We are thrilled to announce some exciting updates to the Horizon Fund to further enhance your investment experience and amplify returns. After thorough analysis and careful consideration of feedback from our valued investors, we are making significant improvements aimed at increasing accessibility and maximizing the potential of your investments.
First and foremost, we are excited to announce that due to strong demand and growing investor confidence, the Horizon Fund has resized to $30 million, up from $20 million. This expansion allows us to spread fixed costs across a wider equity base, resulting in improved efficiency and amplified returns for our investors. Additionally, the increased size of the fund enabled us to negotiate reducing our borrowing costs from our senior debt providers by 0.5%, further enhancing returns above 10%+ of the past two quarters and strengthening the overall performance of the fund.
Furthermore, we are delighted to inform the Horizon Fund's minimum investment has been reduced to $15,000. This decision stems from a detailed examination of our data, which revealed that a significant portion of our investments—over 80%—fall below the previous minimum threshold. By lowering the entry barrier to $15,000, we aim to make the fund more accessible to a wider range of investors, enabling more individuals to benefit from our diversified portfolio and attractive returns.
But that's not all. In addition to reducing the minimum initial investment, we are introducing a new enhancement that allows already admitted investors to continuously add to their holdings with a reduced minimum of just $5,000. This flexibility enables existing investors to further capitalize on their confidence in the Horizon Fund's performance and potential, while also providing an opportunity for incremental growth over time.
Lastly, we now permit a direct rollover of your maturing Series Note investments into Horizon Fund at these new minimums. Through this enhancement, you can tee up your HRIF investment to immediately begin the day after your Series Note matures, keeping your money working for you.
What is the Advantage of HRIF?
Now, let's delve into the numbers to illustrate the compelling advantages of investing in the Horizon Fund and why a higher minimum investment may be the right investment. With a $15,000 investment, you gain access to a diversified portfolio currently consisting of 170 loans. Compare this to investing the same amount in borrower-dependent notes (BDNs), where $15,000 would only get you into three notes (with a minimum investment of $5,000 each). The math speaks for itself—by investing in the Horizon Fund, you not only benefit from diversification but also enjoy exposure to a significantly larger pool of opportunities, thereby mitigating risk and maximizing potential returns. This also keeps your money working for you, without having to redeploy repaid principal; the investment is always earning (back-to-back quarters with 10% returns and plenty of upside), and those returns are also further amplified by potential tax advantages of the fund’s Sub-REIT structure.
As we embark on this new phase of growth and expansion, we want to express our gratitude to our loyal investors who have placed their trust in us. Your continued support and referrals are invaluable as we strive to deliver exceptional results and create long-term value for all stakeholders.
In conclusion, these enhancements underscore our commitment to innovation, accessibility, and excellence. We invite you to seize this opportunity to invest or increase your holdings in the Horizon Fund and join us on our journey towards a brighter financial future.
Thank you for your trust, and we look forward to achieving new heights together.
