Preferred Capital Private Equity Fund holds a tax exemption decree as a Puerto Rico Private Equity Fund under Act 60, the Puerto Rico Incentives Code. It invests in private Puerto Rico businesses through dedicated series, each with its own investors and investments.
The Fund is organized as a series LLC. Investors purchase membership interests in the series of their choosing, that series invests the capital, and returns are distributed to that series' investors. All series share the Fund's Act 60 tax decree and are managed by Preferred Capital Fund Management LLC, the Fund's managing member and investment advisor, which is compensated by fees or a share of each series' profits.
The Fund was granted tax exemption as a Puerto Rico Private Equity Fund by the Department of Economic Development and Commerce in 2020, for an exemption period of fifteen years. Compliance with the eligibility requirements is determined for each tax year.
Summarized from the Fund's tax exemption decree under Act 60-2019. Not tax advice; investors should consult their own tax advisors.
Lend to established businesses in Puerto Rico against collateral, earning current income from interest and fees while preserving the capital invested.
Purchase equity in established businesses in Puerto Rico and grow them over time, sharing in their profits and in the value created at exit.
Finance the construction and development of real estate in Puerto Rico, as a lender or as an equity partner, earning interest on the loans and sharing in the value of the completed projects.
Series formed around a single specialized opportunity, such as the acquisition of a particular company that suits a small group of investors.
The Fund's manager is an exempt reporting adviser with the SEC, owned by four members.
