What is the Capital Foundation Fund?
The PPR Capital Foundation Fund gives accredited investors exposure to two residential strategies in one position: first-position residential mortgage debt acquired at a discount, and newly built build-to-rent communities. Both rest on the same thesis of housing people. In 2025, 1.41 million American households formed while builders started 1.36 million homes, and that shortfall has compounded for more than a decade. Demand that outruns supply is what supports the value of the home behind a discounted mortgage, and what fills a newly built rental community.
We source opportunities directly or alongside experienced joint venture partners, underwrite them using proprietary economic analysis, and actively manage each asset from acquisition through exit, with the fund taking exposure to the result. Investors choose how the preferred return reaches them: paid monthly, or compounded and paid at the end of the three-year term.
Household formation and housing starts: Realtor.com, 2026 Housing Supply Gap Report, March 2026. Market conditions described are national in scope and are not a projection of fund performance.
Have an IRA you are looking to deploy?
The Capital Foundation Fund is optimized for IRA investments.
- One K-1. A single position means one K-1 for the account, not a stack of them.
- Nothing to manage. No tenants, no repair invoices, no property decisions for your custodian to process.
- Qualified plans accepted. $50,000 minimum, three-year term.
Not investment or tax advice. Speak with your tax advisor or retirement plan specialist before making an investment decision.
Two Investment Options
11% Preferred
(Compounding)
$50K Minimum Investment
Qualified Plans Accepted
36 Months
9% Preferred
(Monthly)
$50K Minimum Investment
Qualified Plans Accepted
36 Months
Current Portfolio
The Capital Foundation Fund rests on a single principle: diversified exposure leads to stronger, more resilient returns over the long term. That’s why the fund provides exposure to two complementary asset classes: Non-Performing Loans (NPLs) and Build-to-Rent (BTR) communities.
The two strategies work on different timelines: NPLs are acquired at deep discounts, with value delivered through resolution or sale, while BTR communities answer the long-term demographic trends reshaping how Americans rent. Together they give the fund diversification across risk profiles, market cycles, and return timelines, and they address a critical need for housing in the United States.
That case is set out in full in The Shelter Effect, PPR’s data-driven analysis of residential real estate as a long-term inflation hedge: the demand fundamentals, the supply constraints and how the asset class has performed through inflationary periods.
Strategy One
Non-Performing Loans (NPLs)
When a borrower takes out a mortgage to purchase a home, they make a promise to the lender to repay the loan according to certain terms. However, due to individual circumstances, sometimes these loans go into default and banks and mortgage originators will seek to remove these defaulted assets from their balance sheets.
Our NPL asset managers buy these non-performing loans at a discount and work with borrowers to get them back on track before eventually selling the now re-performing loans (RPLs), supporting a main driver of our purpose-focused culture of housing people. In the event the loan doesn’t reach reperforming status, there is an opportunity to exit the investment via sale of the property.
Since 2007, PPR has acquired $2B+ in distressed residential debt and resolved 11,000+ individual loans.
Firm-wide figures across PPR-managed funds and partnerships since 2007. Not the results of this fund, and not a projection of its results.
Life of a Non-Performing Loan
Hover any step for detail. On a phone, tap it.
How a non-performing loan resolves. Schematic of the paths a loan can take, not a distribution of outcomes; every loan is underwritten and worked individually.
Click any phase for detail. On a phone, tap it.
Illustrative value index (100 = land acquisition). Shown for education; not actual or projected performance, and not investment advice.
The BTR communities the fund provides exposure to deliver the lifestyle benefits of single-family living (private yards, dedicated parking, modern finishes) with the convenience of professional management and community amenities typically found in luxury apartments. The result: lower tenant turnover, premium rents, and operational efficiencies more typical of professionally managed apartment communities.
Strategy Two
Build-to-Rent
As homeownership becomes increasingly unattainable for working families (driven by high prices, tight inventory, and challenging financing), demand for quality single-family rental housing has never been stronger.
Build-to-Rent communities answer this call by creating new housing supply specifically designed for long-term renters. Unlike buy-to-rent models that compete with individual homebuyers for existing homes, BTR developments add units to the market that wouldn’t otherwise exist, expanding housing options rather than restricting them.
Why Build-to-Rent
93% occupancy. Established build-to-rent communities average 93% occupancy nationally.
Renters stay longer. The share of single-family renters still in the same home after five years rose from 26% to 37% between 2010 and 2024, while tenure in buildings of fifty units or more fell from 32% to 28%.
Occupancy: John Burns Research and Consulting, Spring 2025 Build-to-Rent Trends. Tenure: U.S. Census data. Industry figures for the build-to-rent sector, not results of this fund.
Active Management. Constant Vigilance.
At PPR, the investment doesn’t end when capital is deployed, that’s when our work truly begins.
Our asset management and surveillance infrastructure ensures every investment receives ongoing oversight:
Portfolio Monitoring
Our fully implemented asset management and reporting platform provides real-time visibility across our entire portfolio, flagging anomalies and performance variances before they become problems.
Sponsor Engagement
Regular calls with joint venture partners and operators to track progress, address challenges, and support marketing efforts when needed.
On-the-Ground Intelligence
Systematic site visits to assess property conditions, market dynamics, and operational execution firsthand.
Economic Oversight
Our CIO continuously evaluates macroeconomic metrics and emerging trends, stress-testing portfolio positioning against changing market conditions. This proactive approach allows us to identify opportunities early, mitigate risks quickly, and ensure every asset is performing to its fullest potential, protecting and enhancing returns throughout the investment lifecycle.
Capital Foundation Fund
Two Strategies.
One Fund.
Thank you for your interest in the Capital Foundation Fund.
The first step to getting started is to complete the form to confirm that you’re an accredited investor.