’40 Act Fund offers qualified investors access to
institutional-quality private equity and venture capital
investments.
Fairway Capital Management (“Fairway”) announced today that
Fairway Private Equity & Venture Capital Opportunities Fund
(the “Fund”) increased in Net Asset Value by 1.62% in the quarter
ended June 30, 2024. For the one and two-year periods ended June
30, 2024, the Fund returned 12.55% and 12.37% respectively. Since
its December 29, 2021 inception date, the Fund has an annualized
return of 5.71%. The S&P 500 index returned 4.28%, 24.56%,
22.05% and 7.05% during the same periods. *
The Fund, which is registered under the Investment Company Act
of 1940 (the “’40 Act”), provides qualified investors exposure to
venture capital, private equity and private credit investments
through primary, secondary and co-investment strategies that are
typically available only to large institutional investors.
Fairway Founding Partner Kevin Callahan issued the following
statement:
“As we near the 3-year mark, we continue to
be very pleased with the Fund's performance, and the second quarter
was another solid quarter. Most importantly, we are very happy with
the quality of the investments in the portfolio. In launching the
Fund, our goal was to deliver a truly institutional-quality private
equity and venture capital portfolio in a '40 Act fund structure.
We believe our competitive advantage lies in the fact that our
investment team has access to many highly sought-after funds
through relationships developed over many decades. The portfolio
reflects this access."
"The Fund is designed to provide balanced
exposure to high-quality private equity, venture capital and
private credit. It is gratifying to see that our performance has
been broad-based. Given our assessment of the market environment
when we launched in late 2021, we initially emphasized primary fund
commitments and direct company co-investments. We are very happy
with the investments in each of these areas. Our buyout and private
credit investments have delivered strong performance, and we
believe these funds are well-positioned to deliver strong returns
going forward. The venture capital investments include several
established firms with highly recognizable franchises, as well as
some newer funds raised by experienced managers that we believe
will generate attractive performance. Many of these managers are
investing in companies that contribute to the rapid technological
innovation that we are seeing in the marketplace, including
companies that will be direct beneficiaries of continued
developments in artificial intelligence. Further, we continue to
see very strong deal flow with numerous opportunities across all
types of investments- primary, secondary and co-investments."
As a ’40 Act fund, Fairway Private Equity & Venture Capital
Opportunities Fund offers greater flexibility than a traditional,
institutionally oriented private equity investment vehicle. The
evergreen structure provides immediate and continuous exposure to
high-quality private equity and venture capital investments.
Investments can be made on a quarterly basis. The Fund’s redemption
feature allows for liquidity on a quarterly basis, subject to
limitations. Importantly, the Fund features Form 1099 tax
reporting, simplifying the tax return process.
The Fairway team includes veteran private equity professionals
with total collective experience of 100+ years and deep
relationships with many leading private equity and venture capital
General Partners. Team members are:
- Tom Gladden previously was a Partner on the Adams Street
Partners Primary Investment Team (2002–2016).
- Kathy Wanner previously was Partner and Manager of the Adams
Street Partners U.S. Primary Investment Team (1993–2015).
- Laura Milligan was Director of Private Equity for The Boeing
Company (2014–2019). In addition, she worked at Mercer Investment
Consulting (2010–2014) and Adams Street Partners (2005–2008).
- Kai Moon, Investment Analyst, is a 2020 graduate from
Binghamton University’s School of Management.
- Lauren Bozzelli previously was a Partner on the Client Service,
Corporate and Fund Accounting teams at Adams Street Partners
(2007–2017). In addition, she worked at KPMG (2004–2007).
- Kevin Callahan previously was the Chief Operating Officer at
Adams Street Partners (1994–2016).
- Patrick McGarvey was a Managing Director at GCM Grosvenor, and
previously spent 17 years on Wall Street with senior roles at
Goldman Sachs, Merrill Lynch and DLJ.
- John Callahan worked at Headlands Tech Global Markets
(2015–2021) and then was a Vice-President at TD Securities
(2021–2023) upon its acquisition of HTGM.
About Fairway Capital Management
Fairway Capital Management is an investment manager focused on
private equity and venture capital investments, headquartered in
Chicago.
For more information about Fairway Capital Management, please
visit fairwaycapm.com.
