Fund Disclosures – Recreational

The following disclosures apply to all Recreational funds and to any performance, illustrative, or forward‑looking information published on this Site or in Recreational marketing materials. These disclosures are provided in addition to the definitive offering documents applicable to each fund and are not a substitute for those documents.

Offering restrictions

Interests in Recreational funds are offered only to persons who qualify as both "accredited investors" under Rule 501 of Regulation D and "qualified purchasers" under Section 2(a)(51) of the Investment Company Act of 1940. Offerings are made only pursuant to Rule 506(c) of Regulation D and rely on the exemption from investment company registration under Section 3(c)(7). Fund interests are subject to substantial restrictions on transfer.

Non‑U.S. persons: Recreational fund interests may not be offered, sold, or transferred to, or for the benefit of, non‑U.S. persons except in compliance with applicable non‑U.S. securities laws and Recreational's investor eligibility policies. Additional documentation may be required.

Investment risk

Investment in a Recreational fund involves a high degree of risk, including the possible loss of the entire invested amount. Prospective investors should review the risk factors in the applicable Private Placement Memorandum in full before investing. Material risks include, without limitation:

Illiquidity — fund interests are not transferable except with GP consent and subject to Rule 144 or another applicable exemption
Long-dated capital lock‑up (12–15 years with two 1‑year GP extensions, plus wind‑down)
Concentration risk within each sector‑dedicated fund
Leverage risk — funds may use up to 50–55% D/E at the venue level
Real estate market and interest rate risk
Operational, seasonality, weather, and consumer‑discretionary spending risk unique to recreational and entertainment venues
Regulatory, permitting, zoning, and licensing risk
Dependence on the general partner and Recreational's investment team
Potential conflicts of interest across Recreational funds and affiliates

Performance information

Any target or projected returns published on this Site (including target net IRR ranges, target MOICs, and target preferred returns) are hypothetical, are based on assumptions that may not be realized, and are not a guarantee or reliable indicator of future performance. Actual results may differ materially.

Recreational is a newer platform. Historical performance figures for Recreational funds are limited and, where presented, are calculated in accordance with the Global Investment Performance Standards (GIPS®) or, where GIPS is not applicable, on a consistent methodology described in the applicable offering document. Net figures are net of carried interest and fund expenses; gross figures are not. Recreational investment funds do not charge a platform fee. Individual investor returns will vary based on timing of contributions and distributions.

Fees, expenses, and carried interest

Fund‑level fees, expenses, carried interest, GP catch‑up, and waterfall mechanics are described in detail in each fund's Limited Partnership Agreement and Private Placement Memorandum. Prospective investors are urged to review those documents in full. In summary, Recreational funds share a common terms framework:

Platform fee: None
Preferred return: 8% per annum, compounded
Carried interest: 20% above preferred with 100% GP catch‑up
Waterfall: European whole‑fund
GP commitment: 2% of aggregate LP commitments
Carry escrow: 30% of distributed carry held with full clawback for the life of the fund
Minimum LP commitment: $2,000,000
Term: 12–15 years, with two 1‑year GP extensions and a customary wind‑down
Investment period: 5–6 years
Target net IRR (illustrative): 13–18% net across investment vehicles; individual fund targets may vary
Leverage policy: Maximum 50–55% D/E at asset level; investment-grade financing prioritized
Structure: Delaware Limited Partnership
Auditor: PwC · Counsel: LePore Law Group · Administrator: Independent third party

Conflicts of interest

Recreational manages multiple funds simultaneously. Conflicts of interest may arise, including in allocation of investment opportunities across funds, allocation of expenses, cross‑fund transactions, and the pursuit of affiliated business by Recreational or its principals. Recreational maintains a written Allocation Policy and Conflicts of Interest Policy; the LP Advisory Committee of each fund reviews and consents to material conflicts. Additional detail is provided in each fund's offering documents and, where applicable, Form ADV Part 2A.

Regulatory status

Recreational operates in reliance on applicable exemptions from investment adviser registration and expects to file, and be examined against, Form ADV following the threshold events specified in the Investment Advisers Act of 1940 and applicable state law. Recreational will file Form ADV Parts 1 and 2 and Form CRS with the SEC as and when required. See Form CRS.

Marketing materials

Any marketing materials distributed by Recreational have been reviewed for consistency with the SEC Marketing Rule (Rule 206(4)‑1). Any testimonial or endorsement, if included, will be identified as such along with any material compensation or conflicts. Case studies and portfolio examples, if included, will be selected on a consistent methodology described in the materials.

How to request documents

Prospective investors may request Recreational fund materials — including Private Placement Memoranda, Limited Partnership Agreements, subscription documents, Form ADV (when filed), and the applicable ESG addendum — by contacting Investor Relations at [email protected]. Distribution is subject to investor eligibility verification.