How will Next Act Fund decide how to invest its funds?
- Next Act Fund will be managed by the Members of the company. Each Unit will have one vote.
- Next Act Fund will act as an investment fund that provides angel capital investments, grants and loans. Next Act Fund will have an Investment Committee, which will vet investments, conducting initial diligence and interviews, with a particular emphasis on regional and women owned / led businesses.
- When the Investment Committee recommends an investment, Next Act Fund only moves forward with such investment if a majority of the Members indicate they are in favor of making the investment.
What will the Investment Committee do?
- The Investment Committee will conduct initial diligence and interviews with prospective portfolio companies. Investment strategy is that i) 75% of investments (equity, grants and/or loans) will be geared toward women led /owned businesses and ii) 25% of investments will be available for any business investment without regard to gender of the ownership or leadership of the business. While this is a strategy that will help the Investment Committee in identifying potential investments, the Members will ultimately vote as to whether to select any of these investment options.
Who will run the day to day operation of the Company?
Yvonne Campos will serve as the President. The President will serve on the Advisory Board, and make recommendations to the Advisory Board from time to time to elect other officers and make recommendations for other committees and or committee membership
What will the Advisory Board do?
The Advisory Board will help the President in an advisory role with respect to certain decisions as set forth in more detail in the Operating Agreement.
How much control should I expect to have?
Next Act Fund is member managed. A Majority of the Members (as defined in the Operating Agreement), with each Unit having one vote. Therefore, the ability to affect decisions with the company will rest of the Majority of the Members in most instances. Day to day matters will be managed by the President, and certain matters will be initially considered by the Investment Committee.
When are Annual membership investment fees due?
The initial annual membership investment fee will be at subscription. Subsequent payments will be due on or before January 15 of each day, or 15 days after the date of invoice.
How much is a Unit worth?
A Unit will cost $50,000, with the initial payment for the Unit being $10,000, with four additional capital contributions of $10,000 due each year that follows.
What other Fees are there?
An annual membership investment fee of $1,000 per Member will be paid to Next Act Fund and applied towards Next Act Fund expenses during the term of the company.
How often should I expect distributions?
In general, distributions will be made to the Members pro rata in accordance with their Units. In addition, distributions for the sale of a Portfolio Company may be held in escrow and released only subject to the terms of any purchase or sale agreement.
Are the Units registered?
No. The Units are not registered under Federal or state securities laws. Prospective investors must recognize that the Units are being offered and sold pursuant to an exemption from the registration requirements of the Securities Act and state securities laws and have been approved or disapproved by the Securities and Exchange Commission or any states commissions.
What commitments does the Next Act Fund currently have?
Next Act Fund will commit at least $30,000 each year for five years to the Enova fund, a Bluetree Angel Fund.