Norada Capital Management suspending payments

[Paula Impala]

I invested in Norada Capital Management and was coming here to connect with others who have invested. Did not receive my payment from Norada this month (June) and just received the following notification in my email.

Any thoughts or recommendations from fellow investors.  Thank you in advance for any advice or insight.

Dear Valued Investor,

I hope you are well. As a lender (aka “Maker”) to Norada, you are a valued member of the Norada family.
The purpose of this correspondence is to provide you with an update on the repayment under the terms of the promissory note (“Note”) as an obligation of Norada Capital Management, LLC (“Norada”).
As with all businesses, Norada is subject to market factors that could impact its ability to make payments. Due to current market conditions and unforeseen financial challenges, we have decided to temporarily suspend distribution payments. This decision was not made lightly and comes after thorough deliberation and analysis of our current financial position.
This requires us to exercise our right to convert your Note and issue equity (aka membership interests) in Norada. You will recall that your Note allows Norada to convert the outstanding balance owed into equity and that it can redeem that equity in the future by repayment of the Note principal in full. There is nothing required by you related to your Note being converted. It happens automatically upon notice being sent.
As such, this email will provide you notice that Norada has chosen to exercise its right under the Note §6 to issue equity to you in Norada. Your equity is valued at the unpaid face value of the Note plus any accrued but unpaid interest. We expect to be in a position to redeem your interests in short order, and we will keep you posted, as always, on any developments in this regard.

We understand the importance of distributions to our investors and recognize the impact this decision may have on your financial planning. Please be assured that this suspension is temporary. We are committed to resuming regular distributions as soon as our financial situation stabilizes and improves.

Our primary goal is to ensure the long-term stability and sustainability of our business. By temporarily halting distributions, we can preserve capital, manage our resources more effectively, and invest in key areas that will drive future growth and profitability.

In the interim, we are taking strategic steps to strengthen our financial health, including cost-reduction measures, revenue-generating initiatives, and debt restructuring options. Our management team is dedicated to navigating through these challenges and emerging stronger.
We greatly appreciate your understanding and patience during this time. We remain committed to transparency and will keep you informed of any significant developments. If you have any questions or need further clarification, please feel free to contact me directly. (I will do my best to reply to your email in a timely manner.)
Thank you for your continued trust and support.
Sincerely,

Marco SantarelliFounder & CEONorada Capital Management

[Carlos Ptriawan]

Quote from @James Hamling:

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Bruce Parkinson:

Is anyone filing a complaint with the SEC or FINRA against Norada?

probably way to early to do that.. dont you think ?  I mean has anyone proven that something was not disclosed or done against SEC rules ? 

Everything I can find on this "notes investing" reads to me as CLO investing. 

And I think it may be more a matter of people jumping into CLO investing without really knowing or comprehending what they were even doing, as crazy as that sounds. 

Really ? CRE CLO is still regulated though. So CLO is still typically investing inside real estate, but this company seems operating more like fund manager/unregulated private equity when they invested to REV,

It has been a while Norada and Lane was on my "bizarre investment" watch list with their return level of post-usury level that can't be beaten or understood in this market in 21st century.

I was think before Norada is more like Peer Street , but no, he's more advanced than that. Even PS blowing up is not really news, it was expected.

What is inside the book of Norada really ?

No, from what I read the "notes" (CLO's) were completely separate from the real estate operations of things. 

And I found one business strategy talking about turning RadioShack into a crypto clearing house...

Nothing I found makes any real business sense to be honest. 

 haha crypto operating radioshack back-end with real estate flipper as storefront ; holy cow.... 

these kind of super return can only be done legally if you sell zepbound or nvidia H100 GPU lol lol

i hope nobody among us would be an actor inside next episode of netflix's 'American Greed' lol

[Engelo Rumora]

Quote from @Henry Clark:

BP monetize this.  

Ask @Carlos Ptriawan do an AI search o BP website.  He did an example on another post  on a subject I’m informed in. It covered about 80% of the considerations.  Your team can vet the rest.  

