The Mosaic Fund - Stable Income Fund

The Mosaic Fund was named with intention. Like a mosaic, it was built one carefully chosen piece at a time — each selected for its individual strengths, but designed to work together to produce stable income and durable value. Diverse by design, but assembled to create something cohesive, durable, and greater than the sum of its parts. (No two tiles are identical, no random tiles.)

Formed to invest in core-plus and value-add real estate across the United States, the Fund focused on cash-flowing assets with identifiable opportunities for improvement. By pairing disciplined underwriting with all-cash acquisitions and swift execution, the Fund was able to secure attractive entry pricing, generate reliable quarterly income, and capture meaningful appreciation along the way.

OFFERING SUMMARY

• Investment Profile: Core-plus & Value-add Real Estate

• Investment Period: 4.5 years

• Target Return On Investment:

  • Tier 1 Investors (<$100k invested): 32.0%

  • Tier 2 Investors (>=$100k invested): 35.5%

• Actual Return on Investment:

  • Tier 1 Investors (<$100k invested): 37.4%

  • Tier 2 Investors (>=$100k invested): 41.0%

• Debt Free

Investor Benefits

investment strategy & Results

A Conservative Income-Focused Investment Framework

The Mosaic Fund was designed to deliver stable quarterly cash flow with incremental value appreciation, using a conservative, debt-free real estate investment strategy. The Fund focused on acquiring core-plus and value-add properties where downside risk could be mitigated through low-basis, all-cash acquisitions and active ownership—rather than financial leverage or market speculation.

Formed in 2018, the Fund applied BENA Capital’s research-driven framework across multiple market cycles, including periods of heightened economic and operational uncertainty.

Investment Selection: Discipline at Entry

The Mosaic Fund targeted cash-flowing assets with identifiable inefficiencies or value-add opportunities, within the multifamily sector. Each acquisition was evaluated across four core dimensions:

1. Macroeconomic Fundamentals – Employment stability, population trends, housing affordability, and long-term demand drivers.

2. Submarket Dynamics – Neighborhood-level rental demand, competitive supply, and tenant characteristics.

3. Capital Market Conditions – Buyer liquidity, pricing trends, and exit demand across secondary and tertiary markets.

4. Property-Specific Characteristics – Deferred maintenance, operational inefficiencies, and repositioning potential.

All properties were acquired using 100% cash, allowing the Fund to close swiftly, negotiate favorable pricing, and eliminate financing risk.

Value Creation: Active Management with Capital Discipline

The Mosaic Fund emphasized hands-on asset management and incremental value creation rather than heavy redevelopment or leverage-driven returns. Value creation initiatives included:

• Targeted Physical Improvements – Addressing deferred maintenance and enhancing unit quality where economically justified.

• Operational Optimization – Improved property management oversight, expense control, and leasing execution.

• Revenue Enhancement – Increasing occupancy and rents through better alignment with local market conditions.

• Market Monitoring – Continuous assessment of local trends to inform hold-versus-sell decisions.

This approach enabled the Fund to improve operating performance while maintaining stable quarterly distributions.

Capital Strategy: Debt-Free by Design

The Fund’s capital strategy was intentionally conservative, reflecting BENA Capital’s emphasis on capital preservation and predictability. Key elements included:

• No Interest-Bearing Debt – Eliminating refinancing risk, interest rate exposure, and forced-sale scenarios.

• Efficient Capital Deployment – Incremental capital improvements focused on near-term NOI impact.

• Sell Discipline – Assets were sold opportunistically when market conditions supported attractive risk-adjusted exits.

This structure provided resilience during market disruptions and allowed management to prioritize investor outcomes over timing constraints.

Results: Consistent Income and Realized Appreciation

Over a 4.5-year investment period, the Mosaic Fund executed its strategy as intended, delivering both income stability and value appreciation:

• 18 consecutive quarters of investor distributions, totaling over $210,000 in cash flow

• All five portfolio properties increased in value

• Total portfolio appreciation of approximately 60%

Each property was sold at a gain, with individual asset appreciation ranging from approximately 15% to over 90%

Diversification with Intent

The Mosaic Fund diversified across multiple geographies and assets while remaining focused on markets and strategies where BENA Capital holds a demonstrated competitive advantage. Rather than diversifying for its own sake, capital was allocated selectively to opportunities offering favorable risk-adjusted returns.

Why This Matters to Investors

For investors, the Mosaic Fund demonstrates how a disciplined, debt-free approach can deliver reliable income, capital preservation, and meaningful appreciation across market cycles. The Fund’s results were driven by underwriting rigor, conservative capital structures, and active asset management—not leverage or speculative assumptions. Just as importantly, the consistency of distributions and the successful realization of gains across all assets reflect BENA Capital’s fiduciary mindset and execution discipline. This same framework continues to inform how BENA Capital structures, manages, and exits investments today.

DISCLAIMER

This website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Investments involve risk, including loss of principal. Past performance does not guarantee future results.