Glossary of Terms
Primary Investments: Investments in newly established
funds.
Secondary Investments: Investments in existing funds that
are acquired in privately negotiated transactions.
Co-investments: Direct investment in identified operating
companies, typically alongside one or more portfolio funds.
Venture Capital: Investments in new and emerging
companies are usually classified as venture capital. Such
investments are often in healthcare, internet-enabled or other
technology-related industries. Companies financed by venture
capital are generally not cash flow positive at the time of
investment and may require several rounds of financing before the
company can be sold privately or taken public. The Fund’s venture
capital investments may finance companies along the full path of
development or focus on certain sub-stages (usually classified as
seed, early and late stage) in partnership with other
investors.
Seed/Early-Stage: Typically involves investments in
businesses still in the conceptual stage, or where products may not
be fully developed and where revenues and/or profits may be several
years away.
Growth Equity/Later-Stage: Typically involves minority
investments in established companies with strong growth
characteristics. Companies that receive growth capital investments
typically are enterprises earlier in their development with some
level of revenue and visibility to break-even or positive cash
flow.
Buyouts: Investments that provide equity capital for
acquisition transactions either from a private seller or the public
are usually classified as buyouts. The Fund’s buyout investments
may represent the purchase of an
entire company, or a refinancing or recapitalization where
equity is purchased. Borrowing is often employed in these
transactions at the company level. A controlling interest in the
company is often, but not always, obtained by the private equity
fund or an investor group of which it is a member.
Special Situations/Other Private Assets: A broad range of
investments including private debt instruments, infrastructure
investments and distressed debt/turnarounds make up a portion of
the private equity market. The Fund’s special situations
investments may include senior and/or subordinated debt which is
secured and/ or unsecured and, potentially as a component of the
transaction, preferred or common equity, warrants and other
securities offered in connection with such debt. The value drivers
and cash flow characteristics of these funds are frequently
distinct from those of other private equity investments,
complementing a buyout and venture capital portfolio.
Investors should carefully consider the investment
objectives, risks, and charges and expenses of the Fund before
investing. This and other important information about the Fund is
contained in the Prospectus, which can be obtained at
www.fairwaycapm.com. The Prospectus should be read
carefully before investing. The Fund is distributed by Ultimus Fund
Distributors, LLC. There is no affiliation between Ultimus Fund
Distributors, LLC and Fairway Capital Management, LLC.
Important Risk Information
The Fund has been organized as a non-diversified, closed-end
management investment company and designed primarily for long-term
investors. Shares are speculative and illiquid securities involving
substantial risk of loss. Investment in the Fund is not suitable
for all investors. An investor should not invest in the Fund if the
investor needs a liquid investment. Shares are not listed on any
securities exchange, and it is not anticipated that a secondary
market for shares will develop. Shares are subject to substantial
restrictions on transferability and resale and may not be
transferred or resold except as permitted under the Agreement and
Declaration of Trust. Although the Fund may offer to repurchase
Shares from time to time, Shares will not be redeemable at a
Shareholder’s option, nor will they be exchangeable for shares of
any other fund. As a result, an investor may not be able to sell or
otherwise liquidate his or her Shares. Shares are appropriate only
for those investors who can tolerate a high degree of risk and do
not require a liquid investment and for whom an investment in the
Fund does not constitute a complete investment program.
The Fund is a “non-diversified” management investment company.
Thus, there are no percentage limitations imposed by the 1940 Act
on the Fund’s assets that may be invested, directly or indirectly,
in the securities of any one issuer. Consequently, if one or more
Fund Investments are allocated a relatively large percentage of the
Fund’s assets, losses suffered by such Fund Investments could
result in a higher reduction in the Fund’s capital than if such
capital had been more proportionately allocated among a larger
number of investments.
