1 Preqin Pro, as of May 2023.
2 Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.
3 The Fund has substantial flexibility when implementing its investment strategy. Targeted investments, portfolio composition and investment strategy may change over time and there can be no assurance that investment objectives will be achieved. Detailed information regarding the Fund’s investment strategy as well as a complete list of the risks and other important disclosures involved in investing in the Fund are contained in the offering documents of the Fund, which must be reviewed carefully.
4 Cadre’s definition of the middle-market includes transactions in approximately the $50-$150mm total capitalization range, or assets too small for large asset managers and too large for smaller private buyers.
Important Legal Disclosures
This summary has been prepared by CCV LLC (“CCV”) for the purpose of furnishing information concerning a potential opportunity in the Cadre Direct Access Fund II LP and its parallel vehicles (collectively, “Fund II” and together with any funds, accounts or clients sponsored, managed or advised by CCV, the “Cadre Client Accounts”).
THIS SUMMARY DOES NOT CONSTITUTE AN OFFER OF INVESTMENT ADVISORY SERVICES BY CCV, NOR DOES IT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITY, OR AN INTEREST IN ANY CURRENT OR PROSPECTIVE CADRE CLIENT ACCOUNT. Such an offer, if made, can be made only through the confidential private placement memorandum of the applicable Cadre Client Account and such Cadre Client Account’s constituent documents (collectively, the “Offering Materials”), and only in jurisdictions where permitted by law. It is the responsibility of any potential investor to satisfy itself as to the full compliance with applicable laws and regulations of any relevant jurisdiction. The information contained herein is qualified in its entirety by reference to the applicable Offering Materials, which will contain information about the investment objectives, terms and conditions of an investment in the applicable Cadre Client Account, as well as certain tax information, risk disclosures and conflicts of interest. Prospective investors must carefully review the Offering Materials and perform their own examination and inspection of the opportunity and information relating thereto, including the merits and risks involved and the legality and tax consequences of such an investment, and must rely solely on such examination and investigation and not on this summary or any other materials, statements or information contained herein when making an investment decision. Each prospective investor should consult its own legal, financial, accounting and tax advisors as to the advisability of investing in a Cadre Client Account.
Investing in private placements requires high-risk tolerance, low-liquidity concerns and long-term commitments. Prospective investors must carefully consider their investment objectives along with the risks, charges, expenses and other factors of any investment product prior to investing. In particular, investments in a Cadre Client Account are highly speculative and are not intended as a complete investment program. They are designed only for sophisticated investors who can bear the economic risk of the loss of their entire investment and have limited need for liquidity. Investments in a Cadre Client Account will be leveraged, which increases the volatility of investment returns and subjects the Cadre Client Account to magnified losses if investments decline in value. The fees, costs and expenses charged in connection with an investment in a Cadre Client Account could be higher than the fees, costs and expenses of other investment alternatives and could offset profits. The possibility of partial or total loss of capital will exist and prospective investors must be prepared to bear capital losses that could result from investments. Prospective investors should be aware that the information provided herein does not constitute investment advice and does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it.
This summary is based on matters as they exist as of the date of preparation, has not been audited, is not complete and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. CCV undertakes no duty to update the information herein. Delivery of this summary as of any future date does not create an expectation that CCV has updated the information herein or that the information contained herein is correct as of any time subsequent to the date this summary was originally prepared. All information provided in and through this summary is provided “as is”, with no guarantee of completeness, accuracy, and timeliness, or the results obtained from the use of the information. Certain information contained herein, concerning economic trends and performance, are based on, or derived from, information provided by independent third-party sources, and CCV is not responsible for any inaccuracies, omissions and dated information contained in such third-party information.
This summary contains information, including financial information, which is incomplete and subject to further change. This summary may include “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Such statements include statements regarding the intent, opinion, belief or current expectations of CCV with respect to, among other things, (i) goals and strategies, (ii) investments, (iii) marketing plans and target markets, (iv) evaluation of securities or other investment markets, competition and competitive positions and (v) trends which may be expressed or implied by financial or other information or statements contained herein. Such statements are made based upon CCV’s views as they exist as of the date this summary was originally prepared (except as otherwise indicated). There can be no assurance that such views are correct or will provide, with the passage of time, to be correct. Such forward-looking statements, including any target return, contained in this summary are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and other factors that may cause actual results, performance and outcomes to be materially different from any future results, performance or outcomes expressed or implied by such forward-looking statements. Investors should not rely upon such forward-looking statements in making investment decisions.
Any statements involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that such opinions or estimates will be realized. Any opinions, estimates or illustrative examples presented herein reflect CCV’s current expectations and are not intended to serve as binding limitations or guidelines. Such opinions, estimates and examples are unlikely to reflect Cadre Client Accounts’ actual practice or operation in any particular instance or over any period of time. The information, opinions, estimates and examples contained in this summary are subject to change without notice. Reliance should not be placed on the information, opinions, estimates and examples contained in this summary, and such information, opinions, estimates and examples should not form the basis for an investment decision. To the fullest extent permitted by law, CCV and its affiliates and their respective officers, directors, managers, stockholders, partners, members, employees, agents and other representatives accept no responsibility for any damages resulting from information provided in these summary, including any forward-looking statements or statements involving matters of opinion, estimates or examples, and disclaim any liability whatsoever (including for negligence) for any loss howsoever arising from any use of this summary or its contents or otherwise arising in connection therewith.
Historical information is provided for informational purposes only.
CCV is a registered investment adviser with the U.S. Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply a certain level of skill or training. Neither the SEC nor any state foreign securities commission or regulatory authority has recommended, approved or disapproved of any securities offered by CCV or passed upon the adequacy or accuracy of the materials in this summary. Any representation to the contrary is a criminal offense.
