Ver Versus Capit apital al Mult ulti-Manager anager Real Estate - - PowerPoint PPT Presentation

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Some Risks of the Fund

AN INVESTMENT IN THE FUND IS SUBJECT TO A HIGH DEGREE OF RISK. RISKS OF INVESTING IN THE FUND, INCLUDE, BUT ARE NOT LIMITED TO, THOSE OUTLINED BELOW. YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION ARE CONTAINED IN THE FUND’S PROSPECTUS AND SUMMARY PROSPECTUS AND CAN BE OBTAINED BY CONTACTING THE SUB-DISTRIBUTOR OR FROM THE VERSUS CAPITAL WEBSITE (www.versuscapital.com). PLEASE READ THEM CAREFULLY BEFORE YOU INVEST OR SEND MONEY. THE FUND IS A NEWLY FORMED ENTITY WITH NO SIGNIFICANT OPERATING HISTORY UPON WHICH PROSPECTIVE INVESTORS MAY EVALUATE THE FUND’S POTENTIAL PERFORMANCE. THE FUND’S INVESTMENTS MAY BE NEGATIVELY AFFECTED BY THE BROAD INVESTMENT ENVIRONMENT IN THE REAL ESTATE MARKET, THE DEBT MARKET AND/OR THE EQUITY SECURITIES MARKET. REAL ESTATE IS SUBJECT TO SPECIAL RISKS, AMONG WHICH ARE TENANT DEFAULT, ENVIRONMENTAL PROBLEMS, AND ADVERSE CHANGES IN LOCAL ECONOMIC CONDITIONS. THE FUND IS DEEMED “NON-DIVERSIFIED” UNDER THE INVESTMENT COMPANY ACT OF 1940 SINCE CHANGES IN THE FINANCIAL CONDITION OR MARKET VALUE OF A SINGLE ISSUER MAY CAUSE A GREATER FLUCTUATION IN THE FUND’S NET ASSET VALUE THAN IN A “DIVERSIFIED” FUND. THE FUND IS NOT INTENDED TO BE A COMPLETE INVESTMENT PROGRAM. YOU SHOULD NOT EXPECT TO BE ABLE TO SELL YOUR SHARES OTHER THAN THROUGH THE FUND’S REPURCHASE POLICY, REGARDLESS OF HOW THE FUND PERFORMS. THE FUND DOES NOT INTEND TO LIST ITS SHARES ON ANY SECURITIES EXCHANGE DURING THE OFFERING PERIOD, AND THE FUND DOES NOT EXPECT A SECONDARY MARKET IN THE SHARES TO DEVELOP. AS A RESULT OF THE FOREGOING, AN INVESTMENT IN THE FUND’S SHARES IS NOT SUITABLE FOR INVESTORS THAT REQUIRE LIQUIDITY, OTHER THAN LIQUIDITY PROVIDED THROUGH THE FUND’S REPURCHASE POLICY. THE SUCCESS OF THE FUND DEPENDS IN LARGE PART UPON THE ABILITY OF THE ADVISER TO CHOOSE SUCCESSFUL INVESTMENT MANAGERS AND UPON THE ABILITY OF THE ADVISER AND THE INVESTMENT MANAGERS TO DEVELOP AND IMPLEMENT INVESTMENT STRATEGIES THAT ACHIEVE THE FUND’S INVESTMENT OBJECTIVES. NOT FDIC INSURED, NO BANK GUARANTEE, MAY LOSE VALUE

Shareholder Services 1.855.653.7173 Sub-Distributor 1.800.667.3875 Distributor BNY Mellon Distributors Inc.

