Investment Model
The investment model and other information provided in this section relate to
Steel Returns LP.
Steel Returns LP is the master fund that investor returns are drivin by.
Subscriptions
Steel Returns LP allows Limited Partners who meet the criteria of an Accredited Investor as defined below, the opportunity to purchase units in Steel Returns LP. Each unit is $1.00, and the initial minimum purchase is 25,000 units. An Investment may be increased by any amount after the minimum initial investment.
While there are provisions allowing for withdrawal for Steel Returns LP, this investment is a long term investment and should not be used like a savings account. There are no withdrawals allowed for the first 12 months of investment.
Steel Returns Limited Partners may elect to receive their earnings distribution monthly via electronic deposit, or select the growth option, where earnings are retained by Steel Returns LP and automatically reinvested on their behalf.
Limited Partner Responsibilities
The Limited Partner should seek competent legal, accounting and tax advice to insure that an investment of this type is right for them. The Limited Partner should also review the Steel International & Steel Returns LP Offering Circulars. These documents detail the financial arrangements and risks.
All investors in The Fund must be accredited.
An Accredited Investor, as defined by the Securities and Exchange Commission (SEC), must have:
- A minimum net worth of $1,000,000, which cannot include an individual’s primary residence; or
- An annual income of $200,000 or more for the past two years as an individual or $300,000 annual income for the last two years as two people investing together.
- To comply with Federal regulation, the General Partner’s compliance department verifies that all Investors are accredited.
See the Offering Circular for further details on Accredited Investors.
General Partner Responsibilities
The General Partner, or their designee, researches, evaluates, underwrites, assesses risk and selects what auto loan cash flows The Fund invests in. To maximize benefits to the Limited Partners, the General Partner, or their designee, exercises due diligence in order to provide The Fund aggressive returns without undue risk.
The General Partner, or their designee, oversees the servicing of all loans. Servicing includes, but is not limited to:
- Receipt and accounting of all payments
- Following standard protocol for delinquent payments
- Managing repossession and disposition
- Providing payoff information to borrowers
Completing monthly accounting
The General Partner, or their designee, is responsible for fund compliance, including:
- Having federal and state income tax returns prepared timely by an outside accounting firm
- Providing all Limited Partners the appropriate tax documents on an annual basis
Maintaining registration with required government entities
The Limited Partners should seek competent legal, accounting and tax advice to ensure that an investment of this type is right for them.
| MINIMUM INVESTMENT | $25,000 |
|---|---|
| PREFERRED RETURN | 10% |
| MAXIMUM OFFERING AMOUNT/ CURRENT FUND SUBSCRIPTIONS | $100,000,000/$25,000,000 |
| SUBSCRIPTION ACCEPTANCE | Upon General Partner review |
| REDEMPTIONS | Quarterly with 90 days' notice |
| LOCK-UP | 12 months |
| GENERAL PARTNER INVESTMENT IN FUND | General Partner contributes |
| AUDITOR | Cathedral CPAs & Advisors, LLP |
| FUND ADMINISTRATOR | Steel Lending Group LLC |
| LEGAL COUNSEL | Geraci LLP |
| REPORTING | Monthly investor statements; annual K-1s and audited financial statements |
1 See full terms in the Offering Circular.