Procida's 100 Mile Fund Now Open-Ended; Investors Vote 100% on Conversion
By Post Monday, August 18 2014 @ 02:31 PM EDT
Regional real estate investment vehicle also raises minimum investment;quadruples maximum fund size
ENGLEWOOD CLIFFS, NJ – AUGUST 18, 2014 – Procida Funding & Advisors, LLC has announced today that it has received unanimous approval and consent to convert its previously close-ended investment vehicle, the 100 Mile Fund, to an open-ended fund, among other amendments.
The 100 Mile Fund – which concentrates on real estate, particularly distressed and half-built construction, in the 100-mile vicinity of New York City – was scheduled to expire actively investing on December 31st, 2014 and then begin liquidation. The fund has totaled $170MM in transactions since its 2011 founding, $50MM of which has already been monetized. Founder Billy Procida, who is 100 Mile’s largest investor, was driven to convert the fund to open-ended by the significant interest in rollover from existing members as well as the ability to accommodate growing new membership.
“As the fund’s manager, I felt strongly that the interests of all investors including myself were not going to be best served going from Fund I to Fund II to Fund III and so on,” said Procida. “We can now affirmatively attract and allow new investors because they don’t have to worry about the fund sun-setting. It is very gratifying that every single member agreed.”
The amendments will now allow members invested in the fund for a minimum of one year to request redemption at several stipulated points throughout the year, which they could not do before. The maximum fund size has also changed – quadrupling from $25MM to $100MM. The minimum investment per member will double from the original $100,000 investment to a $200,000 minimum. Both are atypically low numbers friendly to small and medium size investors.
In order to officially amend the operating agreement, Procida required the consent of members holding no less than 75% of the fund’s percentage interests; Procida got 100% written consent from all members.
“Over the last twenty years, I’ve invested over 70% of my net worth with Billy Procida and then advised my family and friends to do the same,” said fund investor Mike Gedoff. “He is always there to explain what’s going on and is the most trustworthy and knowledgeable person I know in the real estate business. It’s not often you see a real estate focused fund that is predominantly debt oriented averaging 15% returns. Plus I feel comfortable knowing that Billy has his skin in the game. I almost wish the fund had started out open-ended, because once I give my money to Billy, I don’t want to take it back.”
About Procida Funding & Advisors, LLC
Procida Funding, LLC, provides bridge, mezzanine and equity capital to the real estate industry and middle market companies. Since 1995, the Firm has completed over $2 billion dollars of transactions ranging from $1,000,000 to $50,000,000. The Firm utilizes its own capital as well as strategic capital partners. Procida Advisors provides due diligence and asset management services to financial institutions and private equity funds with a concentration on construction, bankruptcy, restructuring and marketing.
The firm’s founder William Procida has been a prominent leader in the Tristate-area real estate market for over 30 years, building over one billion dollars in projects and financing more than two billion dollars. In addition to being a media commentator, with frequent appearances on CNBC and Fox Business, he has received the New York City “Developer of the Year Award” and National Association of Home Builders “Pillar of the Industry Award.”