Bonita-based Private Equity Fund Facilitates Trade at 16% Premium

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Bonita Springs-based investment adviser, TerraCap Management, LLC, has facilitated a trade between two private shareholders of its real estate private equity fund, TerraCap Partners II, LP. The trade was accepted on April 3, 2015 at a 15.8% premium; market price for such a trade is generally 20% or more below the shares’ net asset value. The trade is expected to be finalized shortly.

“We were happy to help an investor who requested liquidity and organized a bid process to bring it to investors in the fund,” says TerraCap’s Robert Gray, and his partner, Steve Hagenbuckle, agrees. “We had fourteen enthusiastic LPs interested in increasing their position in TerraCap Partners II, our second deep value real estate fund,” explains Mr. Hagenbuckle. “For one LP to sell a position to another LP at a nice profit speaks volumes.”

TerraCap Partners II had its final close in September 2013 with $102 million in equity. The fund owns properties throughout the state of Florida, including the recently renovated La Quinta Inn & Suites in Bonita Springs, Disney-anchored Celebration Center in Orlando, and Sarasota Sun Center—home of the Sarasota YMCA. The fund’s recent sales include Coconut Office Center in Estero, and the Hampton Inn & Suites in Ft. Myers Beach.

DISLCOSURES: TerraCap funds are illiquid investments. This trade is the first of its kind, and is not indicative of future trade results. The transaction has not completed, and the prices published above do not include applicable transaction and attorney’s fees. TerraCap Partners II, LP is closed, and is not accepting new investments. TerraCap Management is not a broker/dealer, but facilitated the trade in accordance with its responsibilities to the investors of the fund pursuant to the limited partnership agreement. This release is for information purposes only, and is not an offer to sell nor a solicitation of an offer to buy securities.