Regulatory Disclosures
Important Regulatory Information
1. Registration and Regulatory Status
Foresight Capital Group operates as a private fund adviser. Investment offerings made through Foresight Capital Group rely on exemptions from registration under the Securities Act of 1933, as amended (the "Securities Act"), and the Investment Company Act of 1940, as amended (the "Investment Company Act").
2. Rule 506(c) Compliance
Foresight Capital Group relies on Rule 506(c) of Regulation D for its private placement offerings. Under Rule 506(c):
- General solicitation and advertising are permitted
- All purchasers must be accredited investors
- The issuer must take reasonable steps to verify accredited investor status
- Securities are "restricted securities" under Rule 144 of the Securities Act
3. Accredited Investor Verification
Foresight Capital Group will verify accredited investor status using one or more of the following methods:
- Review of income documentation (tax returns, W-2s, pay stubs)
- Review of net worth documentation (bank statements, brokerage statements, appraisals)
- Third-party verification services
- Written confirmation from registered broker-dealers, SEC-registered investment advisers, licensed attorneys, or certified public accountants
- Existing investor status (for certain prior investors)
4. Securities Restrictions
Securities offered by Foresight Capital Group have not been registered under the Securities Act or any state securities laws. These securities are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act and applicable state securities laws.
Investors should be prepared to bear the economic risk of an investment for an indefinite period of time. There is no public market for the securities, and none is expected to develop.
5. International Investors
For investors outside the United States, offerings may be made in reliance on Regulation S under the Securities Act or other applicable exemptions. Non-U.S. investors must comply with all applicable laws and regulations in their jurisdiction of residence.
Foresight Capital Group does not offer securities in any jurisdiction where such offer would be prohibited or would require registration or licensing that has not been obtained.
6. Material Risks
Investments in private funds involve substantial risks, including but not limited to:
- Loss of Capital: You may lose your entire investment
- Illiquidity: There are significant restrictions on redemptions and transfers
- Leverage: Use of leverage may magnify losses
- Concentration: Investments may be concentrated in specific sectors or assets
- Valuation: Private assets are difficult to value and valuations may be subjective
- Conflicts of Interest: The general partner and its affiliates have conflicts of interest
- Fees and Expenses: Management fees and expenses will reduce returns
- Tax Complexity: Investments may have complex tax implications
- Regulatory Risk: Changes in laws and regulations may adversely affect investments
This is not an exhaustive list of risks. Please carefully review the offering documents for a complete discussion of risks.
7. Fees and Expenses
Private funds managed by Foresight Capital Group typically charge:
- Management fees based on committed capital or net asset value
- Performance-based allocation (carried interest) on realized profits
- Organizational and offering expenses
- Operating expenses of the fund
Specific fee structures and expenses will be disclosed in the offering documents for each fund.
8. Conflicts of Interest
Foresight Capital Group and its affiliates have conflicts of interest in managing the funds, including:
- Allocation of fees and expenses among funds and accounts
- Allocation of investment opportunities among funds and accounts
- Time and resources devoted to different funds and accounts
- Valuation of portfolio investments
- Related party transactions
These conflicts will be disclosed in detail in the offering documents, along with policies and procedures to manage such conflicts.
9. ERISA Considerations
Investors that are employee benefit plans subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or other retirement plans or accounts subject to Section 4975 of the Internal Revenue Code should consult with their advisers regarding the suitability of an investment and potential prohibited transaction and other ERISA-related issues.
10. Anti-Money Laundering and KYC
Foresight Capital Group has implemented anti-money laundering ("AML") and know-your-customer ("KYC") procedures in accordance with applicable laws and regulations. All investors will be required to provide identification and verification documents as part of the subscription process.
11. Updates to Disclosures
The information on this page is subject to change. Foresight Capital Group will update regulatory disclosures as necessary to reflect material changes in its operations or regulatory environment. Investors will be notified of material changes as required by applicable law.
12. Contact for Regulatory Matters
For questions regarding regulatory matters or compliance, please contact:
Foresight Capital Group
Compliance Department
Email: compliance@foresightcg.com