The CAZ Strategic
Opportunities Fund

Unique Access to
Diversified Alternative Investments

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The Strategy

The Overview

A Deep Dive

Founded in 2001, CAZ has grown to become one of the top 200 allocators to Private Equity worldwide.1 With over $7 billion in assets under management and a global network of investors, we utilize our collective purchasing power to allow for greater access to private markets.

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By the Numbers

(as of 09/30/2024)

  • 8.20%

    Inception-to-Date Returns
    (Inception 3/1/24, Class I Returns)

  • $150M+

    Total Fund Assets

  • $21.64

    Current NAV Per Share Class I

  • $8B+

    Over $8 Billion in total assets under management with CAZ Investments

  • 23+

    Years in Business

Fact Sheet

Latest Fund Update

Why Private Markets?

Since 1986, Private Equity has been one of the best performing asset classes in the U.S.

Since 1986, Private Equity* (the buying, growing and selling of privately owned businesses) has been one of the best performing asset classes in the U.S., producing over 50% higher annualized returns than the S&P 500.1

On a global level, Private Equity has substantially outperformed global stock markets over various time periods over the last 25 years.

Private equity and public equity differ in several aspects. Private equity investments typically involve higher costs and expenses, including management fees and carry fees, due to the active involvement in the companies and the longer investment horizon. In contrast, public equity is generally more liquid, allowing investors to buy and sell shares on exchanges easily, whereas private equity investments are illiquid. Public equities are subject to market fluctuations and regulatory oversight, while private equity can offer more stability through active management. Furthermore, private equity can feature more significant fluctuations in principal and return, as the performance is driven by the success of individual investments, while public equity returns are more directly influenced by market conditions and can be volatile in the short term.

Individual Investors have minimal exposure to Alternative Investments.

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FUND FACTS

The Strategic Opportunities Fund by the Numbers

The CAZ Strategic Opportunities Fund seeks to eliminate the many traditional barriers to entry by giving investors access to a broad portfolio of private investments with a low minimum and increased liquidity.

The fund seeks to comprise a minimum of 8-15 low or non correlated types of assets. This simply means that the investments are unlikely to move up or down in unison. Research done by Ray Dalio and Nobel Laureate Harry Markowitz, has shown that a portfolio with numerous uncorrelated investments can help reduce risk by as much as 80% while providing the opportunity for even greater upside potential.

The CAZ Strategic Opportunities Fund is structured as a registered vehicle (also called a tender offer fund), that aims to provide long term returns using growth oriented private equity investments and yield generating private credit investments across various market segments, geographies, industries. The balance of the fund includes a diverse set of liquid assets and credit solutions to target greater liquidity for the fund while also providing growth potential and additional portfolio income.

Liquidity for the fund's shares will be provided only through quarterly repurchase offers in an amount up to 5% of the fund's net asset value, and there is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. Additionally, repurchases will not begin until the fifth full calendar quarter after the fund has commenced operations. Furthermore, due to these restrictions, an investor should consider an investment in the fund to be of limited liquidity.

  • $25,000

    Minimum Investment - No Maximums

  • Quarterly7

    Liquidity

  • 1099 Yearly

    Simplified Tax Reporting

  • Qualified

    & non-qualified accounts (IRA, Roth,
    Rollover)

  • Monthly

    Investments Accepted

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Materials

FAQ

  • What is the philosophy behind the design of the Fund?

    The approach of the Strategic Opportunities Fund is to utilize mostly private market investments (Private Equity and Private Credit) to achieve greater diversification. Nobel Prize winner Harry Markowitz showed that having different types of investments can potentially increase returns while lowering risks. Ideally, those investments have low or no correlation meaning they do not move up or down in unison. We believe that a portfolio with only publicly traded investments (i.e. stock and bonds) doesn't provide the necessary exposure for creating a well-diversified portfolio.

  • Can individuals who are non-accredited participate in the CAZ Strategic Opportunities Fund?

    Currently, non-accredited investors are not able participate however Congress may soon pass legislation that aims to make it easier for people to become accredited investors by taking a test. The bill, already passed in the House and now headed to the Senate, would expand the criteria beyond just net worth and income. If it passes, it would lower barriers to entry for more people to participate. Please be sure we have your email address, and we will notify you if/when that bill passes Congress.

  • Why don't more investors have access to Private Equity, Private Credit and other alternative investments?

    For decades, the world of Private/Alternative Investments has been fueled by the largest investors - endowments, sovereign wealth funds, public pension systems and the ultra-high net worth. Since investments like Private Equity and Private Credit are often limited in capacity, individual investors often lack access. In fact, most individual investors have only 3% of their portfolio allocated to alternative investments. The CAZ Strategic Opportunities Fund aims to provide greater access to these markets.

  • What are the benefits for investors in the CAZ Strategic Opportunities Fund?

