Accredited investors only · Reg D Rule 506(c) · Return not guaranteed · Read the Offering Circular

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Investment model

Units of $1.00 in a fund of small auto loans, paying a 10.125% preferred return a year, monthly. Here is how every part of it works.

The terms, taken apart.

Five numbers decide most of it.

Minimum investment

$50,000

50,000 units at $1.00 each. Add any amount after that.

= 1,000 units

Preferred return

10.125%

A year, paid monthly. Not guaranteed.

  • 9.5% from the loans
  • 0.625% General Partner top-up

Fund size

$25M of $100M

Current subscriptions against the maximum offering.

25% subscribed

Lock-up

12 months

Then quarterly redemptions with 90 days’ notice.

Distributions

The 15th

Every month, by direct deposit or reinvested.

Follow a dollar.

Where a dollar goes once it is in the Fund, and how it comes back to you.

  1. You buy units

    $1.00 per unit, 50,000 units to start.

  2. The Fund buys loans

    Auto loan receivables from local dealers, assigned to the Fund.

  3. Borrowers pay monthly

    Payments are collected and serviced in-house.

  4. The General Partner takes 20%

    10% of collected income for servicing, 10% for managing the Fund.

  5. You receive the preferred return

    10.125% a year, paid on the 15th or reinvested.

Anything earned above the Preferred Return is split evenly between the General Partner and the Limited Partners each year. If the loans earn less, the return can be lower.

Payout or growth?

Take your distribution every month, or let the Fund reinvest it for you. Move the numbers to compare.

Take it monthly

$50,625

paid out over the period

Reinvest it

$165,551

account value at the end

An illustration at the 10.125% Preferred Return, compounded monthly when reinvested. Not a promise: returns depend on loan performance and may be lower. Withdrawals follow the Limited Partnership Agreement.

Your first year, month by month.

  1. Day one

    Sign and fund

    Funds wait in a non-interest-bearing subscription account.

  2. When accepted

    You are in the Fund

    The General Partner counter-signs, from instantly to several weeks.

  3. Every 15th

    Distribution

    By direct deposit, or reinvested automatically.

  4. March 15

    Your K-1

    Prepared by an outside accounting firm.

  5. Month 12

    Lock-up ends

    Then quarterly redemptions with 90 days’ notice.

Who can invest?

Accredited investors only. Tick what applies to you; we verify it properly later.

To comply with Federal regulation, the General Partner’s compliance department verifies that all Investors are accredited. See the Offering Circular for further details on Accredited Investors.

Tick any that apply. If none do, the Fund isn’t open to you yet.

Who does what.

You, the Limited Partner

Limited Partner responsibilities

The Limited Partner should seek competent legal, accounting and tax advice to insure that an investment of this type is right for them. The Limited Partner should also review the Steel Returns L.P. Offering Circular. These documents detail the financial arrangements and risks.

All investors in The Fund must be accredited.

Steel Lending Group, the General Partner

General Partner responsibilities

The General Partner, or their Designee, researches, evaluates, underwrites, assesses risk and selects what auto loan cash flows The Fund invests in. To maximize benefits to the Limited Partners, the General Partner exercises due diligence in order to provide The Fund aggressive returns without undue risk.

  • Receipt and accounting of all payments
  • Following standard protocol for delinquent payments
  • Managing repossession and disposition
  • Providing payoff information to borrowers
  • Completing monthly accounting
  • Having federal and state income tax returns prepared timely by an outside accounting firm
  • Providing all Limited Partners the appropriate tax documents on an annual basis
  • Maintaining registration with required government entities

All the terms

Full terms, fees and risks are in the Offering Circular. Accredited investors only · Reg D Rule 506(c) · Return not guaranteed · Read the Offering Circular.

Show all 12 terms
Minimum investment
$50,000 (50,000 units at $1.00); add any amount after that
Preferred return
10.125% a year, distributed monthly
Distributions
Direct deposit on the 15th, or reinvested automatically
Maximum offering / current subscriptions
$100,000,000 / $25,000,000
Subscription acceptance
Upon General Partner review
Lock-up
12 months
Redemptions
Quarterly with 90 days’ notice
General Partner investment in Fund
General Partner contributes
Auditor
Cathedral CPAs & Advisors, LLP
Fund administrator
Steel Lending Group LLC
Legal counsel
White Summers Caffee & James, LLP
Reporting
Monthly investor statements; annual K-1s and audited financial statements

Ready to see if the Fund fits?

The capital team will walk you through the subscription and the accreditation check.

Book a call