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575 Lexington Avenue, 4th Floor
New York, New York 10022
Telephone: (212) 971-1314
Telecopier: (646) 350-0378
Mobile: (862) 485-6315
email:
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Darren K. Indyke, PLLC. Unauthorized use, disclosure or copying of this communication
or any pan thereof is strictly prohibited and may be unlawful. If you have received this
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Copyright of Darren K. Indyke, PLLC - © 2014 Darren K.
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Begin forwarded message:
It would be complicated to wait another month —= be only investor in the fund and only accomplish not getting
access to first loss.
We need the sub does in today.
Regarding everything else —lets sign whatever you have as a version at 4 pm today and have god faith understanding
that we will deal with it in coming days
Do whatever he is fully comfortable with today as long as we have full understanding that we then work on later
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PSJI
M]
I thought there has to be a 10% illiquid position threshold before we begin to evaluate the percentage increase
in illiquid positions. Let's just include provision to work together in good faith to develop specific criteria for
the Liquidity Agent to use in making an Illiquidity Determination. I have marked suggested changes from the
6-24-14 draft on the attached. I also sent your suggestion below to JE.
I will go through all the sub docs and make sure they are ready to be submitted, assuming I get your and JE's
approvals. Alternatively, JE said that if this has to wait another month, then fine.
575 Lexington Avenue, 4th Floor
New York, New York 10022
Telephone: (212) 971-1314
Telecopier: (646) 350-0378
Mobile: (862) 485-6315
email:
*******************************************************************************
***************
The information contained in this communication is confidential, may be attorney-client
privileged, and is intended only for the use of the addressee. It is the property of
Darren K. Indyke, PLLC. Unauthorized use, disclosure or copying of this communication
or any part thereof is strictly prohibited and may be unlawful. If you have received this
communication in error, please notify us immediately by return e-mail, and destroy this
communication and all copies thereof, including all attachments.
Copyright of Darren K. Indyke, PLLC - O 2014 Darren K.
Indyke, PLLC — All rights reserved.
On Jun 30, 2014, at 1:09 PM, Ari Glass <
wrote:
If we declare a liquidity event —(And the liquidity agent agrees)- it means that we are certifying a certain percentage of
our portfolio as illiquid.
2 types of illiquidity
First loss managers who have a locked up period for their capital. Even though this capital is highly unlikely (as in never
happened yet) to cost us trading M, the money is needed for margin.
The proportionate shares of locked up first loss capital would be one bucket of illiquid. —Jeffrey should have less
concerns on this bucket as its not really ongoing
risk (not zero but highly unlikely)
The second is real illiquid. In this case, if paying out a full redemption would increase the percentage the remaining
investors have in illiquid position by more than 10% (for example if the implicit portion of other LPs investment would go
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up by more than 10% -meaning if they had a 10 % illiquid position it would now go to 11% illiquid, this would be
considered to be substantial and any amount above that would be held back until those positions were liquidated. —in
this case. proposing only amounts in excess of the 10% change. So if you pull out $10m of an $80m fund and now 8
/70 is illiquid, then 11.43% is illiquid. Since that changed the illiquid percentage by more than 10% then the excess
(.43%) would be deemed illiquid and stuck in the fund until those position actually liquidate.
Of course if we declare a full fund liquidation then it changes everything. Then all investors get out pro rata and ill lave
my money stuck in fund as discussed until you are fully redeemed
An Glass
Boothbay Management
Managing Member
810 71h Ave
Suite 405
New York, NY 10019
(P)212432-2675
(c)917-757.1600
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