Investment Structure & Terms
Almega Capital is structured as a Limited Partnership with investors entering as Limited Partners (LPs). With each New Asset Acquisition, LP equity is diluted and spread across the portfolio in its entirety for greater diversity.
Legal Entity: Almega Capital Limited Partnership
General Partner: Almega Capital GP Inc.
Must be an accredited investor as outlined by the Confirmation of Accredited Investor Status form.
Minimum: 4 years (without penalty)
GENERAL PARTNER FEES
Management Fee: No management fee is taken by the General Partner.
Financing Fee: No financing fee is taken by the General Partner.
Performance Fee: 22.5% of profits upon full repayment of all invested capital. For further clarity, the General Partner does not earn a single dollar of profit until each LP’s initial investment has been fully repaid through distributions.
Acquisition Fee: 1.5% of total purchase price.
Liquidity Event: Subject to market conditions (to be determined by the LPC), a Liquidity Event will be held every two years to allow Limited Partners to exit if desired. The General Partner will either raise new equity or sell existing assets to provide this option.
Equity Reserve: At any point (upon 60 days notice), Limited Partners may have the option to request redemption of their units for fair market value, subject to a 5% early withdrawal fee. This option is only available with approval from the LPC.
Unit Sales: At any point, Limited Partners may sell their units as desired to any third party, provided that the Right of First Refusal to purchase the units at the agreed upon price is given to existing Limited Partners.
LIMITED PARTNERSHIP COMMITTEE (LPC)
A seven-seat panel of five nominated investors and two permanent General Partner representatives who collectively represent and execute the opinions and strategies of the Partnership as a whole. The five nominated positions are chosen by the LPs every two years through an election process. You must be an LP to hold a position on the LPC.
All free cash flow will be distributed to Limited Partners on a quarterly basis.
Limited Partners receive quarterly update reports and annual audited financial statements.