Alternative Investment Fund Risk Disclosure

Privately offered investment vehicles are unregistered private investment funds or pools that may invest and trade in many different markets, strategies and instruments (including securities, non-securities and derivatives) and are NOT subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors. There are substantial risks in investing in Alternative Investment Funds. Each time you access this website, you acknowledge the following:

  • Alternative Investment Funds represent speculative investments and involve a high degree of risk. An investor could lose all or a substantial portion of his/her investment. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment in an Alternative Investment Fund.
  • Any investment in Alternative Investment Funds should be discretionary capital set aside strictly for long term speculative purposes.
  • An investment in an Alternative Investment Fund is not suitable or desirable for all investors. Only qualified eligible investors may invest in Alternative Investment Funds.
  • Alternative Investment Fund offering documents are not reviewed or approved by federal or state regulators and the offering of fund interests will not be federally or state registered.
  • Some Alternative Investment Funds may have little or no operating history or performance and may use hypothetical or pro-forma performance which may not reflect actual trading done by the manager or advisor and should be reviewed carefully. Investors should not place undue reliance on hypothetical or pro-forma performance.
  • An Alternative Investment Fund’s manager or advisor has total trading authority over the Alternative Investment Fund.
  • Alternative Investment Funds are not required to provide periodic pricing or valuation information to investors.
  • Some Alternative Investment Funds may provide little or no transparency regarding their underlying investments to investors.
  • Alternative Investment Funds which make private equity investments have certain different risks, generally including, among other things, no or limited redemption rights; illiquid portfolios and valuation difficulties; asset, market or industry concentration; portfolio company risks including competition and fluctuating distributions; operational and control risks including “key-man” risk; particular industry risks including retail business risks; and financing or additional funding risks.
  • An Alternative Investment Fund’s fees (including advisory fees and placement agent, distribution and/or portfolio acquisition fees) and expenses, which may be substantial regardless of any positive return, will offset the Alternative Investment Fund’s investment profits. If an Alternative Investment Fund’s investments are not successful, these payments and expenses may, over a period of time, deplete the net asset value of the fund.
  • An investment in an Alternative Investment Fund may be illiquid and there may be significant restrictions on transferring interests in an Alternative Investment Fund. There is currently no established secondary market for an investor’s investment in an Alternative Investment Fund and none is expected to develop.
  • Alternative Investment Funds may be leveraged (including highly leveraged), which increases risk, and an Alternative Investment Fund’s performance may be volatile.
  • Some Alternative Investment Funds may use a single advisor or employ a single strategy, which could mean a lack of diversification and higher risk.
  • Some Alternative Investment Funds and their advisors rely on the investment expertise and experience of third-party advisors, the identity of which may not be disclosed to investors.
  • Alternative Investment Funds and their managers/advisors may be subject to various conflicts of interest, including with respect to decisions which may affect their compensation.
  • The net asset value of an Alternative Investment Fund may be determined by its administrator and/or its manager. Certain portfolio assets may be illiquid and without a readily ascertainable market value. The value assigned to such securities may differ from the value an Alternative Investment Fund is able to realize. Instances of mispriced portfolios, due to fraud or negligence, have occurred in the industry.
  • Some Alternative Investment Funds may enter into swaps, futures, forwards, options and other derivative transactions for various hedging and/or speculative purposes that can result in more volatile fund performance.
  • Some Alternative Investment Funds may trade commodity interests or may execute a substantial portion of trades on foreign exchanges, which may increase risk of loss and material economic conditions and/or events may affect future results.
  • Some Alternative Investment Funds may involve complex tax structures, which should be reviewed carefully.
  • Some Alternative Investment Funds may involve structures or strategies that may cause delays in important tax information being sent to investors.

This summary of certain risks is not a complete list of the risks and other important disclosures involved in investing in an Alternative Investment Fund and is subject to the more complete disclosures, including risk factors, contained in a specific Alternative Investment Fund’s respective offering documents, which must be reviewed carefully. An Alternative Investment Fund’s past performance is not indicative and is no guarantee of its future performance.

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