Wellings Growth Fund II review: a diversified bet on distressed commercial real estate

What the fund is

Wellings Growth Fund II is a closed-end, diversified commercial real estate fund launched in June 2025. It can invest in multifamily, self-storage, manufactured home communities, industrial and open-air shopping centers. Its stated aim is to take advantage of today’s market dislocation by investing in underperforming, distressed or mismanaged properties that have room for value creation.

Wellings does not operate properties itself. It invests alongside outside operators, using what it calls “JV hybrid equity”: joint venture structures that it describes as offering potentially outsized returns relative to risk. The fund prioritizes growth over income, so investors should not expect meaningful distributions early on.

Wellings also runs a sister fund launched the same month, the Wellings Evergreen Income Fund, which is open-ended and focused on income rather than growth.

The sponsor

Wellings Capital was founded in 2015 by Paul Moore and is led by Managing Partner Benjamin Kahle, based in Forest, Virginia. As of June 30, 2026, the firm reports over $225 million of investor equity, over $500 million of assets under management and more than 1,100 investors. Its adviser, Wellings Capital Management, LLC, is registered with the SEC, and a related Wellings fund files public reports with the SEC as a business development company.

Wellings says it has distributed over $80 million to investors since inception, and that as of mid-2025 none of its income funds had missed or reduced a distribution, paused distributions or called additional capital.

SEC filings

Wellings Growth Fund II LP filed a Form D with the SEC. An amended filing signed by Benjamin Kahle on July 2, 2026 reports $8,668,000 sold to 97 investors, with a first sale on June 30, 2025 and an indefinite total offering size. The general partner is Wellings Growth Fund II GP LLC.

The Form D lists a minimum investment of $0, but Wellings’ own materials state a $50,000 minimum for its funds. This is common on Form D filings and not a concern by itself.

Terms and fees

• Minimum investment: $50,000; accredited investors only.
• Target return: 14–18% a year.
• Preferred return: 8% to 9%, according to its Invest Clearly listing, with incentives for early and larger investors.
• Term: projected 8 to 10 years or longer; the listing shows a close date of December 31, 2035.
• Liquidity: none built in. Investors may try to find a third-party buyer, with no guarantee one exists.
• Fees: Wellings says it earns asset management fees, acquisition fees and a share of profits after investors receive their preferred return. The operators Wellings invests with charge their own fees as well. The full fee schedule is not published online.
• Taxes: one K-1 a year; the fund plans to file composite state returns in roughly 40 states to reduce investors’ state filing burden.

Track record

Wellings’ public record is strongest in its income funds, which investors consistently describe as meeting distribution targets. Its growth-oriented track record is thinner. Wellings Growth Fund I focused on self-storage development and value-add, and we found no published results for it. Growth Fund II itself is about 16 months old and has published no performance data.

In a podcast interview, Paul Moore described one operator in an earlier fund turning about $3.5 million of equity into roughly $11.5 million within 10 months after an unexpectedly strong sale offer. That is an example of a single deal, not a fund return.

Claims versus records

Key risks

• Strategy risk: buying distressed and mismanaged assets can produce strong returns, but it is the riskiest part of the real estate market. Turnarounds can take longer and cost more than planned.
• Illiquidity: money is committed for 8 to 10 years or more with no redemption option.
• Layered fees: investors pay Wellings and the underlying operators.
• Operator risk: results depend on outside operators whose track records are shared only under a confidentiality agreement.
• Interest rates: exits depend on financing conditions and sale prices years from now.

What investors say

Strengths and concerns

Strengths

• An established sponsor with a clean regulatory record and SEC-registered adviser.
• Strong, consistent investor feedback.
• Diversification across operators, sectors and regions.
• Candid quarterly market commentary.
• Composite state tax filings to reduce paperwork.

Concerns

• No fund-level results yet, and little public data on Wellings’ earlier growth fund.
• A higher-risk distressed and value-add strategy.
• No liquidity for 8 to 10 years or more.
• Two layers of fees; full fee schedule not public.
• Operator track records available only under a confidentiality agreement.

Who it suits

Questions to ask before investing

1. What are all the fees at the fund and operator level, and the combined annual cost?
2. What were the final results of Wellings Growth Fund I?
3. How many investments does Growth Fund II hold today, with how many operators?
4. How does equalization work for investors who join later?
5. Under what conditions could the fund extend beyond 10 years?

What would change our verdict

• Published results for Wellings Growth Fund I;
• a public fee schedule;
• two to three years of Growth Fund II performance data.

What we couldn’t verify

• The fund’s current holdings and operators.
• The complete fee schedule.
• Results of Wellings Growth Fund I.
• Disclosures on the adviser’s SEC registration record.

Verdict history

October 15, 2026 · Initial review · Mixed (6.7)

Sources

• Form D/A, Wellings Growth Fund II (July 2026)
• Form D, Wellings Growth Fund II LP (SEC EDGAR)
• Wellings Capital investments
• Wellings Capital investor FAQ
• Wellings Capital homepage
• Investing in Mid-2025 (Wellings blog)
• Q1 2025 Market Commentary (Wellings blog)
• Wellings Growth Fund II listing (Invest Clearly)
• Wellings Capital investor reviews (Invest Clearly)
• Wellings Capital sponsor profile (IRA Club)
• Anyone have experience with Wellings Capital? (BiggerPockets)
• Interview with Paul Moore (Passive Mobile Home Park Investing podcast)