Invest in Private Credit

Risks:

The Alternative investments held in the fund highly speculative and involve a great degree of risk and are not suitable for all investors. Full loss of principal is possible. The fund may often engage in the use of leverage and other speculative investment practices, such as short sales, options, derivatives, futures and illiquid investments that may increase the risk of investment loss. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. The fund’s high fees and expenses will offset the fund’s total return. There are restrictions on transferring interests in the fund. There is no secondary market for the investor’s interest in the fund and none is expected to develop. An investment should only be considered by investors who can bear illiquidity risk for an indefinite period of time and be able to withstand a total loss of the amount invested. The fund is not required to provide investors with periodic pricing or valuation, and often charges high fees. Private funds are not subject to the same regulatory requirements as registered funds. Investing in private funds may also involve complex tax structures and delays in distributing important tax information. Speak to your Financial Adviser before investing. The fund does not represent a complete investment program. Investors in fund of funds will incur asset-based fees and expenses at the fund level and indirect fees, expenses and asset-based compensation of investment funds in which these funds invest. The Fund is exclusively for accredited investors or institutional investors.

Investments, in private equity funds, are subject to investment, tax, regulatory, market, macro-economic and other risks, including loss of the principal amount invested. Investment denominated in a foreign currency are subject to factors including but not limited to changes in exchange rates that may have an adverse effect on the value of the investment. Past performance as well as any projection or forecast used or discussed in these materials are not indicative of future or likely performance of any investment product. Statements may be forward looking and are not intended as specific investment advice or guarantees of future performance. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such statements. There is no assurance the fund’s investment objectives will be met.

The fact that Senior secured loans are “secured” and the borrower’s repayment is obligated, does not guarantee the borrowed amount will be repaid in part or whole. The Senior secured loans provided may be unable to repay their debt.

Distributions may be paid from sources other than revenue produced by the portfolio, such as investor proceeds and financing which is not sustainable and can reduce investor returns.

General interest rate fluctuations may have a substantial negative impact on the debt investments which can have an adverse impact on returns. During volatile times, floating rate debt instruments tend to rise; however, there may be a significant number of borrowers of such floating rate debt instruments that may be unable or unwilling to repay their loan obligations.

Prequin data sets do not reflect all private equity, rather it is a subset of PE investments. There is no index or data set that represents the entire PE market. The Prequin information is not transparent and cannot be independently verified. The funds included in the private capital data shown report their performance voluntarily and therefore the data often reflects an under reporting of PE losses with a bias towards funds with track records of success.

The information contained in these materials is not intended to provide professional, investment, legal or tax advice and should not be relied upon in that regard. The contents of these materials are for general information only and are not provided with regard to your specific investment objectives, financial situation, tax exposure or particular needs. The contents hereof are not a recommendation of, or solicitation for, the subscription, purchase or sale of any security, including the fund(s) and/or investment products mentioned herein. Nothing contained herein should be used as the basis for making any specific investment, business or commercial decision. You should carefully read the final prospectus, offering memorandum, organizational agreement and/or other supplemental and controlling documents before making an investment decision regarding any particular security carefully before investing in any security.

The contents of these materials are subject to change and may be modified, deleted or replaced at any time in Cresset’s sole discretion. In particular, Cresset assumes no responsibility for, nor make any representations, endorsements, or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the contents of these materials for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will Cresset be liable for any loss or damage including, without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of these materials.

Footnotes:

1. Administrative Fee: 0.2% of NAV plus Fund level expenses (audit, tax, legal, etc.). Incentive Fee: Incentive fee of 10% on net profits, assessed quarterly and subject to a 6% hurdle.
2. Pitchbook 2021 Annual Interactive PE Lending League Table .
3. The Tax Efficiency Blocker Fund protects U.S. tax-exempt investors (e.g., IRAs, private foundations, certain pension funds) from incurring Unrelated Business Taxable Income (“UBTI”)
4. The senior position in the capital stack is in the event the asset has gone into liquidation or bankruptcy. These steps mitigate but do not eliminate repayment and default risk.

Disclosures:

The information contained herein will be superseded by, and is qualified in its entirety by reference to, the PPM, which contains information about the investment objective, terms and conditions of an investment in a fund and also contains tax information and risk disclosures that are important to any investment decision regarding that fund.

All right, title and interest in and to these materials are the sole and exclusive property of Cresset Capital Management, LLC, and its affiliates (collectively, “Cresset”).