SLF V Fixed Note Fund, LLC

For new investors not currently associated with this Fund, this opportunity offers a reliable fixed rate of return, where the proceeds are invested in the same assets that will be liquidated to generate that return, and with the repayment priority and other favorable terms that are typically reserved for exclusive private equity and hedge funds.

For existing Fund investors, this Offering provides a unique opportunity to achieve a higher projected rate of return on their investment, by supporting and enhancing the value of assets already owned by the Fund. It also reduces the Fund’s reliance on often more costly third-party private equity sources. Additionally, this Offering allows SLF to avoid selling assets in a weak market, and to position assets for sale when market conditions are more favorable, potentially commanding higher prices, all while further minimizing the need for potentially more expensive outside capital. 

Anyone who meets the accredited investor requirements may invest in this Offering.

Existing members of Senior Living Fund V USA, LLC were provided a 30-day exclusive window to invest in this Offering, before this investment was made available to new investors not already associated with this Fund.

Your investment in the Fixed Rate Notes, and your right to repayment, is backed and supported by the equity or “net worth” of the Fund, which is derived from the total value of the tangible real estate assets and security interests held by the Fund (over the value of any secured liabilities). In virtually all situations, the Fund’s investments in various senior housing-related assets are evidenced by the Fund’s equity ownership of the asset (fee title) or are loans secured by mortgages, deeds of trust and/or pledges of membership interests or other assets in favor of the Fund.

The Fixed Rate Notes will have priority over equity investors within the Fund. When a Fund asset is liquidated and sold, the net sales proceeds will be distributed to the Fund. After fund expenses and any senior or secured (mortgage) creditors are paid, the Fixed Rate Notes will be repaid in full before any distributions or dividends are paid to Fund equity investors. Please review the PPM to fully understand the distribution priorities.

SLF V Fixed Note Fund will provide monthly payments to investors on or about the 15th of each month. Once your investment has been completed and all related paperwork executed and accepted, the first payment will be made within approximately 45 days. Please see the PPM for more detailed information on the timing of the first payment.

Notes signed with SLF V Fixed Note Fund will typically mature in three (3 ) years. Three years covers or exceeds the amount of time we project will be required to stabilize and improve the market value of the Fund’s assets. The Fund Manager does have the right to prepay the Note before its stated maturity date.

An investor may request their Note to be redeemed prior to its stated maturity date. The Fund Manager is under no obligation to approve such request. Should the Fund Manager approve such request, we will make the best efforts to satisfy the early redemption request within 90 days. 

Funds raised through this Offering will be applied by SLF to continue to financially support the Fund’s existing assets, working to cover operating deficiencies and improve market value while allowing time for the capital markets to rebound from the current economic challenges posed by high interest rates, inflation and effects of the COVID pandemic. The invested capital will also assist in building reserves for any future unforeseen asset needs.

Fixed Rate Notes will provide a 15% annual interest rate of return to all noteholders. An 8% annualized return will be paid currently on a monthly basis, with the balance of the interest (i.e., an additional 7% annualized return) paid upon the maturity of the Note. 

Adequate reserves will be set aside that will strictly be used to support investor payments for two years, which the Manager anticipates will be more than sufficient time for SLF to generate positive cash flow from the Fund’s operating assets and to begin the process of liquidating the Fund through the sale of Fund assets.

This is a speculative investment.

• Although the Fund will attempt to redeem Fixed Rate Notes upon or prior to maturity, there is no public market for the Fixed Rate Notes and none is expected to develop in the future.

• The Fixed Rate Notes offered hereby are non-equity and non-voting interests. 

• Noteholders will not have the ability to participate in any of the decisions made by the Manager or vote in any matters related to the Fund.

• The Fund has not made an attempt to consider the favorability or suitability of such terms for any prospective investors.

• Delays in making cash distributions could result from the inability of the Fund to make or acquire profitable assets.

• The financial success of the Fund may be sensitive to adverse changes in general economic conditions in the U.S., such as recession, inflation, unemployment, and interest rates.

• Numerous variables are utilize to project future values of Fund assets; SLF has little to no control over many of such variables, and relies on outside opinion of economists and industry specialists. The actual value of such variables very well could be different than the value used in SLF’s projections.

There are many other risk factors that should be understood and considered before you decide to invest. They are located in the Private Placement Memorandum (PPM) for the Fund.

We accept investments though an IRA (Traditional, SEP, or ROTH), a Trust, an Entity, and individuals. The Fund can accommodate investment capital from multiple sources. However, these funds cannot be co-mingled into one account. A separate investment account will be established for each unique source of capital.

Noteholders will receive a 1099 tax form for their tax return.

The investment will take the form of a Promissory Note executed by the Fund, as borrower, in favor of the investor, as lender. In addition, the terms of every investment are governed by the PPM, the investor’s respective Subscription Agreement and the Fund’s Operating Agreement.

The current maximum offering is $3.85M. This amount has been determined by the Manager based on the current and anticipated capital needs of the Offering and the Offering’s assets, taking into consideration capital or anticipated capital raised by concurrent offerings by other SLF Funds (which in certain circumanstances may have co-investments in the Fund’s assets) and by other third-party sources of private equity. The Manager reserves the right to increase or decrease the maximum amount of this Offering, based on capital acquired from other sources and changes in Offering asset needs, among other factors.