The SEC regulates private equity funds and has the right to investigate and prosecute any sponsors who represent returns as being “guaranteed.” There is a degree of risk associated with any investment, and it is up to each investor to assess that risk before investing.
Refer to the Private Placement Memorandum (PPM) for details. Start at page 17 of the PPM, which is page 23 of the PDF.
With all of that in mind, we have always paid investors on time and in full while preserving investor capital, and we don’t see that changing. This is due to the fund’s structure and strict lending criteria, which result in the fund making quality loans that are secured by first liens.