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Disclosure Statements

 Versus Capital Multi-Manager Real Estate Income Fund LLC (the “Fund”) is an investment company, as defined under the Investment Company Act of 1940, as amended (the “40 Act”). The Fund is a continuously offered closed-end mutual fund, registered under the Investment Company Act of 1940. The Fund is designed to serve as a core real estate holding, providing access to institutional real estate managers and primarily consisting of a portfolio of direct real estate investment funds.  Versus Capital Advisors LLC (“Versus Capital” or the “Adviser”), is the adviser to the Fund and is an investment adviser registered with the Securities Exchange Commission (“SEC”) under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). Versus Capital is an independent asset management focused on building and managing alternative investment products that seek to have an income oriented return focus and low correlation to the broader equity and debt indices. Versus Capital builds these products to give individual investors access to institutional managers once reserved for foundations, endowments, pensions and other institutions.  Callan Associates (“Callan”) is the sub-adviser to Versus Capital and the Fund. Callan, a registered investment adviser under the Advisers Act, will assist the Adviser by providing research, due diligence and recommendations with regard to Investment Managers and Investment Funds for review and approval by the Adviser. Callan provides research, education, decision support and advice to over 230 institutional investors collectively responsible for over $1.0 trillion in total assets.  Advisors Asset Management (“AAM”) is the Sub-Distributor of the Fund. AAM is a broker-dealer registered with the SEC, a member of Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC). AAM is not affiliated with Versus Capital, Callan or the Fund.  BNY Mellon Distributors Inc. (“BNY/Mellon”) is the statutory underwriter for the Fund. BNY/Mellon is a broker-dealer registered with the SEC, a member of FINRA. BNY/Mellon is not affiliated with Versus Capital, Callan or the Fund.

Contents

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Introduction to Versus Capital

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Versus Capital Multi-Manager Real Estate Income Fund

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Why Invest in Direct Real Estate?

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Board of Directors

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Sub-Adviser - Callan Associates

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Contact Information

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Introduction to Versus Capital

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Versus Capital is a registered investment advisor under the Advisers Act, focused on building and managing alternative investment products that seek to have an income

• riented return focus and low correlation to the broader equity and debt indices.
• Our goal is to help investors achieve less volatile, long-term investment portfolio

success

• Our Principals have significant experience building, managing, and distributing

alternative investment products (specifically real estate related)

• We build investment products to give individual investors access to institutional

managers

• We primarily seek to invest with institutional managers with strong and long

track records

• Our efforts are supported by the research and consulting advice of one of the

largest independently owned investment consultants – Callan Associates Inc.

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Introducing Direct Real Estate in a Mutual Fund

• Income Focused
• No Upfront Load*
• Daily NAV
• Quarterly Liquidity
• 1099

* No upfront sales charge/load upon purchasing shares. The Fund does pay an ongoing distribution, marketing and servicing fee.

Versus Capital Multi-Manager Real Estate Income Fund Closed End Fund – Initial Offering $750,000,000

The Fund has been formed as a Delaware limited liability company and is registered as a non-diversified, continuously offered closed-end investment company under the 40 Act. The Fund will offer up to $750 million worth of shares, to be registered under the Securities Act of 1933, as amended. This summary is prepared solely for the purposes of illustration and discussion; it is not complete and should not be relied upon as such. The information contained should not be used or considered as an offer to sell, or a solicitation or an offer to buy, any security. The mention of specific managers, funds or asset classes is not a recommendation or solicitation for any person to buy, sell or hold any particular manager, fund or asset class. Fund composition is subject to change as market conditions change and funds are added or subtracted per the advice of the sub-adviser and discretion of the adviser.

Versus Capital Multi-Manager Real Estate Income Fund

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Fund Objectives:

• Consistent current income
• Capital preservation
• Long-term capital appreciation

Potential Investment Benefits:

• Current income
• Portfolio diversification
• A potential hedge against inflation
• Capital preservation
• Long-term capital appreciation

* No upfront sales charge/load upon purchasing shares. The Fund does pay an ongoing distribution, marketing and servicing fee. ** In addition to the management fee, the Fund has other operating expenses, among them include the expenses incurred by underlying investment funds and the fees charged by investment managers acting as sub-advisers to the Fund.

