Are investments liquid? What if I need to take my money out before my term is up?

Published on April 25th, 2017 by

We offer best-efforts liquidity. Here’s how it works:

 

At any time after purchasing a Class A Interest, an Investor may request that the Managing Member purchase, or arrange for the purchase, of all or a portion of the Investor’s Class A Interest. Upon receipt of such a request, the Managing Member must use commercially reasonable efforts to arrange for the purchase, although there is no guaranty that the necessary funds will be available or that a buyer can be found. If the Managing Member is not able to purchase or arrange for the purchase of the Class A Interest, the Investor may either rescind or maintain the request.

 

In seeking to accommodate a request from an Investor, the Managing Member is not required to do any of the following: (i) purchase the Class A Interest for its own account; (ii) contribute money for the purchase; (iii) borrow money or dispose of assets; or (iv) take any other action the Managing Member believes would be adverse to the interests of the Company or its other Members.

 

If all or a portion of an Investor’s Class A Interest is purchased pursuant to the Investor’s request, the Investor’s rate of return could be reduced below 10%. Specifically, if the purchase occurs within six months following the date the Investor acquired its Class A Interest, then the return will be reduced from 12% to 10%, while if the purchase occurs more than six months but less than 12 months following the date the Investor acquired its Class A Interest, then the return will be reduced from 12% to 11%.

 

If more than one Investor asks the Managing Member to purchase or arrange for the purchase of a Class A Interest, the Managing Member will consider the requests in the order received.

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