ATLANTA--(BUSINESS WIRE)--Equity Estates Fund III, LLC announced that they successfully welcomed over $8.5 Million in new capital contributions from Residential Club Holdings, Inc. (RCH) members. RCH is made up of members from a few defunct destination clubs and was under the control of Abercrombie & Kent Private Residence Club, also no longer in business. For the past six years, this group of Destination Club Refugees had been cared for by Exclusive Resorts, one of the few surviving clubs, post- recession and is owned by Revolution, Steve Case’s investment fund.
Equity Estates’ CEO and Founder, Philip Mekelburg, shared he and his team are proud to claim over 20% of its equity-based destination club investors, are made up of Destination Club Refugees. He chuckles at the notion of using the term ‘refugees’ for this high net worth group of families. It seems clear Equity Estates has become a port of safety for members of defunct vacation clubs. The roster of companies that attempted to provide quality luxury vacation experiences in multi-million dollar homes, that have shuttered their doors in the past ten years includes: Private Escapes, Ultimate Retreats, Ultimate Escapes, The Lusso Collection, High Country Club, Dream Catchers, Portofino, Belle Havens, Tanner and Haley, Abercrombie & Kent, and Crescent Club. Equity Estates has investors happily enjoying luxury vacation homes from every one of them.
“It is great to hear these refugees say they love the travel experience, but they bet on the wrong pony and Equity Estates is a better model,” shared Mekelburg. “They are choosing Equity Estates because we had the model right and aligned from the beginning, in 2006. That's why we made it through the recession and are still thriving.” Investors get a full annual audit from RSM (formerly McGladrey) to show all commitments are being followed and the third party appraised value of the underlying real estate, owned by each Fund. "Each investor knows what they own with Equity Estates,” Mekelburg admits it is the travel experience that drives interest and the model gives investors comfort to write the check. Many investors share they think it is a “smart and fun model.” If we do our job well, investors will get their initial contribution back and perhaps some surplus appreciation share. At the end of the day, we are just shepherds of their vacation home investment dollars, professionally caring for them for ten years and then hopefully returning more than they invested. We don’t get paid our promote portion until they get back every dollar they initially invested first.
About Equity Estates
Equity Estates is a hedge fund of luxury vacation homes now in its 13th successful year. This vacation home alternative is for accredited investors, offered via private placement. A globetrotter's dream with more than luxury residences spanning more than 25 countries, Equity Estates' mission is to deliver measurable and memorable returns. Equity Estates Fund I sold out in 2012, and Fund II sold out in 2016, and Fund III will sell out within the next 30 days. Equity Estates has collectively raised and effectively deployed over $100 million and delivered over 13,000 outstanding vacation experiences.
