Question 1

Is the 10% guaranteed?

Accepted Answer

No. The 10% is a target, not a promise, and no return of capital is guaranteed. What is documented is the order of payment: your accrued preferred return, including anything carried forward from a short month, is paid before 42 Solutions earns a dollar. Private lending carries real risk, including borrower default and loss of principal.

Question 2

How do you get paid?

Accepted Answer

Last. 42 Capital Management LLC manages the Fund and charges it no management fee. 42 Solutions originates and services the loans, and its fee comes only out of what remains after your accrued 10% preferred return is satisfied, and in a weak period it is zero. Nothing is taken off the top. We earn only after your preferred return is paid, which is exactly why we are careful about which deals and which borrowers we say yes to.

Question 3

How long is my money committed?

Accepted Answer

There is no lock-up and no minimum holding period. You can request a redemption in writing at any time, and we commit to commercially reasonable best efforts to complete it within twelve months of receiving your request, funded from loan payoffs and available cash flow. Because the underlying loans generally run six to twelve months, we expect to return capital sooner than that in the ordinary course. Your capital keeps earning the preferred return the entire time it is pending, right through the day it is paid. If requests ever exceed available cash, everyone is paid pro-rata as payoffs come in, nobody jumps the line. What we will not do is sell loans at a discount to fund a redemption, and in extraordinary conditions processing can be suspended or extended with notice. No timeline is guaranteed. If you may need this money on a fixed date, tell us and we will say so plainly.

Question 4

The Fund invests in loans from your own lending company. Isn't that a conflict?

Accepted Answer

It is a related-party structure, disclosed in the PPM, and the economics answer it. The Fund buys its share by true sale, at the full note rate, ranking equally with the share 42 Solutions keeps for itself, the same dollars per dollar invested. There is no markup or interest spread taken in between, and 42 Solutions has its own capital at risk in this loan book alongside the Fund.

Question 5

Who can invest, and how much?

Accepted Answer

Verified accredited investors only. The offering is made under Rule 506(c) of Regulation D, which requires us to verify accredited status through a third party before accepting any investment. The minimum is $100,000, which can be reduced at our discretion.

Question 6

What are the risks?

Accepted Answer

Real ones. Borrowers can default, property values can fall, and your capital is not liquid on demand. Every loan is underwritten with an equity cushion, a first-position lien, and title insurance, but none of that makes a loss impossible, and no return is guaranteed. The Private Placement Memorandum sets out the risk factors in full; read it and talk to your own advisors before you invest.