Personal experience with PPR Note Fund

[William Blair]

Anyone have any experience with PPR Note Fund?

[Kelly Byrd]

@Justin Cress: The Colonial Impact fund is structured a little differently than the PPR fund. 

With PPR (at least the fund I am in), the setup feels much like you are getting interest payments on a loan. It isn't a loan, I'm just using that as a description. Here is what I mean: The fund has a preferred return, you get that every month. If there is more upside in the fund, you don't participate in that. You get up to the preferred return, nothing more. From the research I did, they have always hit their preferred return. The overall effect is much like a consistent monthly payment on a loan. This wasn't a surprise, it was made clear reading the operating agreement and talking to them on the phone. 

With the Colonial Impact II fund, the capital took about three months to deploy, during that time, I earned nothing on the money except for a week or two right at the end.  This wasn't a surprise either, the operating agreement and conversations I had beforehand set expectations that this could happen. But I hoped it would be deployed faster. Payments come quarterly (or are re-invested quarterly), There's a lower preferred return than PPR, but you participate in the upside if the fund beats the preferred return. So overall, less consistent payment but more potential for upside.