Charge $100 for the template and check off list.  I think most of these bad investment investors aren’t learning.  

Due diligence on Syndications.

Pay @Carlos Ptriawan $5,000 for his 20 minute AI search.  

How does this exactly work?

Carlos, ping me a message please mate

[Engelo Rumora]

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Bruce Parkinson:

Is anyone filing a complaint with the SEC or FINRA against Norada?

probably way to early to do that.. dont you think ?  I mean has anyone proven that something was not disclosed or done against SEC rules ? 

Everything I can find on this "notes investing" reads to me as CLO investing. 

And I think it may be more a matter of people jumping into CLO investing without really knowing or comprehending what they were even doing, as crazy as that sounds. 

Really ? CRE CLO is still regulated though. So CLO is still typically investing inside real estate, but this company seems operating more like fund manager/unregulated private equity when they invested to REV,

It has been a while Norada and Lane was on my "bizarre investment" watch list with their return level of post-usury level that can't be beaten or understood in this market in 21st century.

I was think before Norada is more like Peer Street , but no, he's more advanced than that. Even PS blowing up is not really news, it was expected.

What is inside the book of Norada really ?

No, from what I read the "notes" (CLO's) were completely separate from the real estate operations of things. 

And I found one business strategy talking about turning RadioShack into a crypto clearing house...

Nothing I found makes any real business sense to be honest. 

 haha crypto operating radioshack back-end with real estate flipper as storefront ; holy cow.... 

these kind of super return can only be done legally if you sell zepbound or nvidia H100 GPU lol lol

i hope nobody among us would be an actor inside next episode of netflix's 'American Greed' lol

Is AG on Netflix? I thought only on CNBC hehe

[Engelo Rumora]

Quote from @James Hamling:

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Bruce Parkinson:

Is anyone filing a complaint with the SEC or FINRA against Norada?

probably way to early to do that.. dont you think ?  I mean has anyone proven that something was not disclosed or done against SEC rules ? 

Everything I can find on this "notes investing" reads to me as CLO investing. 

And I think it may be more a matter of people jumping into CLO investing without really knowing or comprehending what they were even doing, as crazy as that sounds. 

Really ? CRE CLO is still regulated though. So CLO is still typically investing inside real estate, but this company seems operating more like fund manager/unregulated private equity when they invested to REV,

It has been a while Norada and Lane was on my "bizarre investment" watch list with their return level of post-usury level that can't be beaten or understood in this market in 21st century.

I was think before Norada is more like Peer Street , but no, he's more advanced than that. Even PS blowing up is not really news, it was expected.

What is inside the book of Norada really ?

No, from what I read the "notes" (CLO's) were completely separate from the real estate operations of things. 

And I found one business strategy talking about turning RadioShack into a crypto clearing house...

Nothing I found makes any real business sense to be honest. 

I was at a business dinner in NYC mid 2017 with a few Wall St guys and they said they would plow their retirement funds into Overstock (Beyond).

Similar concept, changed from e-commerce to crypto exchange.

They are still around and price is at what is was in 2017 although it did 10x at one point during crypto moon in 2021.

So I guess it is possible but highly unlikely IMO

[Carlos Ptriawan]

Quote from @Engelo Rumora:

Quote from @James Hamling:

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Bruce Parkinson:

Is anyone filing a complaint with the SEC or FINRA against Norada?

probably way to early to do that.. dont you think ?  I mean has anyone proven that something was not disclosed or done against SEC rules ? 

Everything I can find on this "notes investing" reads to me as CLO investing. 

And I think it may be more a matter of people jumping into CLO investing without really knowing or comprehending what they were even doing, as crazy as that sounds. 

Really ? CRE CLO is still regulated though. So CLO is still typically investing inside real estate, but this company seems operating more like fund manager/unregulated private equity when they invested to REV,

It has been a while Norada and Lane was on my "bizarre investment" watch list with their return level of post-usury level that can't be beaten or understood in this market in 21st century.

