Fairway America Fund VII LP

Nationwide
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Preferred Return

8%

Targeted Hold Period

2-year lockup period with redemption abilities afterward

Minimum Investment

$5,000,000 – Class A
$1,000,000 – Class B
$100,000 – Class C

Investor Capital Managed

$34,323,537
(as of 10/31/2020)

Preferred Return

8%

Targeted Hold Period

2-year lockup period with redemption abilities afterward

Minimum Investment

$5,000,000 – Class A
$1,000,000 – Class B
$250,000 – Class C

Current AUM

$33,218,381
(as of 5/31/2020)

Additional

Information*

Asset Type:
Diversified

Strategy Type:
Opportunistic Value-Add Income Assets

Geographic Area: 

Nationwide

Fund Term:
Evergreen – No end date

Redemption Abilities:
After 2 years

Management Fee:
1.5% on total AUM

Capital Raise Fee:
1.25% on capital raised

Note Options:
1, 2, or 3 years, rates vary

GP-Carried Interest (above Pref): 

20% for Class A Members
30% for Class B Members
40% for Class C Members

Fund-Level Debt:
Approx. 25%
(as of 11/1/19)

*Disclaimer: This offering is speculative and involves substantial risks. Consider the risks outlined in the formal offering documents, including the Private Placement Memorandum before investing. Risks include, but are not limited to illiquidity, lack of diversification, complete loss of capital, default risk, and capital call risk. Investments may not achieve their objective. 

Middle market real estate sponsors – especially those with robust origination capacity – have great demand for reliable capital. Fairway America created Fund VII both to facilitate capital flow to its middle market sponsor network and – to the benefit of our investors – capitalize on this highly fragmented but opportunity-laden space.

The investment mandate allows the Fund to invest in a wide variety of middle market real estate asset types such as direct investment in real property, a real estate secured loan or an investment in another real estate fund. We believe Fund VII’s opportunistic investment strategy will allow the Fund to perform well through various market cycles. 

In keeping with our “value investing” mindset, the Fund’s goal is to only invest in middle market opportunities that we believe provide the possibility of attractive risk-adjusted returns while maintaining a strong margin of safety.

Keep in mind there are risks to investing in any of the offerings presented by Fairway America, as outlined in the specific offering materials. These risks include illiquidity and loss of invested capital. Please review those materials in detail before making any investment.

Why Consider Investing in Fairway America Fund VII?

We believe the combination of the list of characteristics to the right makes Fund VII a compelling investment opportunity for the astute investor who wants exposure to this alternative investment class but who does not have the time, expertise, or inclination to actively manage the risks associated with middle market real estate investments. 

 

Fund VII Characteristics

Diversification across several categories, including:

    • Diversification across several categories, including:
      • Geographic – the funds have investments in 20+ states
      • Assets – there are 50+ assets in the funds consisting of multifamily, self-storage, retail, office, industrial, and hospitality
      • Investments – the funds invest into ownership (equity) of assets, real estate secured loans (debt), and sometimes into other real estate funds
      • Income types – the funds produce both ordinary income and capital gains that flow to investors
    • Scheduled quarterly distributions to investors
    • Redemption features allow investors to request redemption after a lock-up period
    • Member and noteholder options allow investors to elect different risk and return profiles
    • Takes in new money on an ongoing basis so you do not have to wait for it to work

    • Offers income that is distributed and appreciation that is reflected in a quarterly share price
    • Broad discretionary mandate should allow for opportunistic maneuverability during all market conditions

 

Why Consider Investing in Fairway America Fund VII?

We believe the combination of the list of characteristics to the right makes Fund VII a compelling investment opportunity for the astute investor who wants exposure to this alternative investment class but who does not have the time, expertise, or inclination to actively manage the risks associated with middle market real estate investments. 

 

Fund VII Characteristics

Diversification across several categories, including:

    • Diversification across several categories, including:
      • Geographic – the funds have investments in 20+ states
      • Assets – there are 50+ assets in the funds consisting of multifamily, self-storage, retail, office, industrial, and hospitality
      • Investments – the funds invest into ownership (equity) of assets, real estate secured loans (debt), and sometimes into other real estate funds
      • Income types – the funds produce both ordinary income and capital gains that flow to investors
    • Scheduled quarterly distributions to investors
    • Redemption features allow investors to request redemption after a lock-up period
    • Member and noteholder options allow investors to elect different risk and return profiles
    • Takes in new money on an ongoing basis so you do not have to wait for it to work

    • Offers income that is distributed and appreciation that is reflected in a quarterly share price
    • Broad discretionary mandate should allow for opportunistic maneuverability during all market conditions

 

Comparison of Fund Offering Details

The primary difference between Fund VII and Fund VIIQP is that Fund VIIQP is only available to qualified purchasers. The two funds have very similar investment mandates and strategies. Both funds are managed by Fairway America Management Group II (FAMG II) and receive investment advice from Fairway America Investment Advisors (FAIA). Any investment opportunities for one fund will be considered opportunities for both, and each fund will participate in those opportunities based on the amount of capital available to each. Where both funds have capital available to invest, FAMG II anticipates that each fund will invest a pro rata amount in the opportunity, based on each fund’s respective AUM balance at the time.