Versus Capital Multi-Manager Real Estate Income Fund

Fund Information Adviser Versus Capital Advisors LLC Sub-Adviser Callan Associates Inc. CUSIP# 92532P108 Minimum Investment $10,000 Upfront Sales Charge None* Liquidity Quarterly, via tender offer Lock-up None Early Withdraw Charge 2% - First 12 months Dividend Quarterly Tax Reporting 1099 Management Fee 0.95%**

Versus Capital Multi-Manager Real Estate Income Fund

8 Institutional Managers

Shareholder Shareholder Shareholder Shareholder Shareholder Shareholder

Versus Capital Multi-Manager Real Estate Income Fund LLC (the “Fund”) Board of Directors

Majority Independent

Versus Capital Advisors (the “Adviser”) Callan Associates Inc. (the “Sub-Adviser”)

. While the Approved Managers have been reviewed and approved by the Sub-Adviser and accepted by the Adviser, there is no guarantee that any one Approved Manager will receive an allocation of the Fund's assets for investment. The mention of specific managers, funds or asset classes is not a recommendation or solicitation for any person to buy, sell or hold any particular manager, fund or asset class. Fund composition is subject to change as market conditions change and funds are added or subtracted per the advice of the sub-advisor and discretion of the advisor.

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Institutional Multi-Manager Approach

• Institutional real estate mangers typically only available to institutional investors

with high minimum investments

• Multi-manager helps the fund diversify its risk by manager, strategy, geography,

and property type

Approved Managers Real Estate AUM

(billions*) UBS Global Asset Management, Global Real Estate $62 J.P. Morgan Asset Management- Global Real Assets $55 AEW Capital Management (and affilates) $48 Invesco Real Estate $45 Cornerstone Real Estate Advisers $30 Heitman $24 DEXUS Property Group $14 European Investors Incorporated $8 Forum Securities Limited (and affilates) $6 Security Capital Research & Management $5

* As of June 30, 2011

Versus Capital Multi-Manager Real Estate Income Fund

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Manager Selection

Versus Capital Multi-Manager Real Estate Income Fund

Establish Appropriate Manager Profile Quantitative Screening Qualitative Screening Manager Search Committee

Selection of Investment Managers & Investment Process

Managers Selected

123 83 59 41 27

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RFI's sent to institutional real estate managers Managers completed the RFI Managers made it through the screening Managers were approved by the Callan Search Committee Semi-finalists interviewed Semi-Finalist Review

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Sub-Adviser

• One of the largest independently owned investment consulting firms in the

country

• Provides research, education, decision support and advice to over 230

institutional investors responsible for over $1.0 trillion in total assets

• Employs more than 150 people and maintains four regional offices located in

Denver, Chicago, Atlanta, and Florham Park, N.J

• In 1988, Callan developed its first specialty consulting group with the

formation of a division focused solely on the real estate asset class

• The real estate team has approximately 300 manager meetings per year

Versus Capital Multi-Manager Real Estate Income Fund

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Why Invest In Direct Real Estate?

For a number of reasons, including the following benefits, institutional investors such as pension funds and endowments have embraced real estate as a major asset class for purposes of allocations within their investment portfolios. In fact, institutions that invest in commercial real estate target an average allocation of 10.3% of their portfolios to the sector, according to a January 2011 survey by Kingsley Associates and Institutional Real Estate, Inc.

• Income Oriented Returns: a large percentage of the return provided to

investors comes in the form of income rather than capital appreciation.

• Diversification a& Risk Adjusted Returns: Adding real estate to a portfolio

can provide diversification in an investor’s portfolio, potentially reducing portfolio risk or increasing portfolio returns for a given risk.

• Inflation Hedge: The Adviser believes that real estate has historically been a

good hedge against inflation. Potential Benefits of a Real Estate Allocation

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Why Invest In Direct Real Estate?