I was think before Norada is more like Peer Street , but no, he's more advanced than that. Even PS blowing up is not really news, it was expected.

What is inside the book of Norada really ?

No, from what I read the "notes" (CLO's) were completely separate from the real estate operations of things. 

And I found one business strategy talking about turning RadioShack into a crypto clearing house...

Nothing I found makes any real business sense to be honest. 

I was at a business dinner in NYC mid 2017 with a few Wall St guys and they said they would plow their retirement funds into Overstock (Beyond).

Similar concept, changed from e-commerce to crypto exchange.

They are still around and price is at what is was in 2017 although it did 10x at one point during crypto moon in 2021.

So I guess it is possible but highly unlikely IMO

 Tai Lopez is outright fraud based on utube ->  watch?v=TENZ8t8ufIM

you may want to check when this lopez guy had dinner with your friend. lol

[V.G Jason]

Quote from @Engelo Rumora:

Quote from @James Hamling:

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Bruce Parkinson:

Is anyone filing a complaint with the SEC or FINRA against Norada?

probably way to early to do that.. dont you think ?  I mean has anyone proven that something was not disclosed or done against SEC rules ? 

Everything I can find on this "notes investing" reads to me as CLO investing. 

And I think it may be more a matter of people jumping into CLO investing without really knowing or comprehending what they were even doing, as crazy as that sounds. 

Really ? CRE CLO is still regulated though. So CLO is still typically investing inside real estate, but this company seems operating more like fund manager/unregulated private equity when they invested to REV,

It has been a while Norada and Lane was on my "bizarre investment" watch list with their return level of post-usury level that can't be beaten or understood in this market in 21st century.

I was think before Norada is more like Peer Street , but no, he's more advanced than that. Even PS blowing up is not really news, it was expected.

What is inside the book of Norada really ?

No, from what I read the "notes" (CLO's) were completely separate from the real estate operations of things. 

And I found one business strategy talking about turning RadioShack into a crypto clearing house...

Nothing I found makes any real business sense to be honest. 

I was at a business dinner in NYC mid 2017 with a few Wall St guys and they said they would plow their retirement funds into Overstock (Beyond).

Similar concept, changed from e-commerce to crypto exchange.

They are still around and price is at what is was in 2017 although it did 10x at one point during crypto moon in 2021.

So I guess it is possible but highly unlikely IMO

That was your sign to never buy it. Do what they do, not what they say. Should've bot a laddered put against it.

Bank traders are crooks, nothing short of it. They are glorified car salesman on a trading floor.

[Henry Clark]

Quote from @Alphonso Swaby:

This  for me is the issue. All Investments has inherent risk, some more than others, but if Marco(Norada Capital) had information that there were significant problems with the investment since as early as December 2023 and continued to advertise and market his funds as doing well and never missing a payment, thus attracting new investor deposits. They were accepting deposits to their accounts just weeks prior to announcing conversion to equity.  If Marco(Norada Capital) knew  of significant problems that changed the baseline risk, but continued to market as usual with the intent to use the equity conversion clause, then that is a problem, ethically and likely legal as well. But it's early yet and we await Marco Response for more clarity on the situation. Interesting though, they have removed mention of the offering from their site as of yesterday

Coaching baseball.  Pitcher looks awkward. I walk out to the mound and ask if he is okay or hurting.  Guess what the answer is. Whether they are 13 or 25 years old?  

[Carlos Ptriawan]

based on very quick AI search , the norada failed because of REV and the REV failed because in 2023 it tried to acquire tuesday morning using convertible debt loan but on Q1 2022 the creditor in this case wells fargo bank, stopped the credit funding hence tuesday morning filed bankruptcy causing REV to file bankruptcy causing norada investor to lose money. 

From AI Financial difficulties: Despite the $35 million investment from REV, Tuesday Morning continued to struggle financially. The company revised its projections to forecast a potential $29 million adjusted EBITDA loss for the fiscal year following the acquisition. This suggests the capital injection was insufficient to fully stabilize the company's finances.
Bankruptcy filing: In February 2023, just months after the REV acquisition, Tuesday Morning filed for Chapter 11 bankruptcy protection for the second time. The company cited its creditors, led by Wells Fargo, terminating its ability to borrow more money to finance operations and accelerating credit facility obligations as contributing factors.

