Procida Funding & Advisors, LLC has announced that it has received unanimous approval and consent to convert its previously close-ended investment vehicle, the 100 Mile Fund, to an open-ended fund, among other amendments.
The 100 Mile Fund — which concentrates on real estate, particularly distressed and half-built construction, in the 100-mile vicinity of New York City — was scheduled to expire actively investing on December 31, 2014 and then begin liquidation.
The fund has totaled $170 million in transactions since its 2011 founding, $50 million of which has already been monetized.
Founder Billy Procida, who is 100 Mile’s largest investor, was driven to convert the fund to open-ended by the significant interest in rollover from existing members as well as the ability to accommodate growing new membership.
“As the fund’s manager, I felt strongly that the interests of all investors, including myself, were not going to be best served going from Fund I to Fund II to Fund III and so on,” said Procida. “We can now affirmatively attract and allow new investors because they don’t have to worry about the fund sun-setting. It is very gratifying that every single member agreed.”
The amendments will now allow members invested in the fund for a minimum of one year to request redemption at several stipulated points throughout the year, which they could not do before.
The maximum fund size has also changed — quadrupling from $25 million to $100 million. The minimum investment per member will double from the original $100,000 investment to a $200,000 minimum. Both are atypically low numbers friendly to small and medium size investors.
In order to officially amend the operating agreement, Procida required the consent of members holding no less than 75 percent of the fund’s percentage interests; Procida got 100 percent written consent from all members.
Fund investor Mike Gedoff said, “It’s not often you see a real estate focused fund that is predominantly debt oriented averaging 15 percent returns. Plus, I feel comfortable knowing that Billy has his skin in the game.”