Constitution Real Estate Credit Fund Jan 2025 YTD Update
Constitution Real Estate Credit Fund Jan 2025 YTD up 10.27% Net. The fund focuses on generating absolute returns on low LTV non-performing and performing loans.
Dear Partners,
The fund earned a net return of 10.27% in January, While monthly performance can vary, it was a strong start to the year and reflective of the types of situations we aim to target.
As we move through 2025, we wanted to share a quick update on portfolio activity and positioning.
On the acquisition side, we’re seeing a steady flow of nonperforming loans, supported by our growing network of banking and private lender relationships. These counterparties continue to give us access to deals that align well with our strategy.
The data scraping and AI-powered document analysis tools we’ve developed are now making a real impact. What once required manually reviewing dozens—or even hundreds—of legal or loan documents can now be filtered, scraped, and organized with far greater speed and accuracy. These tools help us underwrite faster, act quicker, and stay focused on the highest-quality opportunities.
As always, thank you for your continued trust and support. We’ll keep you updated as the year progresses.
February and March updates will be out soon as well.
The fund generated a net return of 10.27% YTD through January 31, 2025.
The fund generated a net return of *57.60% for FY 2024. (revised from previous estimate of 56.96%).
Net P/L Performance by Month Breakdown
Jan 2024 -1.21%
Feb 2024 2.85%
Mar 2024 6.59%
Apr 2024 3.38%
May 2024 5.84%
Jun 2024 5.78%
Jul 2024 4.68%
Aug 2024 3.83%
Sep 2024 0.06%
Oct 2024 2.69%
Nov 2024 4.11%
Dec 2024 8.02%
YTD 2024 57.60%
Jan 2025 10.27%
YTD 2025 10.27%
Portfolio Insights and Highlights
The fund holds 12 investments as of Jan, 31 2025.
We made 1 new investment in January. The purchase of a NPL in Avon CT. Excited to move this one through our process and possibly have control of the property by the end of the year.
We are nearing completion of the fund’s 2024 audit and expect to distribute K-1s shortly after.
Several existing positions are progressing through resolution and remain on track for monetization in Q2 and Q3.
The Orange CT shopping center continues to perform well and is now generating consistent income for the fund.
Looking Ahead
We’re entering the year with strong momentum and a healthy pipeline. We expect a number of our existing positions to resolve over the next couple of quarters, providing additional liquidity and reinvestment potential.
Our tools and sourcing channels are giving us better visibility than ever into distressed credit across the region, and this will translate into an even stronger flow of low LTV, high return notes.
Our focus remains unchanged: sourcing deeply discounted debt (relative to collateral value), protecting downside through conservative underwriting, and creating value through active resolution.
The environment continues to favor NPL investors with the tools, relationships, and local knowledge to move quickly—and we believe we’re well-positioned to capitalize. We appreciate your continued partnership and look forward to sharing more soon.