[V.G Jason]

Quote from @Carlos Ptriawan:

based on very quick AI search , the norada failed because of REV and the REV failed because in 2023 it tried to acquire tuesday morning using convertible debt loan but on Q1 2022 the creditor in this case wells fargo bank, stopped the credit funding hence tuesday morning filed bankruptcy causing REV to file bankruptcy causing norada investor to lose money. 

From AI Financial difficulties: Despite the $35 million investment from REV, Tuesday Morning continued to struggle financially. The company revised its projections to forecast a potential $29 million adjusted EBITDA loss for the fiscal year following the acquisition. This suggests the capital injection was insufficient to fully stabilize the company's finances.
Bankruptcy filing: In February 2023, just months after the REV acquisition, Tuesday Morning filed for Chapter 11 bankruptcy protection for the second time. The company cited its creditors, led by Wells Fargo, terminating its ability to borrow more money to finance operations and accelerating credit facility obligations as contributing factors.

 Goofy Wells Fargo backing up Tao Lopez? Wells Fargo can't get out of it's own way how does Tao keep doing this over and over again, and folks never remember?

It tapped out 02/2023? So for 1yr + Norada has been running on E or am I misreading that?

[Michael P.]

Exactly! This has also been on my bizarre investment watch list, that's why I'm so fascinated by these current developments. I even wondered if I should get in and out for one year before it blew up, but good thing I passed on that idea.

[Engelo Rumora]

Quote from @Michael P.:

Exactly! This has also been on my bizarre investment watch list, that's why I'm so fascinated by these current developments. I even wondered if I should get in and out for one year before it blew up, but good thing I passed on that idea.

Learn how to say "No" to good opportunities so you can say "Yes" to great one's

Time and retrospect are a great thing mate 

[Adam Michael Andrews]

The whole point of investing in a note is that in a downside case you have some sort of surviving claim in BK even if it suffers a haircut or is equitized at that point.

The fact that you are prematurely converted to equity in a default situation means you have the equity risk via that clause but have a capped upside if things go really well. This was basically a totally one-sided deal, even before you get to the part where they get to equitize you at their sole discretion. Good luck getting some kind of judgement as their defense in court will be that you are equity at this point.

There are plenty of standard ways to have subordinated notes that allows for a limited payment suspension, with specific terms usually escalating the note holders rights as the default period marches on. The clause itself is extremely vague and reads like a first draft that wasn’t reviewed by legal.

[Carlos Ptriawan]

Quote from @V.G Jason:

Quote from @Carlos Ptriawan:

based on very quick AI search , the norada failed because of REV and the REV failed because in 2023 it tried to acquire tuesday morning using convertible debt loan but on Q1 2022 the creditor in this case wells fargo bank, stopped the credit funding hence tuesday morning filed bankruptcy causing REV to file bankruptcy causing norada investor to lose money. 

From AI Financial difficulties: Despite the $35 million investment from REV, Tuesday Morning continued to struggle financially. The company revised its projections to forecast a potential $29 million adjusted EBITDA loss for the fiscal year following the acquisition. This suggests the capital injection was insufficient to fully stabilize the company's finances.
Bankruptcy filing: In February 2023, just months after the REV acquisition, Tuesday Morning filed for Chapter 11 bankruptcy protection for the second time. The company cited its creditors, led by Wells Fargo, terminating its ability to borrow more money to finance operations and accelerating credit facility obligations as contributing factors.

 Goofy Wells Fargo backing up Tao Lopez? Wells Fargo can't get out of it's own way how does Tao keep doing this over and over again, and folks never remember?