Class I Total Annual Expenses after Acquired Fund Fees:
4.69%
Class I Total Annual Expenses Before Fee Waivers and Acquired
Fund Fees: 10.31%
The Adviser has entered into an expense limitation agreement
(the Expense Limitation Agreement”) with the Fund, whereby the
Adviser has agreed to reduce the Management Fee payable to it (but
not below zero), and to pay any operating expenses of the Fund, to
the extent necessary to limit the operating expenses of the Fund
(excluding brokerage commissions and other similar transactional
expenses, interest (including interest incurred on borrowed funds
and interest incurred in connection with bank and custody
overdrafts), other borrowing costs and fees including interest and
commitment fees, taxes, acquired fund fees and expenses, incentive
fees to be paid to the Adviser, litigation and indemnification
expenses, judgments, and extraordinary expenses) to the annual rate
(as a percentage of the net assets of the applicable class of
Shares of the Fund, as calculated at the end of each calendar
quarter) of 2.70% and 2.00% with respect to Class A Shares and
Class I Shares, respectively (the “Expense Cap”). For a period
ending three years after the end of the month in which the Adviser
waives its Management Fee or pays any operating expenses of the
Fund pursuant to the Expense Cap, the Adviser may recoup amounts
waived or incurred to the extent such recoupment does not cause the
Fund’s operating expense ratio (after recoupment and excluding
brokerage commissions and other similar transactional expenses,
interest (including interest incurred on borrowed funds and
interest incurred in connection with bank and custody overdrafts),
other borrowing costs and fees including interest and commitment
fees, taxes, acquired fund fees and expenses, incentive fees to be
paid to the Adviser, litigation and indemnification expenses,
judgments, and extraordinary expenses) to exceed the lesser of (a)
the expense limit in effect at the time of the waiver, and (b) the
expense limit in effect at the time of the recoupment. The Expense
Limitation Agreement will continue in effect through July 31, 2024,
and will renew automatically for successive periods of one year
thereafter, unless written notice of termination is provided by the
Adviser to the Fund not less than ten (10) days prior to the end of
the then-current term. The Board may terminate the Expense
Limitation Agreement at any time on not less than ten (10) days’
prior notice to the Adviser, and the Expense Limitation Agreement
may be amended at any time only with the consent of both the
Adviser and the Board.
The Fund Investments will include direct and indirect
investments in various companies, ventures and businesses
(“Portfolio Companies”). This may include Portfolio Companies in
the early phases of development, which can be highly risky due to
the lack of a significant operating history, fully developed
product lines, experienced management, or a proven market for their
products. The Fund Investments may also include Portfolio Companies
that are in a state of distress, or which have a poor re- cord, and
which are undergoing restructuring or changes in management, and
there can be no assurances that such restructuring or changes will
be successful. The management of such Portfolio Companies may
depend on one or two key individuals, and the loss of the services
of any of such individuals may adversely affect the performance of
such Portfolio Companies. Some or all of the Portfolio Fund
Managers (subject to applicable law) and the Fund may use options,
swaps, futures contracts, forward agreements and other derivatives
contracts. Transactions in derivative instruments present risks
arising from the use of leverage (which increases the magnitude of
losses), volatility, the possibility of default by a counterparty,
and illiquidity. Use of derivative instruments for hedging or
speculative purposes by the Fund or the Portfolio Fund Managers
could present significant risks, including the risk of losses in
excess of the amounts invested.
As an indirect investor in the Portfolio Funds managed by
Portfolio Fund Managers that are not registered as investment
advisers, the Fund will not have the benefit of certain of the
protections of the Advisers Act. The securities of the Portfolio
Funds in which the Fund invests or plans to invest will generally
be illiquid. The Adviser does not control the investments or
operations of the Portfolio Funds. A Portfolio Fund Manager may
employ investment strategies that differ from its past practices
and are not fully disclosed to the Adviser and that involve risks
that are not anticipated by the Adviser.
In view of the risks noted above, the Fund should be considered
a speculative investment and prospective investors should invest in
the Fund only if they can sustain a complete loss of their
investment. No guarantee or representation is made that the
investment strategy of the Fund will be successful, that the
various Portfolio Funds or Co-Investments selected will produce
positive returns, or that the Fund will achieve its investment
objective. Please see the Prospectus for additional risk
information.
*The performance data quoted represents past performance.
Current performance may be lower or higher than the performance
data quoted above. Past performance is no guarantee of future
results. The investment return and principal value of an investment
will fluctuate so that investor’s shares, when redeemed, may be
worth more or less than their original cost. For performance
information current to the most recent quarter-end, please call
toll-free (877) 792-0924.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240904906199/en/
Fairway Capital Management Kevin Callahan 312-961-9398
kcallahan@fairwaycapm.com