About AlphaX
Total Asset Under Management
$200M+
200+
Units In the Pipeline
190+ SFH
Long-Term Holding
360+
Completed Projects
Westmont
Fully Subscribed
Location: Campbell, Near Netflix HQ
Minimum Amount: $100,000
Maximum Investment: $6,500,000
Expected Project Exit: 2024 Q3
Estimated Investor Returns:
Debt Investment fixed 10% /p.a
Accredited investors only
Manager; AlphaX RE Capital, Inc
Note: [This item is a 506(c)* and the investor needs to be a QIB*] *506(c): Rule 506(c) permits issuers to broadly solicit and generally advertise an offering, provided that: all purchasers in the offering are accredited investors, the issuer takes reasonable steps to verify purchasers’ accredited investor status, and certain other conditions in Regulation D are satisfied. Past performance is not indicative of future returns or Project results. Forward looking statements are not statements of historical fact and reflect Manager’s views and assumptions as of the date of the Presentation regarding future events and performance. All forward-looking statements address matters that involve risks and uncertainties.
Cupertino
Equity Fully Subscribed
Debt investment opportunity Available Q2 2024
Location: near Apple headquarters, top Monta Vista school district
Minimum Amount: $100,000
Maximum Investment: $24,000,000
Expected Project Exit: 2025 Q4
Estimated Investor Returns:
Debt investment: fixed 10%/ P.A
Accredited investors only
Manager; AlphaX RE Capital, Inc
Note: [This item is a 506(c)* and the investor needs to be a QIB*] *506(c): Rule 506(c) permits issuers to broadly solicit and generally advertise an offering, provided that: all purchasers in the offering are accredited investors, the issuer takes reasonable steps to verify purchasers’ accredited investor status, and certain other conditions in Regulation D are satisfied. Past performance is not indicative of future returns or Project results. Forward looking statements are not statements of historical fact and reflect Manager’s views and assumptions as of the date of the Presentation regarding future events and performance. All forward-looking statements address matters that involve risks and uncertainties.
Investment Opportunities
Accredited investors only
AlphaX Debt Fund I
Target Fund Size
$200 M
Target Gross Return
12.7%
Target Investor Return
9.9%
Preferred Return
8%
Distribution
Quarterly
Manager: Rate DNA Capital, LLC
The Fund intends to lend to its Affiliates. The concentration of loans that are to Affiliates may be more than a majority of the portfolio of loans. The Fund acknowledges these transactions are not arms-length and presents a potential conflict of interest. For these reasons the Manager will use its best efforts to ensure that it acts in the best interest of the Fund in credit decisions, underwriting, default and foreclosure.
Note: (1) Gross IRR (for this purpose) is an annualized return and on a pre-tax basis (at the investor level) and does not reflect the deduction of management fees, performance compensation or operating and administrative expenses. Targets are not guarantees of future performance, are presented for informational purposes only, and there is no assurance that they will be achieved. While the Manager believes all targets to be reasonable and sound under the current circumstances, they are based on numerous assumptions and actual returns may differ materially. Past performance is no guarantee of future results. (2) Represents annualized net return on initial capital after the deduction of management fee and performance compensation, but it does not reflect the deduction of operating and administrative expenses. (3) Distributions of the net profits are not a guaranteed distribution and are subject to the cash availability of the fund. The manager and the fund make no guarantees, assurances, or commitments to the distribution of any returns. The manager will only make distributions to the extent cash is available, in the sole and absolute discretion of the manager, and the extent that any distributions will not impact the continuing operations of the fund. (4) Subject to the conditions and limitations set forth in the respective Limited Liability Company Operating Agreements. (5) Withdrawal requests are processed on the 1st and 15th day of each month upon the Manager's approval. Approval decision to be made within 45 days of request. Fund must have available cash flow to satisfy the requested withdrawal and Manager may take into consideration other factors such as the Fund’s financial condition and prospective transactions in assets. Withdrawal is at a first come first serve basis with quarterly and annual withdrawal amount limitation and subject to a processing fee
Stay Connected
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The information on this website is for informational purposes only and does not constitute an offering of securities. Any investment decisions should be based on specific offering documents provided by the issuer. Investing in securities involves risks, and individuals should consult with their own financial advisors before making any investment decisions. Past performance is not indicative of future results. The website owner and affiliated parties are not liable for any losses arising from the use of the information provided.
Conflict with Related Programs
The Manager and its managers, principals, directors, officers, and/or Affiliates may cause the Fund to join with other entities organized by the Manager for similar purposes as partners, joint venturers, or co-owners under some form of ownership in certain loans or in the ownership of repossessed real property. The interests of the Fund and those of such other entities may conflict, and the Fund controlling or influencing all such entities may not be able to resolve such conflicts in a manner that serves the best interests of the Fund.
Risk Factors
Investment Risk
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Credit Risk: This encompasses the likelihood that the issuer may default on interest or principal payments. Factors such as the issuer's credit rating, financial health, and track record of meeting debt obligations are critical considerations. Lower-rated issuers typically carry higher credit risk.
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Interest Rate Risk: Debt funds are sensitive to changes in interest rates. If interest rates rise, the value of existing bonds with lower rates decreases, leading to capital losses for investors. This risk is especially relevant for fixed-rate bonds with longer maturities.
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Reinvestment Risk: When debt securities held by the fund mature or are redeemed, the proceeds must be reinvested. Reinvestment risk arises when the prevailing interest rates are lower than the original yield of the maturing investments, potentially reducing the fund's overall returns.
Business Risks
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Industry Dynamics: Issuers may face specific risks related to their industry, such as regulatory changes, technological disruptions, or shifts in consumer preferences. These factors can impact the issuer's ability to generate sufficient cash flows to service its debt.
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Financial Health: The issuer's financial stability, liquidity position, and leverage levels are crucial factors in assessing business risks. High debt levels, inadequate cash reserves, or poor profitability could increase the likelihood of default.
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Management Quality: Competent and ethical management is vital for navigating challenges and seizing opportunities. Poor strategic decisions, governance issues, or management missteps could adversely affect the issuer's ability to honor its debt obligations.
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Market Positioning and Competition: Issuers operating in highly competitive markets may face pricing pressures, margin compression, or market share erosion. A weak competitive position could impair the issuer's revenue generation and cash flow stability.
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Regulatory and Legal Risks: Compliance with applicable regulations and legal obligations is essential for business continuity. Legal disputes, regulatory fines, or changes in legislation can disrupt operations and financial performance.
By assessing both investment risk and business risks associated with the issuer, debt fund investors can make informed decisions to manage their portfolio's risk exposure effectively. Diversification across issuers, industries, and regions can help mitigate specific risks while maximizing potential returns.