FAQ's
Pre-Partnership
How can I determine if I am a good fit for investing with Embel Management?
Our selection process emphasizes key values that we seek in our long-term partners. We look for individuals and organizations that share our goals and core values.
How long does it typically take to join the investment fund?
The timing to join our investment funds depends on the specific fund you are interested in. Our Short-Term Flexible Fund is available for investment with a minimum lock-up period of 3 months. Once the lock-up period is completed, you can provide a 1-month notice to receive your funds. The Embel Develop Fund has a lock-up period of 6 months, and if you wish to redeem your investment, a 90-day notice is required. The Deal-Based Fund is only accessible when there is a specific investment opportunity, and the lock-up period aligns with the duration of the deal.
Is there a waitlist for becoming an investor with Embel Management?
We do not maintain a formal waitlist for potential investors. Factors we consider include alignment with our core values, available capital, duration of engagement as a potential investor, and industry expertise.
What is the minimum investment amount required?
The minimum investment for both debt and equity offerings at Embel Management is set at $50,000. We prioritize investments of at least this amount.
How is an accredited investor defined?
An accredited investor is an individual who has a net worth of at least $1,000,000 (excluding their primary residence’s value) or has had an annual income of at least $200,000 for the past two years (or $300,000 combined income if married), with the expectation of earning a similar amount in the following year. If you are considering investing through an entity, please consult the SEC’s website for further clarification.
Is being an accredited investor a requirement to invest with Embel Management?
Yes, to invest in the Embel’s Fund, individuals must meet the definition of an accredited investor as outlined in Securities and Exchange Commission Rule 501(a) of Regulation D (17 CFR 230.501(a)) under the Securities Act. We will request specific statements and information to verify your accredited investor status.
Can I invest using an IRA or other retirement account?
We do accept IRA funds on a limited basis. However, please note that retirement accounts cannot exceed 25% of our total investor capital.
Can I use 1031 Exchange funds to invest in the Embel Fund?
No, the Embel Fund is not designed to receive 1031 proceeds. Our fund operates as an open-ended, evergreen fund where investors acquire membership units, which do not fulfill the like-kind criteria required by the IRS for deferring capital gains taxes.
How should I interpret the average returns stated in your quarterly report?
The average returns disclosed in our quarterly reports represent the overall average returns for all investors in the fund. While each unit receives the same distribution, the purchase price of units may vary among investors. The disclosed average tends to reflect the lower end of the price range since higher-priced units have been acquired over the years.
Onboarding
When should I expect to complete the onboarding documentation?
The onboarding documentation and funds transfer process commence once there is a high level of confidence in project completion. When the investment is ready to proceed, the required documents will be sent via DocuSign for your signature.
What investment options are available to me?
Embel Management focuses solely on debt-based investment options. We offer three distinct investment funds: the Short-Term Flexible Fund, the Embel Develop Fund, and the Deal-Based Fund. All our funds are debt-based, meaning they do not involve equity investments. The Short-Term Flexible Fund allows for a minimum lock-up period of 3 months, followed by a 1-month notice to receive funds. The Embel Develop Fund has a lock-up period of 6 months, with a 90-day notice for redemption. The Deal-Based Fund’s lock-up period corresponds to the timeline of the specific investment opportunity.
How is the term and rate of my temporary note determined?
The term and rate of the note are determined by the supply and demand of capital, as well as the amount of your investment in the current round of funding.
How can I make changes to my account?
You can make changes to your account, such as distribution preference changes, updating contact or payment information, redemptions, and transfers, by contacting us via email at [email protected].
When do my funds begin earning a return?
Typically, funds start earning interest once they are deployed, which usually occurs 2-4 weeks before the closing of a transaction in the fund.
Why is my investment not immediately purchasing units directly into the fund?
The Net Asset Value (NAV) of units is determined at the beginning of each quarter. Unit transactions (purchases or redemptions) can only take place during that time.
What are my options for receiving distributions?
Distributions can be received in cash or reinvested into additional membership units. You can change your reinvestment election up to two times per year.
Is there a lockup period for my investment?
Yes, lock-up periods apply to our investment funds. In the Short-Term Flexible Fund, funds are locked up for a minimum of 3 months, and after that period, you can provide a 1-month notice to receive your funds. The Embel Develop Fund has a lock-up period of 6 months, and if you decide to redeem your investment, a 90-day notice is required. The Deal-Based Fund’s lock-up period is tied to the duration of the specific investment opportunity.
How can I request a redemption of my investment?
Redemption requests require a notice period specific the fund invested within. Funds will be redeemed at the beginning of the quarter following this notice period.
Do I need to complete additional paperwork after my temporary note matures?
No, all the necessary information will be documented in the initial subscription documents completed during the onboarding process. Investors will be notified when their investment has converted to equity.
Ongoing Partnership
How frequently are distributions paid out?
Equity distributions are typically paid out by the end of the month following the quarter’s end. Debt distributions are paid out no later than 15 days after the quarter ends, usually within a week. Distributions can be received through check, wire transfer, or ACH.
How can I check my account balance within the fund?
Account statements, provided by our third-party administrator, Verivest, are sent out around the same time as distributions each quarter. Debt statements are sent within the first 15 days after the quarter ends, while equity statements are sent by the end of the month following the quarter’s end.
What information will I find in my quarterly statements?
Quarterly statements include the beginning-of-quarter investment amount, earnings for the quarter, distributions or reinvestments, and the ending balance. Equity statements also feature a roll-forward of your fund units, the balance of funds awaiting deployment, and the amount of newly subscribed funds at the start of the subsequent quarter.
How can I add to my investment?
If you wish to increase your position, you can express your interest by updating your investor survey submission. All new investments follow the same procedures, regardless of your status within the fund.
What reports and updates will I receive as an investor?
We provide quarterly reports electronically at the end of the month following the quarter’s end. These reports include a management letter, performance details for the quarter, and information on new acquisitions, asset dispositions, fund returns, etc. Additionally, the Manager holds quarterly conference calls, announced via email, approximately 6-8 weeks after each quarter’s end.
What tax forms will I receive and when should I expect to receive them?
As our funds are exclusively debt-based, investors can expect to receive a Form 1099-Int from Embel Management. This form, will be issued no later than January 31st each year. It applies to all debt investors, including those participating in the Short-Term Flexible Fund, Embel Develop Fund, and the Deal-Based Fund. Please note that since these funds do not involve equity investments, there is no K-1 form for equity investors.
Is there an annual investor meeting I can attend?
When feasible, we organize an annual investor meeting in the Boise, Idaho area. The meeting, held in late summer or early fall, can be attended either in person or online. It is open to all current and prospective investors, and detailed information regarding logistics and activities is provided well in advance of the meeting.
How can I make changes to my account?
For any changes to your account, including distribution preferences, contact information updates, payment information updates, redemptions, or transfers, please feel free to contact us via email at [email protected].
What is the difference between GAAP and NAV listed on my equity quarterly statement?
GAAP represents all cash invested and reinvested by the investor, while NAV includes everything in GAAP along with the investor’s share of unrealized gains from asset dispositions.