Cadre Cash: Cadre Cash LLC offers Cadre Cash which facilitates the opening and managing of Cadre Cash Accounts. Neither Cadre Cash LLC nor Cadre is a bank. Banking services provided by Evolve Bank & Trust (“Bank”), Member FDIC.
Liquidity Not Guaranteed: Investments offered by Cadre are illiquid and there is never any guarantee that you will be able to exit your investments on the Cadre Secondary Market or at what price an exit (if any) will be achieved.
Not a Public Exchange: The Cadre Secondary Market is NOT a stock exchange or public securities exchange, there is no guarantee of liquidity and no guarantee that the Cadre Secondary Market will continue to operate or remain available to investors.
Private Securities: Any securities offering is private and you may be required to verify your status as an ‘Accredited Investor’ to participate. No securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through us. Please refer to the investment opportunity and memorandum for additional information and disclaimers.
© Cadre 2023. Broker-dealer services in connection with an investment are offered by RealCadre LLC, a broker/dealer registered with
FINRA and a member of
SIPC. Information on all FINRA-registered broker-dealers can be found on FINRA’s
BrokerCheck. Banking services are provided by Synapse’s bank partners, Members FDIC.
Important Disclosure Regarding Calculation of Net IRRs
Because the Realized Net IRR and Liquidation Net IRR (collectively and individually as applicable, “Net IRR”) calculations presented herein reflect cash contributions by, and distributions to, all of the investors in Fund I or the applicable Deal by Deal Vehicle, some of which bear different (and lower) management fees and/or were admitted to Fund I or such Deal by Deal Vehicle after its first closing, the actual Net IRR of any individual investor is either lower or higher than the Net IRR that is shown in this presentation. In particular, all else being equal, (i) the Net IRR of an individual investor that is subject to reduced management fees will generally be higher than the Net IRR of an individual investor that is not subject to reduced management fees and (ii) the Net IRR of an individual investor that participated in the initial closing of Fund I or the Deal by Deal Vehicle (i.e., a “first closer”) will generally be lower than the Net IRR of an individual investor that participated in a subsequent closing because of the additional amount of time over which such first closer’s capital contributions remained invested in Fund I or such Deal by Deal Vehicle.
Prospective investors should be aware that Fund I and Deal by Deal Vehicles typically borrow funds in advance of calling capital. As such, investors in Fund I and Deal by Deal Vehicles have correspondingly later contributions than would have been the case in the absence of such borrowings and are required to bear interest expenses thereon, which results in expenses that are higher than would have been the case in the absence of such borrowings. Since internal rate of return calculations are time weighted, and the relevant calculations would incorporate longer periods of time during which capital is deployed had Fund I or such Deal by Deal Vehicles not borrowed funds in advance of calling capital, such borrowing results in a Net IRR that is higher than would have otherwise been the case.
Important Disclosure Regarding Investment-Level Net Performance
Each investment made by Cadre (i) from inception until the formation of Cadre’s Investment Committee on March 31, 2016 and (ii) from March 31, 2016 through the measurement date, which investments were voted on by Cadre’s Investment Committee, has been made through a separate Deal by Deal Vehicle, either on a standalone basis or in parallel with other vehicles sponsored, managed or advised by Cadre, including Fund I.
Prospective investors should note that any investment-level performance (whether realized or unrealized) shown herein, including performance with respect to investments held by Fund I, has been calculated with respect to the applicable Deal by Deal Vehicle that invested (or co-invested alongside Fund I, as applicable) in such investment. With respect to investments that were made by both a Deal by Deal Vehicle and Fund I, no attempt has been made to illustrate the actual net performance of any such investment in Fund I by allocating fund-level management fees and expenses of Fund I to individual realized and unrealized investments, or otherwise. Nevertheless, prospective investors should note that the actual weighted average management fee rates (which fee rates range from 0% to 2% for individual investors in such Deal by Deal Vehicles) and commitment fee rates (which fee rates range from 0% to 4% for individual investors in such Deal by Deal Vehicles), as well as the average expense ratios (approximately 1%) borne by investors in such Deal by Deal Vehicles that co-invested alongside Fund I are higher than what institutional investors in Fund I bear, and are also (on a combined basis) higher than the fee rates and expense ratio that are expected to be borne by institutional investors in the Fund.
While Cadre believes that such higher fee rates and expense ratios will generally result in net performance metrics with respect to a Deal by Deal Vehicle that are lower than those with respect to the same investment in Fund I (assuming a methodology for calculating investment-level performance in Fund I that proportionately allocates, among other things, all fund-level fees and expenses to each Fund I investment based on its acquisition cost), it should be noted that using another methodology to compute net performance for individual investments in Fund I (by way of example only, by calculating the absolute value difference between the gross fund-level performance and net fund-level performance for Fund I and applying such difference to the gross investment-level performance for an individual investment in Fund I) could result in different, or lower, net performance metrics than those shown for Deal by Deal Vehicles herein. Cadre makes no representation or warranty that the net performance metrics for Deal by Deal Vehicles are more accurate or more representative of the net performance of an individual investment in Fund I as compared to the net performance derived by using other methodologies. No such net performance metric is in any way a guarantee or indicative of the future operating performance of Fund I, any other fund or account managed, sponsored or advised by Cadre or any investment of any of the foregoing. As such, all such net performance information with respect to individual investments set forth in this presentation has been provided to you on a non-reliance basis and for your reference and information only. Such performance information is qualified in its entirety by, and is subject to, the other performance disclosures set forth in this presentation.
