Black-owned East Chop Capital Distributes Additional $1 Million from Investments in Hot U.S. Vacation Markets
Posted On July 28, 2022
Firm Delivers 197% ROI from its Second and Third Property Sales in Less than a Year
NEW YORK, July 28, 2022–(BUSINESS WIRE)–East Chop Capital announced today that it has distributed an additional $1 million to investors from the sale of two vacation rental homes in its inaugural real estate fund. The Orlando, FL and Martha’s Vineyard, MA property sales deliver a combined 197% ROI to its diverse investor base of 90% BIPOC, 10% White, and 18% women investors. With these asset sales and solid ongoing performance, their fund is on track to deliver 27% annual returns, net of fees.
East Chop Capital Founders Carrington Carter and Calvin Butts, Jr. (Photo: Business Wire)
Globally, the vacation rental market is predicted to grow by more than 17% through 2030, to more than $112 billion. East Chop Capital’s funds are focused on the intersection of real estate, the rebound in travel, and the future of work in which hybrid and remote are the new normal.
“We are proud that we continue to deliver strong returns on behalf of our investment community, especially in this volatile market,” said Carrington M. Carter, General Partner. “With traditional investment opportunities underperforming this year, we are focused on offering new ways to build generational wealth for our investors.
In the U.S., Black families on average accumulate eight times less wealth than the average white family, according to the U.S. Federal Reserve. Part of East Chop Capital’s mission is to reverse this trend by building wealth for its diverse investor base, and by improving access to capital for minority entrepreneurs and business owners. With a different approach to private equity, East Chop Capital hosts investor retreats, invites its investment community to participate in various PE and VC opportunities, and helps individuals analyze their own deals and businesses.
“As the workforce becomes more mobile, due to rising hybrid and work-from-home options, we’re seeing a major impact on the vacation rental market,” said Calvin L. Butts, Jr., General Partner. “Families are looking for amazing rental homes for extended periods of time. We have a well-positioned portfolio of homes in destination cities across the country, so we’re uniquely situated to serve this growing market.”
East Chop Capital’s luxury vacation rental homes are located in destinations such as Martha’s Vineyard, Hilton Head, Orlando, Gatlinburg, Virginia Beach, Broken Bow (Oklahoma), Banner Elk (North Carolina), and Port Aransas (Texas). To learn more about East Chop Capital and to stay connected, visit www.eastchopcapital.com and follow on LinkedIn and Instagram.
About East Chop Capital
East Chop Capital is a private equity firm founded in 2018 by General Partners Calvin L. Butts, Jr. and Carrington M. Carter, born from the idea and necessity of working together—pooling the resources of many, to accomplish much more than individuals can on their own. Lack of access to capital is a top hurdle for businesses and entrepreneurs, especially minority-owned businesses. East Chop Capital is working to eliminate that disparity and close the wealth gap. For investors, their Commitment is to provide the best combined financial, educational, and social returns.
Forward Looking Statements
Certain information set forth in this press release contains “forward-looking information” under applicable securities laws. Except for statements of historical fact, the information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of East Chop Capital; (ii) the expected development of our business; (iii) execution of our vision and growth strategy; (iv) completion of our projects that are currently underway, in development or otherwise under consideration; and (v) future liquidity, working capital, and capital requirements. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. East Chop Capital undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.