Fund VII 

Established: 2014

Asset Type: Open end private, diversified growth & income fund

Geographic Area: Nationwide

Equity Redemption Period: 3 years

AUM: $31.8M (as of 11/7/2019)

Management Fee: 1.5%

Preferred Return: 8.0%

Profit Split: Class A 80/20 Investor/Manager, Class B 70/30, Class C 60/40 (all after Pref)

Fund VIIQP 

Established: 2017

Asset Type: Open-end private, diversified growth & income fund

Geographic Area: Nationwide

Equity Redemption Period: 3 years

AUM: $49.9M (as of 11/7/2019)

Management Fee: 1.5%

Preferred Return: 8.0%

Profit Split: Class A 80/20 Investor/Manager, Class B 70/30, Class C 60/40 (all after Pref)

Securities offered through North Capital Private Securities, member FINRA/SIPC. North Capital has been appointed as a placement agent for the offering of these securities and will receive transaction fees based upon the successful placement of equity securities for the issuer. NCPS, collectively with its associated persons, shall receive a transaction fee of no less than 0.20% and no more than 1.45% of capital raised.

 
 

Investment Offering Documents & Reports

Offering-Related Documents

Note Holder Subscription Booklet – Click to Download

LP Subscription Booklet – Click to Download

Private Placement Memorandum – Click to Download

Compliance Documents

Fairway Privacy Policy & Notice – Click to Download

Operations & Controls Procedures – Click to Download

2021 Fairway Disclosure Brochure – Click to Download

Fairway Proxy Voting-Class Action Policy Notice – Click to Download

2021 Fairway master Disclosure Letter – Click to Download

Investment Risks

This offering is speculative and involves substantial risks. In addition to the general risks of investing in a private real estate offering, which include illiquidity, lack of diversification, complete loss of capital, default risk, and the risk that the Fund’s investments may not achieve their objectives, some of the more significant risks associated with this investment include the following:

Investment Selection

The success of the Fund’s investment strategy will depend on the management, skill, and acumen of not only the Fund’s GP, but also the Sponsors’ management of the various opportunities in which the Fund invests. Investors will have no opportunity to select or evaluate in advance any of the Fund’s investments or strategies.

Limited Control Over Sponsors

The Fund itself will have limited control over and insight into the activities of the Sponsors with which it invests. The Sponsors may make poor investment decisions, actively defraud the Fund and other investors, charge fees that reduce the benefits of a particular investment, and take any number of other actions that could damage the value of the Fund’s investments. The Fund’s ability to accurately evaluate and monitor Sponsors’ activities is necessarily limited by the nature of investing in deals and funds managed by others. The Fund may also have a limited ability to redeem or otherwise recover its investments, resulting in a loss of some or all of the Fund’s investments.

Determination of Unit Prices for the Fund and the Target Funds

The purchase price of the Units issued by the Fund and the price of equity interests issued by the Target Funds into which the Fund may invest have been determined primarily by the capital needs of the Fund or the Target Funds, and may bear no relationship to any established criteria of value such as book value or earnings per Unit or any combination thereof. Further, the Unit Prices are not necessarily based on past earnings nor do they necessarily reflect current market value for the assets proposed to be acquired. The Unit Prices have not been determined at arm’s length and no valuation or appraisal of the potential business has been prepared. In addition, as a result of the subscription process described elsewhere in the PPM, the actual Unit Price an Investor will pay for each Unit will usually not be known at the time the Investor commits to make an investment. Thus, each Investor will be committing to make an investment in an asset, the price of which is unknown at the time of the commitment to make such a purchase, and the actual price paid for Units may be higher than the Investor anticipates.

Availability of and Ability to Acquire Suitable Investments

While the GP believes that many attractive investments of the type in which the Fund may invest are currently available and can be identified, there can be no assurance that such investments will continue to be available, or that available investments will meet the Fund’s investment criteria. Furthermore, the Fund may be unable to find a sufficient number of attractive investment opportunities to meet its investment objectives.

This description of risks is not intended to be comprehensive. Please consider the more complete description of risks outlined in the Fund’s formal offering documents, including the Private Placement Memorandum, before investing.