Thank you for investing in the PieLAB Real Estate Industry Venture Capital Fund 2016. Following is a list of questions that are frequently asked by Investors in the Fund. They provide a good overview of how the Fund works. Any words in capital letters have definitions provided in the glossary at the end of the document.
When do I need to have the money available that I intend to invest in the Fund?
As the Fund finds suitable investments, you will be issued a Capital Call. A Capital Call is a notice in writing that outlines how much of your remaining 80% investment you need to transfer to the Fund and by when. The Fund is required to give you at least 10 business days’ notice, but will give you as much notice as possible about potential upcoming Capital Calls.
Will I get dividends over the course of my investment?
When will I get my money back?
The Fund Term is 6 years from First Closing Date with the Manager having the option to extend (for Investor benefit) for 5 additional terms of 12 months, so the investment should be viewed as medium to long term. The Fund term would only be extended beyond 6 years if the Manager believed it was in the best interests of the Investors.
What return should I expect over the course of the Fund?
What sort of businesses will the Fund invest in?
Will I have any say in what businesses the Fund invests in?
The IM refers to Tax Exempt returns, what does this mean?
The IM refers to making investments through both a Trust and a Partnership. What does this mean?
On occasion, the Manager might identify an opportunity for investment which does not qualify as an Eligible ESVCLP Investment. In this circumstance the investment will be made through the Trust structure.
Can I use my superannuation to invest in the Fund?
How much money will be raised in the Fund? What if you raise too much? What if there is not enough?
The Fund Manager is confident that the target investment amount of $20M will be raised.
How do I apply?
When do I have to apply by?
Who determines what businesses the Fund invests in?
How is Due Diligence done?
How will I know how my investment is performing?
Can I sell or transfer my units in the Fund?
What are the fees paid to the Fund Manager?
The Manager will also be entitled to receive a performance fee as outlined in the Information Memorandum. The performance fee will only trigger should the performance of the Fund as a whole exceed its ‘performance hurdle’ of 8% per annum before tax. The fee will be payable only once all Investors have received their Capital Commitment plus a distribution equal to the performance hurdle. The Manager will receive 20% of the balance of proceeds as their performance fee, with the 80% going to Investors.
What expenses can the Manager charge the Fund?
On an ongoing basis, the Manager is entitled to the reimbursement of any ‘Outgoings’. Outgoings are expenses incurred in relation to the proper performance of the Manager’s duties in relation to the Fund. This could include, but is not limited to all administration, accounting, audit, legal, valuation, insurance, tax and custodial costs, and any expenses incurred in considering whether to undertake an investment.