Primark Capital LLC, an asset management company focused on investing in the lower middle market in private equity, has registered a closed-end interval fund called the Primark Private Equity Fund. The preliminary prospectus does not contain the final number of shares to be issued or pricing information.
Interval funds are closed-end investment funds that provide liquidity to shareholders by making quarterly repurchase of between 5 and 25 percent of its outstanding shares. The Primark Private Equity Fund expects to offer repurchase of 5 percent, which is the minimum amount permitted.
Primark Private Equity Fund intends to invest in a globally diversified portfolio of private equity and other investments including direct equity investments in private operating companies, primary and secondary investments in private equity funds, publicly traded private equity investments, and short-term investments.
Primark Advisors serves as the investment adviser of the fund and will be responsible for determining and implementing the overall investment strategy, including direct investments. Foreside Financial Services acts as the distributor and principal underwriter.
Shares will generally be offered at the net asset value per share on each regular business day.
The offering will be comprised of three share classes designated as Class I, Class II and Class III shares. However, Class II and Class III shares will not be offered to investors until the SEC permits the fund to utilize the multi-class structure.
Generally, the minimum investment is $25 million for Class I shares, $1 million for Class II shares, and $50,000 for Class III shares (which may be reduced for certain investors).
The fund will pay the adviser an investment management fee of 1.50 percent of the average daily net assets of the fund.
Primark Private Equity Fund has applied for exemptive relief from the SEC so that it can adopt a distribution and service plan for its Class III shares to pay the distributor an annual fee of up to 0.25 percent of the average daily net assets of the fund attributed to Class III shares.
The requested exemptive relief will also allow the fund to adopt a shareholder servicing plan for Class II shares to pay qualified recipients up to 0.10 percent on an annualized basis of the fund’s average daily net assets attributed to Class II shares.
The adviser has agreed to reduce its management fee and pay the operating expenses of the fund, to the extent necessary to limit operating expenses, to the annual rate of 1.60 percent, 2.00 percent, and 2.25 percent for Class I, Class II and Class III shares, respectively.
The fund does not charge incentive or performance fees.