Frequently Asked Questions

FDLD only selects 1-2 private companies to work with each year. We typically spend many months working hands on with the company before structuring an investment, bringing our network of investors private equity opportunities they can trust.

Investment opportunities are presented to investors via Zoom call (or in-person if you live near Dallas, TX or Columbus, OH). A typical presentation takes about an hour and is scheduled at a time convenient for you. Because every investor has different goals & questions, we do not schedule you at the same time as other investors unless those investors are invited by you. (You are welcome to invite anyone you'd like - such as peers, associates, investment partners, friends, spouses &/or advisors.) Each call is scheduled independently to allow for dynamic discussion during the investment overview, as well as answers to any unique questions you may have. Most of our investors listen to every opportunity, as it helps them get to know our style and approach with companies, as well as the different options available to them.

Absolutely not. Our goal is to provide you with fully vetted, transparent investment options into private companies. We encourage investors to attend all investment presentations (there are only 1-2 per year), but there is never any obligation or pressure to invest.

Our approach is transparent and pressure free. We simply request a yes/no decision within 2 weeks of our call.

Funding time varies for each investment. Because many of our investors invest through IRA's, we typically allow up to 30 days to fund. Certain opportunities have shorter or longer term funding deadlines, others can structure funding over a period of time. Feel free to ask us about the funding timeline and flexibility for any investment.

No. There is never a cost to register or to attend any of our investment presentations.

Approximately 35% of the investors in each of our limited partnerships are new to private equity. Most of our new investors are business owners, professionals (doctors, lawyers, accountants, consultants, real estate agents, athletes), technical experts (engineers, scientists) and corporate executives who are specialists in fields where investment strategy was not a part of the curriculum. Individuals with these careers have historically been excluded from the PE world, and it is our passion to change that. We love educating others on the unique business strategies of the companies we work with, how the PE space works, how deals are structured, and how allocating a portion of their retirement savings to private equity (instead of 100% stocks) can generate significantly higher returns without increasing risk. "My wife and I are doctors. We have learned more about industries, business strategy, and investment strategy listening to your deal presentations than we ever did in school. It is so helpful that each company is presented as a unique investment because it allows us to really understand different timelines, types of returns, and exit strategies. We have even applied some of this to our practice! Your style and approach is so refreshing; as is your detail and diligence. For the first time in our lives, we actually feel like we are prepared for retirement." -Dr. K & Dr. H

Each investment opportunity is structured as an independent limited partnership. Most of our investments are direct equity investments into a specific company. This allows our investors to really get to know the companies they invest in, and choose investments into companies aligned with their personal interests and investment goals.

Yes. Investors receive a K-1 for each of their partnership interests. The timing of your K-1 is typically based on (a) the legal structure of the company the partnership is invested in, and (b) if that company is an LLC, when that company files their annual tax return. The standard filing deadline for corporate and partnership tax returns is March 15th of each year. We work with our investment holdings to try and provide you with your annual K-1 by this date. If an extension is filed, the IRS deadline is September 15th. In the event an extension is required, you will receive a notification and estimate on timing for your K-1.

FDLD takes a fee (called carried interest) that is charged as a percentage of the total gain on an investment (meaning we do not take any fees until you have received return of your principal investment). We believe this fee structure aligns our interests with yours, as FDLD only makes money if you make money. The industry standard is a carried interest fee of 20-30% plus a 2% annual management fee. Most of our fees are below this standard, because we believe that if we are making the right investment choices, we can achieve higher returns than our peers at a lower cost to our investors. So far we have proven this to be true.

Each limited partnership is legally obligated to cover its own operating expenses. These costs include things like legal fees, filing fees for the LP, document administration fees, wire transfer fees, and accounting fees. FDLD may request a “Reserve” from investors to cover the estimated budget for these expenses, and/or may invoice investors in arrears in accordance with their pro rata interest. At year-end, each investor will receive a Schedule K-1 and a full accounting of all expenses. To date, FDLD has not had a fund with expenses exceeding the industry average of 2% of capital contributions. *These statements are provided for your reference and are intended to provide clarity in how the limited partnership operates. In the event of any inconsistency between these statements and the terms and provisions of the Limited Partnership Agreement, the terms set forth in the Limited Partnership Agreement shall prevail.

To invest in private equity, you must qualify as an accredited investor under guidelines established by the Securities and Exchange Commission (SEC). There is not a test or certificate required. Most investors meet SEC qualification metrics based on income or net worth. In general, qualification requires that the investor is at least 18 years old, earns $200,000/year (if individual) or $300,000/year (if married), or has a net worth of $1,000,000. See full qualification standards here: SEC.gov.