Investment Disclosures.
Risk factors and important disclosures relating to the Alzaro Energy funds.
Risk of Loss
An investment in the Alzaro Energy funds involves a high degree of risk, including the risk of loss of the entire investment. Energy infrastructure investments are subject to construction, operational, regulatory, technology, commodity, counterparty, and market risks. Prospective investors should be able to bear the loss of their entire investment.
Illiquidity
Interests in the funds are illiquid and subject to significant transfer restrictions. There is no public market for fund interests, and none is expected to develop. Investors should expect to hold their interests for the full term of the fund, which is ten years subject to two one-year extensions.
Leverage
The funds may use leverage at the fund or asset level. Leverage magnifies both gains and losses and increases the risk of loss. There is no assurance that financing will be available on acceptable terms.
Valuation
Fund assets are largely illiquid and are valued using fair-value methodologies that involve judgment. Valuations are subject to the firm's Valuation Policy and independent review, but reported values may differ from amounts ultimately realized.
Concentration
The funds may hold concentrated positions by sector, geography, technology, or counterparty. Concentration increases the sensitivity of returns to adverse developments affecting a particular exposure.
Regulatory & Policy Risk
Energy assets are heavily regulated and depend on policy frameworks, tariffs, incentives, and permitting. Changes in law, regulation, or policy could materially affect the value and returns of fund assets.
Targeted Returns
Any targeted returns, including the 8% preferred return, are objectives, not guarantees, and are based on assumptions that may not be realized. Actual results may differ materially. Past performance is not indicative of future results.
Fees, Expenses & Carried Interest
The funds bear organizational and operating expenses and carried interest of 20% subject to an 8% preferred return with a full general-partner catch-up, as described in each fund's definitive documents. Prospective investors should review the definitive documents for the complete economic terms.
Conflicts of Interest
The firm and its affiliates may face conflicts of interest, which are addressed through the firm's governance policies and oversight by the independent Limited Partner Advisory Committee. See the Conflicts of Interest Policy on the Governance page.
Forward-Looking Statements
Statements that are not historical facts are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially. The firm undertakes no obligation to update forward-looking statements.