Faes & Co Income Fund · For offshore investors
US private credit. Built for investors outside the US.
Through our Cayman Islands feeder fund, non-US investors can access the Faes & Co Income Fund's strategy of first-lien loans secured on US residential property — with returns paid net of withholding tax and no US tax filings required.
Access for non-US investors
The same strategy as our US fund — in a structure built for offshore capital. Our Cayman Islands feeder fund gives investors outside the United States exposure to first-lien loans secured on predominantly residential US property, with returns paid net of withholding tax and no US tax filings required.
US private credit is one of the most sought-after allocations for international investors, but investing directly into a US fund can bring US withholding tax, US tax returns and paperwork that most offshore investors would rather avoid. The conventional answer is a feeder fund domiciled in a neutral jurisdiction — and that is what we have built.
The Faes & Co Income Fund's Cayman Islands feeder invests into the US fund, which holds a diversified portfolio of short-term, first-lien loans to professional property investors across the United States, originated by our own lending platform, F2 Finance. You subscribe in US dollars, receive quarterly distributions, and leave the US administration to us.
9.5%
Target return per annum †
Quarterly
Distributions paid, or reinvested
90 days
Liquidity, after initial 12-month lock-in
How the feeder works
A Cayman Islands feeder into our US fund.
01
You subscribe to the feeder
Non-US investors subscribe for shares in the Cayman Islands feeder fund in US dollars, by wire from your own bank. No US bank account or US tax identification number is needed.
02
The feeder invests in the US fund
The feeder invests its capital into the Faes & Co Income Fund in the United States, alongside our US investors, on the same terms and in the same portfolio.
03
The fund holds first-lien loans
Short-term loans to professional property investors, secured by a first mortgage on predominantly residential real estate, originated and serviced by our group lender, F2 Finance. Average loan size is under $1 million.
04
Returns flow back to you
Interest earned by the fund is paid up to the feeder and distributed to you quarterly, net of withholding tax, with no US tax filings required on your part.
Why offshore investors choose the feeder
US exposure, without the US administration.
1
Returns net of withholding tax
The feeder is structured so that the return you receive is net of US withholding tax. What the feeder pays out is what you keep, subject only to tax in your own country of residence.
2
No US tax filings
Investing through the feeder does not require you to file a US tax return, obtain a US taxpayer number or deal with US tax forms such as the K-1. The feeder's own reporting is handled by the fund administrator.
3
A familiar, institutional structure
A Cayman Islands feeder is the standard route by which international investors access US private funds. The structure is administered by Suntera Fund Services and the fund is audited by Cherry Bekaert.
$5bn+
Funds under management, businesses we've founded and helped build *
200+
People employed in these businesses *
18 years
Managing funds for investors *
* These numbers relate to businesses founded by members of the Faes & Co team, and not solely to the track record of Faes & Co nor the Faes & Co Income Fund. See the full portfolio snapshot, documents and risk management on the Invest page →
Common questions from offshore investors
The things we get asked most.
Who can invest through the feeder?
The feeder is designed for investors who are not US persons — individuals, family offices, trusts, companies and institutions — who meet the eligibility requirements set out in the feeder's offering documents. We verify eligibility as part of onboarding.
What currency do I invest in, and do I need a US bank account?
Subscriptions and distributions are in US dollars. You do not need a US bank account: you wire funds from your existing bank, and distributions are paid to the account you nominate.
What is the difference between the feeder and the US fund?
None in terms of the investment. The feeder invests into the US fund and shares the same portfolio, the same target return and the same quarterly distribution cycle. The feeder simply sits between you and the US fund so that the US tax and filing burden stays with the structure, not with you.
Will I have any US tax obligations?
The structure is designed so that you do not have to file a US tax return and distributions reach you net of withholding tax. You remain responsible for tax in your own country of residence, and we recommend you take advice there before investing.
How liquid is the investment?
After an initial 12-month lock-in, redemptions are available on 90 days' notice, subject to the terms of the offering documents. The underlying loans are short-term, which is what makes this possible, but the fund is not a bank account and liquidity is not guaranteed.
What are the risks?
The main ones are borrower default and a fall in US property values, together with currency risk if your home currency is not the US dollar. We mitigate credit risk with first-lien security, conservative loan-to-value ratios, diversification across borrowers and states, and an investor protection reserve — but capital is at risk and distributions are not guaranteed.
Next step
Talk to our offshore investor relations team.
Michael Tschirley leads our offshore investor relations from London and works with international investors, family offices and advisers across time zones. Book a short call to walk through the feeder, or request the offering documents and factsheet.
† The Fund pays a target return of 9.5% for investments over $250,000; for investments less than this, the Fund pays a target return of 8.5%. Returns are a target distribution rate, are not guaranteed, and are paid at the discretion of the Fund. Capital is at risk. Past distributions are not a guarantee of future distributions. Redemptions are subject to the initial 12-month lock-in, notice requirements and the terms of the offering documents. Statements on this page about withholding tax and US tax filings describe the intended operation of the feeder structure and are general in nature; they are not tax advice, do not address tax in your country of residence, and may be affected by your individual circumstances and changes in law. Prospective investors should take independent tax and legal advice. Interests in the feeder are offered only to eligible non-US investors by way of the feeder's offering documents, which alone govern the terms of any investment.
Investor relations
Contact our investor relations team
Questions about the Cayman feeder, subscribing from outside the United States or the onboarding process? Michael leads our offshore investor relations from London, and Analisa supports investors from Los Angeles.
Michael Tschirley
London. Offshore Investor Relations & Distribution
Analisa Gagliardi
Los Angeles. US Investor Relations & Distribution