Equity Estates Launches Seventh Vacation Home Fund

The equity destination club Equity Estates has announced the launch of their Fund VII. This new luxury residence fund plans to acquire twelve multi-million-dollar vacation homes in the most popular destinations worldwide. Investors in the fund can both own and enjoy these luxury vacation homes.

Background

Founded in 2006, Equity Estates has successfully bought multiple vacation homes for each of its funds. Across all these funds it has raised and effectively deployed more than $300 million and delivered over 25,000 vacations to its investor members. As a few examples, Fund I sold out in 2012, Fund II sold out in 2016, Fund III sold out in 2019, Fund V sold out in 2021, and Fund VI just sold out in 2024. Each of the funds has a ten-year plan, during which investors use the homes, before the fund starts to sell its assets and return proceeds to the investors.

This new Fund VII plans to raise $70 million and is an alternative investment offered via private placement to accredited investors - rather like a real estate private equity fund.

Fund VII Overview

A typical Equity Estates residence is in sought-after beach, mountain, leisure, or city destinations. Target destinations for Fund VII include Deer Valley UT, Turks and Caicos, Hawaii, London, Naples FL, Palm Beach FL, Saint Barthélemy, Jackson WY, Wine Country CA, Mexico, and more to complement the portfolios of the other Equity Estates funds and partner organizations. Each Fund VII residence will cost between $3.5 and $6.5 million. Liquidation of Fund VII is targeted for 2036, and the distribution on sale will provide most of the appreciation to investors – after 100% of investors’ initial capital is returned – assuming the properties appreciate as expected.

Philip Mekelburg, CEO and Founder of Equity Estates, stated, “Since our inception nearly 20 years ago, Equity Estates has raised and deployed over $300 million. We are thankful to the investors who continue to trust us to manage these valuable assets while making cherished memories to last a lifetime. Our real estate team is already focused on key destinations, and we plan to announce our first Fund VII property acquisition in the coming months.”

For each trip, Equity Estates provides extensive pre-trip planning, personal concierge support, a dedicated destination manager, and daily housekeeping. This means, for instance, when an investor arrives at the home there’s a pre-arranged itinerary on the counter and the requested groceries are in the fridge. In addition, requested reservations and activities will have been reserved, and time can be focused on relaxing and making memories.

Investment Levels

There are five levels of investment in Fund VII, which provide from 15 to 45 nights of travel per year. The lowest investment is $380,000 at the “Executive” level, which offers 15 nights per year and has an annual shared cost of $21,950. There is also a 1% annual "Asset Management Fee".