It tapped out 02/2023? So for 1yr + Norada has been running on E or am I misreading that?

so during the bankruptcy proceeding, the court only allowed 1/5 of funding requested ; after that event WFC increased the reserve requirements of their credit line for tuesday morning, forcing TM filed bankruptcy again. this time forcing the REV also to close the shop.


i still curious whether any of investor really really ever receive 25% annualized or this is just their day dream as well. 

Also the whole chain of event has correlation with hedge fund that's owned by ex-GS executive and this hedge fund is also fighting in court with Jeffries. What a total mess lol

https://dealbreaker.com/2023/11/hedge-fund-that-invested-in-...  

[Chris Seveney]

Quote from @Adam Michael Andrews:

The whole point of investing in a note is that in a downside case you have some sort of surviving claim in BK even if it suffers a haircut or is equitized at that point.

The fact that you are prematurely converted to equity in a default situation means you have the equity risk via that clause but have a capped upside if things go really well. This was basically a totally one-sided deal, even before you get to the part where they get to equitize you at their sole discretion. Good luck getting some kind of judgement as their defense in court will be that you are equity at this point.

There are plenty of standard ways to have subordinated notes that allows for a limited payment suspension, with specific terms usually escalating the note holders rights as the default period marches on. The clause itself is extremely vague and reads like a first draft that wasn’t reviewed by legal.

 I wonder if investors now that they are equity have language that in case of default they have to bring money to the table to cure the default... oh that would be a stinger....

As mentioned years ago on other forum posts - when getting a note, you really need to know what is securing it... 

[Carlos Ptriawan]

also look at https://www.justice.gov/usao-sdny/pr/founder-cyberfraud-prev... , the CEO of this company is serving 5 years in prison time.

What dealbreaker's analysis say the tuesday morning/REV/Invictus deals is similar to previous event in 2020 when Invictus (the bankruptcy specialist hedge fund) that tried to save Tuesday Morning in 2023 was also trying to save NS8 in 2020 but the NS8 CEO is stealing 125 mil to their own pocket and now in jail. Just last year the executives of Invictus is fired by the owner (ex-GS executive). 

What I don't get is the relationship between REV and Invictus. But co-owner of REV is also having site like deal.ai and such.... it was way more complicated than what we thought it was. It's total double collusion corruption mixed with highly leveraged debt + scam + ponzi.

[Adam Michael Andrews]

Quote from @Chris Seveney:

Quote from @Adam Michael Andrews:

The whole point of investing in a note is that in a downside case you have some sort of surviving claim in BK even if it suffers a haircut or is equitized at that point.

The fact that you are prematurely converted to equity in a default situation means you have the equity risk via that clause but have a capped upside if things go really well. This was basically a totally one-sided deal, even before you get to the part where they get to equitize you at their sole discretion. Good luck getting some kind of judgement as their defense in court will be that you are equity at this point.

There are plenty of standard ways to have subordinated notes that allows for a limited payment suspension, with specific terms usually escalating the note holders rights as the default period marches on. The clause itself is extremely vague and reads like a first draft that wasn’t reviewed by legal.

 I wonder if investors now that they are equity have language that in case of default they have to bring money to the table to cure the default... oh that would be a stinger....

As mentioned years ago on other forum posts - when getting a note, you really need to know what is securing it... 

If you find a piece of paper with "I promise to pay the bearer of this promissory note $1T" printed on it most people would have the sense to not start celebrating because they know it's not backed by anything. But pick a smaller number  and put a roughly believable 12% rate in the language and suddenly the purchases and celebrations start.

In this case, there was also a poorly hidden "unless things go poorly" written.

[James Hamling]

Curiosity killed the cat.... So I had some unexpected time before call and needed a break from analysis so I dug a bit as-if I were considering investing into this. 

GreatGougaMouga is there horrific things out there on this business's and people. Some really serious accusations by some very serious credible persons in the investment space INCLUDING one claiming to have 2nd hand insider 411 that can't lend public disclosure due to NDA's but that criminal charges are expected very soon, and really shady DEEPLY shady things on significant scale. 

Again, being said by some with sterling reputations who don't say such things randomly. 

