Rising Star Investments

FAQs

You are purchasing shares of a Limited Partnership. Much like investing in the stock market, you partner with us by acquiring shares in the partnership. To determine your ownership in the LP, divide your investment amount into the total offering amount. For example, a $150,000 investment would result in 3% ownership in the LP if the total offering amount is $5,000,000.

No, the capital we contribute will be treated the same as all other investor-members.

We will send you a Private Placement Memorandum (PPM) and our Subscription Documents. You will sign the PPM and Subscription Docs, then wire over the money. We use Docusign for e-signatures to keep this convenient. Wiring instructions will also be provided to you in that PPM.

This is a projected 10 year investment and you should be comfortable with your principal investment being invested for that time. During the duration of the ten years you can expect quarterly dividends from the cash flows. After ten years the plan is to sell the portfolio,which as an investor and assuming appreciation as well as sales based on cap rates, you will receive the return of your invested capital plus the profits from the sale.

If a property is sold during the projected 10 year hold period, the profits, if any, are used by the Partnership to make additional investments. If it’s at the end of the 10 year period, the principal and profits, if any, are distributed back to the investor.

The fund is a ten year hold. We do not guarantee early liquidity, but we can explore the following options:  1) We can purchase your ownership, or 2) we can assist in a match-making effort to find someone interested in purchasing your ownership.

No. Investors retain 100% ownership of the capital they contribute.

Investors should be comfortable having their investment held for 10 years. Our goal is to own the purchased companies long term in order to maximize their growth and their value at time of sale. It is in the best interest of everyone that we sell each investment at the right time. This event may occur sooner or later depending on market conditions, and performance factors.

We distribute profit to investors quarterly. This means that you will receive profit from your investment, if any, deposited directly into your account during the months of February, May, August, & November.

Our funds are set up as GP/LP agreements. All investors are Limited Partners. The operating & investment agreements describe the relationship between investor members and the manager. For the most part, the manager retains the right to make all decisions.



No, the investor’s biggest risk is the loss of their investment capital. The partnership is facilitated by a limited liability entity & the manager is the responsible party for the acts of the company.

In the worst-case scenario, investors could lose some or all of their invested capital. While we can’t imagine these scenarios occurring, it’s important for our investors to know all of the risks associated with the investment.

There are three returns that we provide projections for; the Equity Multiple (EM), the Average Annual Return (AAR), and the Internal Rate of Return (IRR). The AAR is a percentage that represents a fund’s historical average return, usually stated over 3, 5, and 10 years. The EM explains how the investment multiplies over the years. It helps measure the total return an investor gets from their investment. The IRR takes into account the Pref income PLUS the profit from selling the investments AND factors in time.

You are purchasing ownership in an entity that owns operating companies and potentially commercial real estate. You are secured by the legal rights afforded to you in the operating agreement of the company. This includes your legal right to a share of the profits that the property generates, and also your legal right to a return of your invested capital when the property is sold. We use an LP to own the investments for structure & liability reasons.

You will receive a Schedule K1 at the conclusion of each tax year. We intend to send this document to you by the end of March each year at the latest.

Yes. One of the most popular ways individuals invest using their retirement funds is by using a Self-Directed IRA. Many custodians exist and we work with all of them.



We leave it up to you to set a sales price. We retain the first right of refusal to purchase any ownership that is offered for sale, and our company also retains the ability to approve, match or deny any sale of ownership