Investor Presentaiton
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FlowStone Fund Structure
CONFIDENTIAL
32
Investment Objective
Investment Timing
Investment Structure
Regulatory
Oversight
Tax and
Reporting
Distributions
Redemption
Option (1)
FlowStone Fund
Traditional Private Equity Fund of Funds
The Fund's investment objective is to generate appropriate The Fund's investment objective is to generate appropriate
risk-adjusted long-term returns by assembling a diversified risk-adjusted long-term returns by assembling a diversified
portfolio of private equity investments through secondary portfolio of private equity investments through primary
acquisition, primary commitments, and co-investments commitments
Quarterly unit purchases at current NAV allow for investors
to participate when it meets their timing, not only when the
fund manager is raising capital
Investors buy into an existing portfolio, enjoying immediate
exposure. Proceeds are reinvested in the vehicle, increasing
the potential for continuous capital appreciation and
compounded growth
Registered investment companies are designed specifically
for individual investors and are subject to strict regulation
Form 1099 tax reporting
Quarterly filings and investor reporting
Registered Investment Companies must distribute income,
annually. Distributions are automatically reinvested in the
fund unless the investor opts out of the reinvestment plan
Redemption feature allows investors to redeem their units at
NAV quarterly (subject to a fund-level cap and/or board
approval)
Fund managers typically raise new capital every two to four
years, limiting the investor's ability to invest only when
managers are actively raising capital
Investments are made over time, often several years, so
exposure increases gradually. "Blind Pool Risk" exists
because there is no visibility on the assets to be acquired
Limited partnership vehicles are designed for institutional
investors and are subject to fewer regulatory obligations
regarding valuations and reporting. This may be less suitable
for individual investors
Limited partnerships issue K-1s, which are seldom available
by the April 15 tax filing deadline, requiring an extension with
the IRS
Traditional private equity limited partnerships distribute
capital and income at the sole discretion of the manager.
Funds often make no distributions for the first several years
of a fund's life
Private equity limited partnerships provide no flexibility for
the investor to manage liquidity. Investors are locked up
until the manager makes its final distribution
(1) The Fund is not a liquid investment. No Shareholder will have the right to require the Fund to redeem its Shares. The Fund from time to time may offer to repurchase
Shares pursuant to written tenders by the Shareholders
Note: This presentation is for discussion purposes only and is not intended to be an offer to sell or the solicitation of an offer to buy any securities. In the event securities were
offered, this presentation would be superseded and replaced in its entirety by a preliminary or final term sheet, prospectus, offering agreement or memorandum, partnership
agreement and/or other supplemental and controlling documents for a specific offer. In the event of any inconsistency between the information presented herein and that
information presented in a preliminary or final term sheet, prospectus, offering agreement or memorandum, partnership agreement and/or other supplemental and
controlling document, the latter shall govern in all respects.
There is no guarantee that the Fund will achieve its investment objective.View entire presentation