Risk
Risk factors
Risk register
Total loss
Investors in any future vehicle could lose their entire investment.
Liquidity
Private fund interests would be illiquid; no market exists and redemptions may be unavailable.
Valuation
Small private businesses are hard to value; SDE add-backs can overstate earnings.
Leverage
Debt magnifies losses; covenants and personal guarantees may apply.
Counterparty
Sellers, lenders, brokers, and franchisors may fail to perform.
Execution
No track record. Deals may not close; integrations may fail; key staff may leave.
Regulation
Healthcare, childcare, deathcare, and staffing are licensed sectors; securities law constrains fundraising.
Related-party
Dealings with the Acquisition Fund, QLA Benefits, or FamMark may not be arm's length.
Conflicts of interest
Sponsors may have competing interests in allocation, fees, and timing.
Concentration
A narrow geographic corridor and small number of holdings concentrate risk.
Key person
Outcomes depend on a small number of individuals.
Stale data
Historical broker leads are not reverified and may be unavailable or inaccurate.