RV Park Opportunity Fund

Overview

Blue Capital presents the RV Park Opportunity Fund, focusing on transforming RV parks into thriving communities, creating lasting value for investors while delivering exceptional outdoor experiences. The fund aims for high returns, resilient growth, scalable consolidation, and tax advantages. Our strategy involves two distinct roles with a unified approach: Blue Metric Group (BMG) drives acquisition and operational excellence, focusing on acquisitions, operations, value-add, and project-by-project fundraising. Blue Capital (BCH) powers fundraising and institutional reach, providing aligned strategy, shared fund management, investor value creation, and leveraging its $2B+ transacted experience, fundraising focus, diversification, and institutional connections. Our acquisition strategy involves identifying strategic park assets directly and through broker networks, performing comprehensive financial due diligence to acquire the best parks, and then managing and optimizing these mom-and-pop owned parks to upgrade them to professionally managed assets, maximizing cash return and expanding where possible. We aim to aggregate $500M+ of parks across North America to implement our strategy and benefit from economies of scale, ultimately pursuing a strategic exit of the total portfolio through public or private markets. We believe RV parks, particularly those with long-term components, are recession-resistant, high ROI investments. These properties tend to produce excess cash flow and have ample room for profit growth and consolidation. The sector is ripe for consolidation, with 80-90% of assets being mom-and-pop owned, often facing financial stress, and benefiting from modern, best-practice upgrades. The camping market in the United States is experiencing remarkable growth, with participation projected to increase from 80.88 million users in 2024 to 83.71 million by 2029. Market revenue is estimated at $25.81 billion in 2024, reflecting strong demand for outdoor experiences. User penetration is expected to rise from 18.5% in 2024 to 23.1% by 2029, driven largely by millennials seeking budget-friendly adventures. There is a growing appetite for luxury camping, particularly in popular national park destinations, highlighting a shift towards more premium outdoor experiences. Key trends include a 10.9% increase in market share, 20.8% more likely to camp with pets, 21.8% of campers trying an RV or trailer for the first time, and an average of 54 nights camped by RVers. Campers in the United States often have a high annual household income, making them a valuable market segment. They are also forward-thinking, with 22% being innovators or early adopters of new products. Additionally, campers are more likely than the average consumer to recall ads on music portals and streaming services, indicating strong engagement with digital media. Statistics show 25.7 million new campers since 2020, 32% of all new campers camp again, 46% campers work while camping, 18,000 campgrounds in America, 50% of campers use RV/Cabins, and 70% of new campers are either Gen Z or Millennials under the age of 43. Our in-house asset manager, Streamside, unifies our portfolio and drives industry-wide transformation, offering benefits such as control over assets, operational efficiencies, significant cost savings, faster renovations, and stronger communities. This investment is suitable for accredited investors seeking passive income, long-term wealth building with a focus on tax optimization, large year-1 tax write-offs, exposure to the RV sector, and an investment managed by an experienced team.