Attractive and Consistent Income

Past performance does not guarantee future results. This chart represents the annual average income returns for the indices discussed below over a 15 year period ending June 30, 2011. These charts compare the performance of the NFI-ODCE (the direct real estate proxy). NCREIF Fund Index-Open End Diversified Core Equity (“NFI-ODCE”), an index of investment returns of open-end commingled funds pursuing a core investment strategy, the FTSE EPRA/NAREIT Developed Index (the proxy for global publicly traded REITs), the Russell 3000 Index (the proxy for the broad domestic equity markets) and the Barclays Aggregate Bond Index (the proxy for the broad domestic fixed income markets). Source: Financial Times Stock Exchange (“FTSE”), European Public Real Estate Association (“EPRA”), National Association of Real Estate Investment Trusts (“NAREIT”), Russell Investments, Barclays Capital, and National Council of Real Estate Investment Fiduciaries (“NCREIF”). Index performance should not be construed as representing the past or future returns of the Versus Capital Multi-Manager Real Estate Income Fund. The Fund is new, with a limited performance record. Visit versuscapital.com for the Fund’s performance. Unlike a mutual fund, the performance of an index is not affected by

• perating expenses, transaction costs, and taxes. It is not possible to directly invest in an index.

7.26% 4.53% 1.73% 5.81%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00%

Direct Real Estate Publicly Traded REITs Stocks Bonds

Average Income Returns*

15 Years Ended June 30, 2011

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Why Invest In Direct Real Estate?

Past performance does not guarantee future results. This chart represents the annual average performance for the indices discussed below over a 15 year period ending June 30, 2011. These charts compare the performance of the NFI-ODCE (the direct real estate proxy). NCREIF Fund Index-Open End Diversified Core Equity (“NFI-ODCE”), an index

• f investment returns of open-end commingled funds pursuing a core investment strategy, the FTSE EPRA/NAREIT Developed Index (the proxy for global publicly traded REITs),

the Russell 3000 Index (the proxy for the broad domestic equity markets) and the Barclays Aggregate Bond Index (the proxy for the broad domestic fixed income markets). Source: Financial Times Stock Exchange (“FTSE”), European Public Real Estate Association (“EPRA”), National Association of Real Estate Investment Trusts (“NAREIT”), Russell Investments, Barclays Capital, and National Council of Real Estate Investment Fiduciaries (“NCREIF”). Index performance should not be construed as representing the past or future returns of the Versus Capital Multi-Manager Real Estate Income Fund. The Fund is new, with a limited performance record. Visit versuscapital.com for the Fund’s performance. Unlike a mutual fund, the performance of an index is not affected by operating expenses, transaction costs, and taxes. It is not possible to directly invest in an index. Sharpe Ratio: A risk-adjusted measure, calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund's historical risk-adjusted performance. Standard Deviation: Depicts how widely returns varied over a certain period of time. A high standard deviation implies a greater volatility and greater risk.

Risk Adjusted Performance

Historical Total Returns (15 Years Ended June 30, 2011) Average Total Return Standard Deviation

(% annually) (% annually)

Direct Real Estate 8.30% 7.47% 0.68 Publicly Traded REITs 8.42% 22.12% 0.23 Stocks 6.77% 18.66% 0.19 Bonds 6.32% 3.51% 0.88 Sharpe Ratio

Diversification & Risk Adjusted Returns

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Why Invest In Direct Real Estate?

Past performance does not guarantee future results. These charts compare the performance of the NFI-ODCE (the direct real estate proxy). NCREIF Fund Index-Open End Diversified Core Equity (“NFI-ODCE”), an index of investment returns of open-end commingled funds pursuing a core investment strategy, the FTSE EPRA/NAREIT Developed Index (the proxy for global publicly traded REITs), the Russell 3000 Index (the proxy for the broad domestic equity markets) and the Barclays Aggregate Bond Index (the proxy for the broad domestic fixed income markets). Source: Financial Times Stock Exchange (“FTSE”), European Public Real Estate Association (“EPRA”), National Association of Real Estate Investment Trusts (“NAREIT”), Russell Investments, Barclays Capital, and National Council of Real Estate Investment Fiduciaries (“NCREIF”). Correlation Coefficient: The correlation coefficient a concept from statistics is a measure of how well trends in the predicted values follow trends in past actual

• values. The correlation coefficient is a number between 0 and 1. If there is no relationship between the predicted values and the actual values the correlation

coefficient is 0 or very low (the predicted values are no better than random numbers). As the strength of the relationship between the predicted values and actual values increases so does the correlation coefficient. A perfect fit gives a coefficient of 1.0.