With all that I gotta wonder, I am seriously curious, why persons invested or kept there $$$$ invested with this group this last year????    If just never looked, didn't research, or if had some reason to believe counter to that info found? I am seriously curious, no judgement made just curious why you (if any reading this did) put $ in there and left it there. 

[Michael P.]

 This is in reference to the Norada Capital entity or the REV entity they invested in?

[V.G Jason]

This board needs to pin a Wall of Shame. The one's cooked and the one's getting cooked. It really would help the newbies out on what to avoid.

It seems like it's always the new people that get duped, then there stories from being duped resonate and fill the others with fear. When in reality there are fair operators, but it's always the bad that keep the sting going on. There's also non fraudulent, just poorly managed that needs an egg dropped on them too just not on the Wall of Shame like Open Door. 

Lots of new posters creating accounts just to get insight on this, as their money is getting toasted. Think I read the minimum entry for this is $50k. That's not an entry level fund. We are going to continue to hear more of this, looks like marco & norada are getting the heat when just a minute ago it was Lame with WealthLoser. We'll see whose next, but this is not done. These are all domino and cascading.

I had to tell another fella on another thread to consult an attorney for a HML deal, because it's that type of behavior that gets duped then they come back a year later saying they lost the money and wonder why. Read the disclaimer, do some digging, highlight what you don't understand ask a lawyer for $200-$500 to run it through with you. It's worth the price of admission, or just deduct $200-500 from what you're ponying up for the peace of mind if 200-500 is really changing how you move. If it is, probably don't invest, but that's another story.

[James Hamling]

Quote from @Michael P.:

 This is in reference to the Norada Capital entity or the REV entity they invested in?

Reference to seemingly anything/everything Tai Lopez touches. There seems to be many hidden tie-in arrangements between entities so can't really say any 1 from what I've read/heard. 

[Paul Azad]

Financial scams can be Exploitative of people's emotions and the shame in admitting to family and friends that they were duped when typically the investors are felt in their family and friend groups to be the most financially savvy and therefore less capable of getting exploited. For example, Bernie Madoff started his Ponzi in the mid 1970s and it ran until December of 2008 and very few people ever took out their money even after it collapsed. Unfortunately, they only recovered 14.1 billion of the 42 billion he stole. People blithely received their 14 to 15% yearly whether markets were up or down and they never wanted to peer behind the curtain to see what was going on. And many of these investors were extremely sophisticated and savvy hedge funds and pension funds, including hundreds of educated retirees and professors and mathematicians and people with long careers in finance. Some investors did know it was a Ponzi, and actually blackmailed Madoff to get higher returns/payouts, but that was effectively stealing from the less savvy investors as well, so they became complicit with Madoff. some likely suspected but rode the Dragon as long as they could hoping to get out before it crashed, but that's an attempt to catch a falling knife, which never ends well. 

[Dinesh Subedi]

This is very concerning and disturbing. Unsure how to proceed further

[Jamie Brasseal]

If you are or were an investor of Norada Capital Promissory Note, there is an investor only FB forum where you can share and recieve information regarding the default notice. https://www.facebook.com/groups/1161232915077076

[Don Konipol]

I am not a debt investor, a bond investor nor am I an investor in corporate debt, private equity debt, peer to peer lending, etc.  I am an investor in debt DIRECTLY secured by REAL ESTATE.  

I have enough problems correctly underwriting real estate debt; I can’t imagine the problems I’d have trying to CORRECTLY analyze risk in private equity corporate deals based on the revitalization of bankrupt brands. 

[Jay Hinrichs]

Quote from @Don Konipol:

I am not a debt investor, a bond investor nor am I an investor in corporate debt, private equity debt, peer to peer lending, etc.  I am an investor in debt DIRECTLY secured by REAL ESTATE.  

I have enough problems correctly underwriting real estate debt; I can’t imagine the problems I’d have trying to CORRECTLY analyze risk in private equity corporate deals based on the revitalization of bankrupt brands. 

Even wall st guys miss  these things  right .  I know anytime I have gotten away from my core (RE) its not ended well for me..