How QFIF II Compares to Other Fixed-Income and Private Market Funds

When it comes to income-focused investing, accredited investors today have more options than ever before. From traditional fixed-income vehicles like CDs and bonds to private credit funds and real estate debt strategies, the choices can feel overwhelming.

The path to reliable income has more routes than ever. CDs, bonds, private credit, and private equity are all viable options but not all will lead to the same destination of stability, yield, and security.

At Quattro Capital, we designed the Quattro Fixed Income Fund II (QFIF II) to be a clear route forward,  bridging the gap between safety, reliability, and attractive yield. Let’s take a closer look at how it stacks up.

Traditional Fixed-Income Options

1. Certificates of Deposit (CDs)
   Pros: FDIC-insured, easy to understand, low risk.
   Cons: Often trail inflation, eroding purchasing power over time.
   
   CDs are like a safe deposit box: your money is protected, but it just sits there. By the time you unlock it, inflation may have quietly diminished its value.
2. Bonds
   Pros: Wide range of options (government, corporate, municipal), steady coupon payments, historically stable.
   Cons: Sensitive to interest rate shifts, may lag inflation, and corporate defaults remain a risk in uncertain markets.
   
   Bonds are a bit like seesaws — when interest rates rise, bond values fall. That movement can catch investors off guard if they need to sell before maturity.
   
   
3. How QFIF II Compares
   QFIF II typically targets 8–12% annual returns, secured by two time-tested forms of collateral: real estate and gold.
   
   - Real estate provides stability through income-producing properties with intrinsic value.
   - Gold serves as a universal store of wealth and hedge against economic uncertainty.
   
   Unlike CDs and bonds that rely on government or corporate promises, QFIF II is anchored in tangible assets. Your returns aren’t just paper commitments, they’re grounded in real value.
   
   Key Point: QFIF II aims to deliver higher yields while maintaining strong asset-backed security through real estate and gold.
   

Private Market Alternatives

Private Credit Funds

Pros: Higher yields, growing in popularity as banks tighten lending.

Cons: Riskier borrowers, limited transparency, and high fees.

Private credit is like lending to a neighbor’s business — it might pay off well, but without clear books, you’re relying on trust.

Private Equity Funds

Pros: Potential for large returns, professional management, access to exclusive deals.

Cons: Illiquid, long lock-ups, and typically growth-focused (no steady income).

Private equity is like planting an orchard — it may yield a strong harvest, but only after years of waiting.

How QFIF II Compares

QFIF II functions more like owning a well-managed rental property than buying a speculative lottery ticket. It produces consistent, contractually obligated interest, secured by real assets. Investors can choose quarterly simple interest for income or compounding for long-term growth.

And unlike many private funds, QFIF II charges no management fees — every dollar you invest is put to work.

Key Point: QFIF II provides predictable income with tangible collateral and zero management fees.

Where QFIF II Fits in a Portfolio

For many accredited investors, QFIF II fits in the “income and stability” sleeve. It complements equities and private equity by providing steady, asset-backed cash flow. Investors seeking to smooth volatility and generate predictable income without chasing speculation may find QFIF II an ideal fit.

Key Point: QFIF II balances portfolio volatility by offering stable, real-asset-based returns.

Liquidity, Term, and Access to Capital

1. CDs: Fixed terms; early withdrawals penalized.
2. Bonds: Tradable, but subject to rate-driven price swings.
3. Private Credit & Equity: Multi-year lock-ups.
4. QFIF II: Defined commitment period; capital deployed into real estate- and gold-backed positions.

Liquidity is like renting versus owning. Renting (CDs) allows quick exits, but owning (QFIF II) provides lasting value and control.

Key Point: QFIF II prioritizes consistent returns over daily liquidity, offering investors a structured path to steady income.

Fee Structure and Net Yield

Many private funds reduce investor returns through stacked management and performance fees. QFIF II eliminates this “fee drag” by having no management fees, allowing the 8–12% target yield to flow directly to investors.

Key Point: QFIF II maximizes investor yield by removing management and performance fees.

Collateral, LTV, and Downside Protection

QFIF II is secured by real estate and gold, two historically resilient asset classes.

1. Real estate positions are backed by first or second liens and conservative loan-to-value ratios (LTVs).
2. Gold adds a hedge against inflation and market volatility.
3. Active monitoring ensures performance and coverage ratios remain sound.
   
   Key Point: QFIF II’s dual collateral strategy reinforces downside protection through real assets and conservative lending practices.
   
   

How QFIF II Generates Returns

Investor capital is deployed into income-producing positions such as real estate–backed loans, multifamily project notes, and gold-backed investments. These produce contractual interest payments, distributed quarterly or compounded.

Key Point: Every dollar in QFIF II works toward consistent, collateralized income generation.

What QFIF II Is Not

QFIF II is not a savings account or FDIC insured. It’s also not a stock market substitute chasing double-digit growth. Instead, it’s an income-first strategy prioritizing security, consistency, and clarity.

Side-by-Side Snapshot

Who Chooses QFIF II

1. Income Planners: Seeking predictable cash flow for retirement or expenses.
2. Diversifiers: Balancing volatile equities with stable yield.
3. Busy Professionals: Preferring passive income without management burden.
4. Legacy Builders: Focusing on stable, long-term wealth creation for families.
   
   Key Point: QFIF II attracts investors who value income stability, transparency, and real asset security.
   
   

Risks and How We Manage Them

Market Risk

Real estate cycles and interest rate shifts can affect values. QFIF II mitigates this via conservative LTVs, income-producing assets, and proven sponsors.

Liquidity Risk

Capital is committed for a defined term. This structure supports steady income and avoids forced sales.

Concentration Risk

Diversified across multiple real estate loans and gold positions, providing balance and resilience.

Manager Risk

The Quattro team invests alongside investors and provides transparent reporting, aligning interests directly.

Key Point: QFIF II manages risk through diversification, conservative structuring, and transparent oversight.

Due Diligence Checklist

When evaluating any income fund, consider:

1. What secures the investment, and at what LTV?
2. How are returns generated and paid?
3. What is the full fee structure and your net yield?
4. How often is collateral monitored?
5. What are the liquidity and reporting terms?
   
   We are happy to walk through each of these points for QFIF II.

The Bottom Line

Every investor’s goals differ:

- For guaranteed principal and daily liquidity, CDs win
- For long-term growth, private equity may fit.
- For reliable income, real asset security, and a clear 8–12% target range, QFIF II fills a distinct space.

At Quattro, it’s not about avoiding risk, it’s about understanding it and structuring it in your favor.

That’s the Quattro way.

Key Takeaways

1. QFIF II targets 8–12% annual returns with real estate and gold collateral.
2. Offers no management fees, maximizing investor yield.
3. Designed for income-focused investors seeking reliability and asset security.
4. Provides quarterly distributions or compounding growth options.
5. Combines transparency, diversification, and conservative lending for downside protection.