Important Notice
Please read this document carefully before investing. Investing in Syndicate Partners, LLC involves substantial risk of loss. Past performance is not indicative of future results. Not FDIC insured. Not bank guaranteed. May lose value.
This disclosure document is provided for informational purposes only and is not a complete description of all risks associated with an investment in Syndicate Partners, LLC. Prospective investors should carefully review the Private Placement Memorandum (PPM) and all related offering documents before making any investment decision.
General Investment Risk
An investment in Syndicate Partners, LLC carries significant risk, including the risk of total loss of invested capital. The fund trades commodity futures contracts, which are inherently speculative and volatile instruments. The value of your investment can go down as well as up.
The fund's performance in prior years is not a guarantee or reliable indicator of future performance. Market conditions, trading strategies, and the skill of the fund's managers may all change over time.
Commodity Futures Trading Risks
The fund's primary investment strategy involves trading commodity futures contracts, which carry specific risks including:
- Leverage risk: Futures contracts are leveraged instruments. A relatively small market movement can result in a proportionally much larger gain or loss relative to the amount of funds deposited as margin.
- Market risk: Commodity prices are influenced by numerous unpredictable factors including weather, geopolitical events, supply and demand dynamics, government policies, and global economic conditions.
- Liquidity risk: While major commodity futures markets are generally liquid, there may be circumstances — such as limit moves or periods of extreme market stress — where it becomes difficult to exit positions at desired prices.
- Counterparty risk: Trading through regulated futures exchanges reduces but does not eliminate counterparty risk.
- Algorithm risk: The fund employs quantitative and algorithmic trading strategies that may not perform as expected in all market conditions.
Return Cap Structure Risk
Investors in Syndicate Partners, LLC receive a return capped at 2% per month. In months where the fund's gross return exceeds 2%, the investor receives exactly 2% and the fund retains the excess. This structure means:
- Investors do not fully participate in exceptionally strong months
- In months where the fund earns less than 2%, investors receive only the actual fund return
- In months where the fund experiences a negative return, investors share in that loss
The annual investor returns displayed on our website reflect the compounded monthly return actually received by investors under this cap structure, not the fund's gross performance.
Illiquidity and Lockup Risk
Investments in Syndicate Partners, LLC are subject to a six-month initial lockup period during which redemptions are not permitted. After the lockup period, monthly liquidity is available subject to the fund's redemption procedures. There is no guarantee that redemption requests will be processed without delay in all market conditions.
Interests in the fund are not publicly traded and there is no established secondary market for the sale or transfer of interests. Investors should be prepared to hold their investment for an extended period.
Regulatory and Legal Risk
The fund operates under applicable federal and state securities laws and commodity trading regulations. Changes in laws, regulations, or regulatory interpretations could adversely affect the fund's operations, strategy, or investor returns. The fund may be subject to examination by regulatory authorities including the SEC and CFTC.
Tax Risk
The fund trades regulated futures contracts that are currently subject to Section 1256 of the Internal Revenue Code, providing a 60/40 blended long-term and short-term capital gains treatment. Tax laws are subject to change. There is no guarantee that the current favorable tax treatment will be maintained in future tax years.
Investors are strongly encouraged to consult with a qualified tax advisor regarding the tax consequences of investing in the fund prior to making an investment decision. Tax treatment varies by individual circumstances.
Performance Data Disclosure
Performance data presented on the Syndicate Partners website represents:
- Client returns: The compounded monthly returns actually received by investors under the 2% monthly cap structure
- Fund gross returns: The total fund performance before application of the investor cap
All annual return figures are pending final third-party CPA verification. Please refer to official fund statements and audited records for verified performance data. Past performance is not indicative of future results.
No Guarantee of Returns
There is no guarantee that the fund will achieve its target return of up to 2% per month. The fund's ability to achieve this target depends on numerous factors including market conditions, trading performance, and risk management effectiveness — all of which may vary significantly from period to period.
Syndicate Partners, LLC is not a bank. Your investment is not a deposit and is not insured by the FDIC, SIPC, or any other government agency. You may lose some or all of your invested capital.
Contact & Questions
If you have questions about these disclosures, the fund's risk factors, or any other aspect of your investment, please contact us at admin@syndicatepartners.co or reach out to Garrett Adams at garrett@syndicatepartners.co.
Prospective investors are encouraged to consult with their own legal, financial, and tax advisors before making any investment decision.