LP distributions paused - syndication

[Soup Nikk]

I’ve been invested in the Ashcroft syndication fund since 2021. The GPs recently paused the class B distributions on account of high debt service fees and obligation.

They had purchased rate caps and that helped pay for some of the fees. However the main reason for pausing was to raise cash in order to buy new rate caps (at much higher rates than 2021).

Has anyone seen similar issues on their syndication deals (from before feds increased rateS) and is this a red flag or a one off scenario given the unprecedented rate hikes.

Otherwise they’ve been really good and communicating really well and with full transparency. I am also considering investing in their new fund this year, since as operators they are reputed and have a great track record and also can get some great deals in their pipeline.

Would love to hear feedback from other investors.