Fund structure
The Fund is structured as an open-ended pooled investment vehicle. Continuous capital raising is permitted, proceeds may be reinvested on an ongoing basis, and there is no fixed termination date.
Fund Terms
Headline terms at a glance.
A summary of the principal commercial terms of the Karncy SME Synergy Fund. Definitive terms are set forth in the Company Agreement and subscription documents.
- Fund structure
- Open-ended pooled investment vehicle
- Total fund raise
- USD 25,000,000
- Investor class
- Class A Members
- Minimum investment
- USD 250,000
- Eligibility
- Accredited investors only
- Lock-up period
- 3 years from subscription
- Distribution frequency
- At least annually
- Target distribution
- 8% per annum (not guaranteed)
- Profit split above 8%
- 80 : 20 (Investor : Manager)
Detail
The full picture.
Investor structure
Investors are admitted as Class A Members and must qualify as accredited investors. The minimum investment is USD 250,000. The Manager reserves the right to accept or reject any investor in its sole discretion.
Distributions
Distributions are made at least annually, subject to availability of distributable cash and the Manager's determination. The Fund targets — but does not guarantee — a minimum distribution of 8% per annum on invested capital. Any profits realised above the 8% annual distribution are split 80 : 20 between investors and the Manager, distributed based on actual cashflows. The full waterfall is defined in the Company Agreement.
Transferability
Interests may be transferred subject to Manager approval, in compliance with applicable laws and upon execution of required documentation. The Fund may admit new investors to replace exiting investors.
Risk management
The Karncy Platform supports the Fund's risk processes through ongoing monitoring of receivables and repayment cycles, data aggregation and credit analytics, and early identification of potential defaults. No assurance can be given that such systems will eliminate all risks.