional portfolio construction to maximize returns while reducing risk and volatility and navigating 75,000 pages of tax code to your benefit. We have zero to low leverage fund classes for your protection. The fund focuses on longer term holds that fit well within our evergreen fund structure while eliminating all the things investors hate about funds. We are investors first, managing our own money the way you want your money managed. Incentives are aligned.