Correlation Coefficient

Historical Total Returns (15 Years Ended June 30, 2011) Direct Real Estate Publicly Traded REITs Stocks Bonds Direct Real Estate 1 0.13 0.16

• 0.11

Publicly Traded REITs 1 0.73

• 0.08

Stocks 1

• 0.33

Bonds 1

Diversification & Risk Adjusted Returns

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Why Invest In Direct Real Estate?

The chart shows the performance of the NFI-ODCE (the direct real estate proxy) during all years when there was above average inflation (above 4%) from 1978 thru 2010. Historically, in times of high inflation, real estate typically performed as a hedge against inflation.

Potential Inflation Hedge

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Mathew Murphy Independent Director Real Estate & Accounting Background Chair of the Audit Committee Member of the Valuation Committee B.S. Accounting– Colorado State University Paul Sven Independent Director Real Estate & Structured Finance Background Member of Investment, Audit & Nominating Committees B.A. Economics– St. Lawrence University Casey Frazier, CFA CIO Director Real Estate & Asset Management Background Chair of the Investment Committee Member of the Valuation Committee B.A. American Political Economy – The Colorado College Mark Quam CEO Chairman of the Board Real Estate & Securities Background Member of Investment Committee B.S. Finance – University of Arizona Member of FINRA Corporate Finance Committee William Fuhs President and CFO Director Real Estate & Structured Finance Background Member of Investment & Nominating Committees B.A. Economics– Middlebury College Richard McCready Independent Director Real Estate Background Member of Investment, & Audit Committees B.A. –University of new Hampshire J.D.- Boston College

Board of Directors

Jeffery Jones Independent Director Real Estate Background Member of Investment, & Valuation Committees B.A. –Stanford University

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Avery Robinson Consultant San Francisco Office 5 years Real Estate Experience Real Estate Asset Management Background M.B.A. – Tippie School of Management, University of Iowa Research lead for open end funds, urban strategies, infrastructure, and emerging managers Jay Nayak Associate Consultant New Jersey Office 3 Years Real Estate Experience Real Estate Acquisitions and Asset Management Background B.A. – University of California at San Diego Research lead for REITs and Debt Strategies Sarah Angus, CAIA Vice President San Francisco Office 6 Years Real Estate Experience Callan Shareholder/CAIA Designation Performance Measurement Background B.A. – College of Charleston Research lead for Europe, Latin America, and Timber Jamie Shen Practice Leader, Alternative Investments Consulting San Francisco Office 18 years Real Estate Experience Callan Shareholder/Management Committee B.S. – University of California at Berkeley, Haas School of Business, PREA, NCREIF Research lead for agriculture Sally Haskins Senior Vice President Chicago Office 20 years Real Estate Experience Consulting, Manager Selection, Portfolio Management, Acquisitions, and Marketing Background M.S. – Real Estate Appraisal and Investment, University of Wisconsin-Madison Research lead for Asia Lauren Talbot Associate Consultant San Francisco Office Performance Measurement Background New Offerings Research Database Management B.A. – Dartmouth College

Sub-Adviser – Callan Associates

Real Estate Advisory Team

Versus Capital Advisors LLC

7100 E. Belleview, Suite 306 Greenwood Village, CO 80111 1-877-343-7916 www.versuscapital.com _____________________ Sales and Marketing Information: Advisors Asset Management 18925 Base Camp Road Monument, CO 80132 1-800-667-3875