The Constitution Real Estate Credit Fund gives you two options: take quarterly cash distributions or let your returns stay invested. You can request redemption from the fund after the initial 18-month lockup period, with 30 days notice required for any withdrawal or distribution request.
There is an important mechanic worth understanding before you decide. When the fund distributes cash to you, that money leaves your capital account. Your ownership percentage, called your Allocation Percentage, is calculated by dividing your balance by the total capital in the fund. If other members are reinvesting while you are taking distributions, their balances grow relative to yours, which means your slice of the fund's future profits and NAV growth gradually shrinks. Because of this, most investors choose to leave their capital in the fund and let it compound rather than take distributions.
The fund does not process distributions under $5,000, so your account balance needs to reach that threshold before a distribution can be paid out. Once you qualify, you can reach out to us at any time to request one.
Compounding is the default for a reason, but the flexibility to take income exists when you need it. If you are weighing which approach makes sense for your situation, we are happy to walk through it on a call.
For full details on distribution mechanics, lockup terms, and withdrawal rights please refer to the PPM and Fund Deck.