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Fund risks
- Shares are not listed on any securities exchange, and it is not anticipated that a secondary market for Shares will develop. Shares are subject to limitations on transferability, and liquidity will be provided only through limited repurchase offers. Although C-SPEF may offer to repurchase Shares from time to time, Shares will not be redeemable at an investor’s option nor will they be exchangeable for shares of any other fund. As a result, an investor may not be able to sell or otherwise liquidate his or her Shares. The Adviser intends to recommend that, in normal market circumstances, C-SPEF’s Board conducts quarterly repurchase offers of no more than 5% of C-SPEF’s net assets.
- An investment in C-SPEF is not suitable for investors who may need the money they invested in a specified timeframe. The frequency and timing of any repurchase offers are subject to the discretion of C-SPEF’s Board. There can be no assurance that C-SPEF will conduct repurchase offers in any particular period and shareholders of C-SPEF (“Shareholders”) may be unable to tender Shares for repurchase for an indefinite period of time. See “Transfer of Shares and Repurchase of Shares in fund prospectus”.
- Shares are speculative and involve a high degree of risk, including the risks associated with leverage.
- Shares are subject to substantial restrictions on transferability and resale and may not be transferred or resold except as permitted under C-SPEF’s Second Amended and Restated Declaration and Agreement of Trust (the “Declaration of Trust”). See “See Transfer Restrictions in fund prospectus”.
- The amount of distributions that C-SPEF may pay, if any, is uncertain.
- C-SPEF may pay distributions in significant part from sources that may not be available in the future and that are unrelated to C-SPEF’s performance, such as offering proceeds, borrowings, and amounts from C-SPEF’s affiliates that are subject to repayment by investors.
- C-SPEF’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to C-SPEF for investment. Any capital returned to Shareholders through distributions will be distributed after payment of fees and expenses.
- A return of capital to Shareholders is a return of a portion of their original investment in C-SPEF, thereby reducing the tax basis of their investment. As a result from such reduction in tax basis, Shareholders may be subject to tax in connection with the sale of Shares, even if such Shares are sold at a loss relative to the Shareholder’s original investment.
