QC Capital Fund II

Risk Mitigation: Funds are known to hold higher sharpe ratios. The sharpe ratio is a measurement of risk of an investment. Because a fund can hold multiple assets across multiple markets, it is considered less of a risk. If any one market or asset had an issue, there are other assets within the fund generating stabilized returns until the distressed asset can stabilize. We believe this will become more important as the economy begins to struggle and vise versa; more assets create additional opportunities to hold a property that has a significant upside at sale that will boost the overall returns for investors.

Flexibility: In a fund, assets are acquired over time, which allows investors to "asset cost average". Similar to the "dollar cost averaging" strategy equity investors take to acquire shares over time. This allows the fund to potentially acquire assets throughout different economic cycles in order to capitalize on different market conditions. In addition, because QC Fund II is structured as a 10 year fund, assets have a longer time horizon that allows for multiple exit strategies for the highest price. If capitalization rates haven't compressed from monetary easing, a refinance could be a strategic move that allows a partial or total liquidity event of investors' original investment while protecting the funds target returns on exit.

Economies of scale: As inflation continues to dwindle affordability and expectations of rents increasing as we have seen since the pandemic, operators will have to create their own ways to grow bottom lines. With multiple assets in the fund, we will be able to leverage reduced operating costs as we pool resources from insurance, property management and other value-add operational aspects.

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