Easiest Predictor Of Losing Money In A Fund

[Chris Seveney]

As someone who has worn both hats as a GP and a LP - here is a statistic which to date has had 100% accuracy in determining if the investment will not end up successful.

What is it?

Having Audited financials completed on time.

So how would you know? Several ways,

1. Many sponsors are going the regulation a+ offering route which requires them to be submitted 120 days after year end. Now some firms will miss that date, but if they do it should be within another 30-60 days. Thus they should be in by July 1. There are a significant number of entities who have yet to still file their 2022 audited financials (with 2023 due in about 80 days….)

If things are going well, it won’t take a year to submit audited financials…

2. Let’s say it’s a 506c, or 506b, I recommend only investing in those that have audited financials and again they should have those available by summer time of following year.

But if they do not, they also should be able to send unaudited financials by that time.

Ok share what is something as part of DD you feel is also a great predictor?