WestRock Investments is a value oriented, risk focused investment partnership. Its purpose is to generate long-term above average investment returns through investment in leading businesses and through partnership with highly capable business managers. Due to SEC rules, the fund can only accept accredited investors as investment partners. Additional information can be found here.
In general, an accredited investor will meet the following criteria:
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
- a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.
In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
- any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
- any entity in which all of the equity owners are accredited investors.
Salient terms fees and terms relating to Limited Partner investment in the Partnership include the following:
- Minimum Investment: $50,000
- Management Fee: 1%
- Incentive Fee: 22% – Both the Management Fee and the Incentive Fee are both intended to align the outcomes of both the general partner and limited partners as much as possible by the partnership.
- High Water Mark: If the value of your investment in the fund declines, an incentive fee is not collected until your losses are fully recouped
- Investment Return Hurdle: 6% – No incentive fees are collected until the Limited Partner investment return hurdle has been crossed
- 1-Year lock-up period for initial investments: Limited Partners can withdraw initial investment capital one year after initial investment.
- Quarterly Redemptions: Withdrawal of Limited Partner investment capital are allowed quarterly after the first full year of investment in the investment partnership.