Frequently Asked Questions about Investment with GardenStar Group
1. Who are your investors?
Our potential investors are High Net-Worth Individuals (HNWI), family offices, and institutional investors.
2. What’s your minimum committed capital?
$100K, called over a period of 12-24 months, depending on project.
3. What’s the difference between committed capital and called capital?
Committed capital is the total amount that you agree to contribute to the capital. Called capital is the amount of capital that an investor transfers to the fund each time.
4. How and when do you call capital?
We will call capital quarterly over the call period and give our Limited Partners one to two weeks advanced notice. Typically, that equates to 50% in the first call, and 50% for the remaining call period.
5. What does preferred return mean?
Until you receive your principal and 8.0% compounded return annually on called capital, the management team will not receive a performance fee of 20.0%.
6. Will there be cash distributions prior to exit?
Very likely. The distribution amount may count towards a call.
7. What does the fund term 5+2 years mean?
The fund is designed to exit at year 5 with the optionality for the General Partner to extend by two years.
8. How do you charge the fund management fee?
The fund management fee is calculated based on called capital, NOT committed capital.
9. What will happen if I commit but cannot come up with enough capital when called?
The fund will have to resort to loan providers for the missing amount, and you will be billed for the loan costs.
10. May I take out my money early?
We hope that you budget to keep your money in for a minimum of 3 years. After 3 years, if you want to take your money, we will try our best to find a replacement for you.
11. What are the next steps?
For interested investors, please contact us and we will get back to you with more information about the project details and the investment process.