This website not an offer to sell or a solicitation of an offer to buy securities of any fund many managed by Longitude. Solicitation of offers to buy the risks inherent in the investment in a Fund. The information herein is not intended to provide, and should not be construed as financial advice. Portfolio Companies are listed for informational purposes only and should not be considered a recommendation to sell or to purchase any specific security.
An investment in any Longitude fund involves a significant degree of risk. The following considerations should be carefully evaluated.
Reliance on Management
The success of the fund will depend on the general partner, and in particular, on the ability of the investment professionals who manage the general partner, to implement the fund’s investment strategy, to identify and consummate suitable investments and manage these investments to profitability. The loss of the services of one or more of these investment professionals would likely have a material adverse effect on the general partner and its ability to effectively manage the fund.
There can be no assurance that the general partner will be able to identify, structure and implement investments consistent with the fund’s investment objective, strategy or policies, and there can be no assurance that the fund will be able to achieve its expected returns or achieve its investment objectives. There can be no assurance that any portfolio investments completed by the fund will provide returns commensurate with the risk of investment in the Fund.
No representation is being made that the fund will or is likely to achieve comparable performance results to that shown herein. Past performance is not necessarily indicative of future results. Although valuations of unrealized investments are made on assumptions that the general partner believes are reasonable under the circumstances, the actual realized return on unrealized investments will depend on among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ significantly from the assumptions on which the valuations used in the data contained herein are based. Accordingly, there can be no assurance that these valuations are accurate and the actual realized return on these investments may differ materially from the expected returns.
Lack of Diversification
The fund may concentrate its investments in a particular industry or geographic region, and may not be broadly diversified. Any disruptions to such industries will affect the value of the fund’s portfolio more than they would likely affect a portfolio that was not similarly concentrated. The fund may, therefore, be subject to greater risk of loss than a more broadly diversified fund.
No market exists for the interests in the fund and none is expected to develop. It is anticipated that there will be a significant period of time before the fund has completed its investment program. Many of the investments made by the fund may be very illiquid and may take from years from the date of initial investment to reach a state of maturity when realization of the investment can be achieved, if at all. It is anticipated that all or a substantial portion of the fund’s investments will consist of securities that are subject to restrictions on sale by the fund because they were acquired from the issuer in “private placement” transactions or because the fund will be deemed to be an affiliate of the issuer. Generally, the fund will not be able to sell these securities publicly without the expense and time required to register the securities under the Securities Act.
If an investor fails to pay its commitment to the fund when due, and the contributions made by non-defaulting investors are inadequate to cover the defaulted contributions, the fund may be unable to pay its obligations when due. As a result, the fund may be subjected to significant penalties that could materially adversely affect the returns to the investors (including non-defaulting investors).
General Partner Conflicts of Interest
Instances may arise where the interests of the general partner may potentially or actually conflict with the interests of the fund and the investors. For example, the existence of the general partner’s carried interest may create an incentive for the general partner to make more speculative investments on behalf of the fund than it would otherwise make in the absence of such performance-based arrangements. Assets of the fund will be valued by the general partner. The general partner is not required to obtain and does not expect to obtain an independent appraisal of the value of securities or other assets.
Economic and Regulatory Risk
Securities markets and exchanges have experienced high volatility, market disruption and substantial losses, which may continue for some time. Investors should be aware that these market conditions can be expected to present significant challenges to investors, including managers with past success under other market conditions. Unexpected volatility, illiquidity, governmental action, currency devaluation, or other events in global markets in which the fund directly or indirectly holds positions could impair the ability of the fund to carry out its business and could cause the fund to incur substantial losses. Legal, tax and regulatory changes could occur during the term of the fund that may adversely affect the fund, its portfolio companies or the investors.