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FAQ

Is the fund an evergreen fund structure with promote structure of 20% over a ROC? In other words, there is no preference but investors will get their capital back and then all cash flows are splits 80% to LPs and 20% to GP into perpetuity.

The 80/20 split happens immediately. At the end of each month, we count the profits of the portfolio and distribute 80% to LPs and 20% to GPs

It looks like you prefer to buy the businesses all cash, no debt, and hold forever?

Our Subscription Agreement allows us to use debt, but we will likely not do it at all for Fund Alpha. We prefer buy and hold but will look at reasonable purchase offers. Whatever is best for our investors

Will all future investments go into this fund? I'm trying to understand if there is any sort of conflicts of interests that exists with different vehicles managed by the GP?

All future investments will go into the Fund. The only reason this would not be true is if XOXO Capital wanted to acquire something outside of the strategy for Fund Alpha

Management fee to GP will be 2% of revenue of the acquired companies as opposed to 2% of the committed capital?

Correct. This helps us avoid just trying to raise ever larger funds to create larger AUM fees.

Is the 10% distribution fee just like a 10% kicker assuming a sale, so in other words assuming LP’s had their capital back, GP would get 30% and LP 70% upon an exit?

It's just 10% of the sale price. In the case of a sale, 10% goes to the GP, 90% goes to the LPs. (Note that XOXO Capital is committed to own at least 10% of the fund, so we are well-aligned with LPs on deciding when/if to divest a company).

Any other fees to the GP besides the 2% of revenue, 20% LP Carry, and 10% kicker?

Nope. That's it.

I noticed you said you are targeting 20% cash returns to investors? Is the 20% Cash on Cash, i.e. if you put in $1, hope to get back 20 cents every year?Or you saying 20% IRR?

We are targeting 20% Cash on Cash. We will measure and report the IRR as well.

Is the goal to send out distributions monthly after the investment period?

Distributions happen immediately. As soon as we know the profits and the distribution calculations are made, our LPs (those who were in the Fund for the month) will get payments. Typically within the first week of the following month.

FAQ

The 80/20 split happens immediately. At the end of each month, we count the profits of the portfolio and distribute 80% to LPs and 20% to GPs

It looks like you prefer to buy the businesses all cash, no debt, and hold forever?

Our Subscription Agreement allows us to use debt, but we will likely not do it at all for Fund Alpha. We prefer buy and hold but will look at reasonable purchase offers. Whatever is best for our investors

Will all future investments go into this fund? I'm trying to understand if there is any sort of conflicts of interests that exists with different vehicles managed by the GP?

All future investments will go into the Fund. The only reason this would not be true is if XOXO Capital wanted to acquire something outside of the strategy for Fund Alpha

Management fee to GP will be 2% of revenue of the acquired companies as opposed to 2% of the committed capital?

Correct. This helps us avoid just trying to raise ever larger funds to create larger AUM fees.

Is the 10% distribution fee just like a 10% kicker assuming a sale, so in other words assuming LP’s had their capital back, GP would get 30% and LP 70% upon an exit?

It's just 10% of the sale price. In the case of a sale, 10% goes to the GP, 90% goes to the LPs. (Note that XOXO Capital is committed to own at least 10% of the fund, so we are well-aligned with LPs on deciding when/if to divest a company).

Any other fees to the GP besides the 2% of revenue, 20% LP Carry, and 10% kicker?

Nope. That's it.

I noticed you said you are targeting 20% cash returns to investors? Is the 20% Cash on Cash, i.e. if you put in $1, hope to get back 20 cents every year?Or you saying 20% IRR?

We are targeting 20% Cash on Cash. We will measure and report the IRR as well.

Is the goal to send out distributions monthly after the investment period?

Distributions happen immediately. As soon as we know the profits and the distribution calculations are made, our LPs (those who were in the Fund for the month) will get payments. Typically within the first week of the following month.

FAQ

Is this for accredited investors only?

Yes. If you decide to pursue an investment, you will receive a request for accreditation verification from a third-party accreditation verification system.

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