    CAZ has over 23 years of experience investing n the private markets and is one of the world's top 200 allocators to Private Equity. Our purchasing power gives us greater access to opportunities in Private Equity, Private Credit, Private Real Estate and more. The fund aims to provide diversification across major themes in the private markets (i.e. Healthcare, Technology, Professional Sports Ownership, GP Stakes, Private Credit etc..). The vehicle also aims to provide flexibility for investors with low minimum investment thresholds and quarterly liquidity (through a tender offer process). The fund allows for monthly subscriptions (for adding additional capital) as well as simplified tax reporting via a single 1099.

  • Who is the manager/advisor of the fund?

    CAZ Investments Registered Adviser, LLC acts as the investment advisor to the fund itself. The advisor is registered with the SEC and is a subsidiary of CAZ Investments LP, which was founded in 2001 and is now one of the largest 200 allocators to private equity in the world.

  • What is the legal structure of the Fund?

    SOF is a closed-end, evergreen tender offer fund registered under the Investment Company Act of 1940 and the Securities Act of 1933.

  • What distinguishes closed-end from open-end funds?

    Closed-end funds have a fixed number of shares, while open-end funds (i.e. most traditional mutual funds) can accommodate unlimited investors. The CAZ Strategic Opportunities Fund is a closed-end fund. Generally speaking, a closed-end fund has higher minimums and requires investor accreditation, which enables it to invest in a broader range of assets and asset classes.

  • Discuss CAZ's experience as an allocator to the private markets:

    In the past 10 years alone, CAZ has committed approximately $6B to private market investments. CAZ has a realized/unrealized gain on 94% of the private investments we have made, over 20+ years of investing (as of 6/30/2023). The Team has substantial experience across GP stakes, buyout, venture capital, private credit, real estate, energy, and healthcare.

  • What is the process for liquidating some or all of my investment?

    Investors can participate in a quarterly tender process where the Fund offers to buy up to 5% of its shares at Net Asset Value (subject to Board approval). For clarity, investors can liquidate 100% of their investment via each tender, so long as the total fund redemptions do not exceed 5% of the fund value. Note that there is a 2% early repurchase fee on any redemptions that occur within an investor’s first year of investing in the Fund. If applicable, that fee is payable to the Fund and for the benefit of all the investors the Fund.

  • How is this fund different than other funds?

    CAZ has over 23 years of experience investing in the private markets and is one of the world's largest 200 allocators to Private Equity. Our purchasing power gives us notable access to opportunities in Private Equity, Private Credit, Private Real Estate and more. The fund aims to provide diversification across major themes in the private markets (i.e. Healthcare, Technology, Professional Sports Ownership, General Partner Stakes, Private Credit etc..). The Fund also aims to provide flexibility for investors with low minimum investment thresholds and quarterly liquidity (through a tender offer process). The fund allows for monthly subscriptions (for adding additional capital) as well as simplified tax reporting via a single 1099.

  • How often can an investor add money to their investment in the Fund?

    Investors can add money to the Fund on the first business day of each month.

  • What is an Accredited Investor and do I have to be one in order to invest in the Fund?

    Yes, an investor must qualify as an Accredited Investor, which is defined as an investor with an annual income of at least $200,000 ($300,000 if filing jointly) for each of the last two years OR a net worth exceeding $1 million (excluding the primary residence).

  • Does the fund intend to make periodic distributions?

    Yes, the Fund plans to distribute dividends once per year from its net investment income and realized capital gains. Distributions are not guaranteed.

  • Can investors choose between receiving or reinvesting distributions?

    Investors can choose to either receive 100% of dividends in cash or reinvest 100% of them in additional Fund shares. If an investor does not specify, dividends and capital gains will automatically be reinvested.

Investors should consider the investment objectives, risks, and charges and expenses of the Fund(s) before investing. The prospectus {and, if available, the summary prospectus,} contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained at (855) 886-2307 or www.cazstrategicopportunitiesfund.com.

The Fund should be considered a speculative investment and entails substantial risks,and a prospective investor should invest in the Fund only if it can sustain a complete loss of its investment.

Risk Considerations

Investing involves risk, including loss of principal. The value of the fund's shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results.

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.

There is a risk that issuers and counterparties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund.

Equity securities are subject to market, economic and business risks that may cause their prices to fluctuate.

Fixed income investments are affected by a number of risks, including fluctuation in interest rates, credit risk, and prepayment risk. In general, as prevailing interest rates rise, fixed income prices will fall. The Fund is newly formed and has no operating history.

The CAZ Strategic Opportunities Fund is distributed by Ultimus Fund Distributors, LLC, Member FINRA/SIPC.

CAZ Investments does not provide tax advice. Please consult your tax advisor before making any decisions or taking any action based on this information.

Diversification does not ensure a profit or guarantee against loss.

CAZ Investment Registered Adviser, LLC is not affiliated with “Ultimus Fund Distributors, LLC.”

Sources & References

  1. Source: Preqin.
  2. The index is a horizon calculation based on data compiled from 1,505 funds, including fully liquidated partnerships, formed between 1986 and 2022. Private indexes are pooled horizon Internal rate of return (IRR) calculations, net of fees, expenses, and carried interest. CA Modified Public Market Equivalent (mPME) replicates private investment performance under public market conditions. The public index’s shares are purchased and sold according to the private fund cash flow schedule, with distributions calculated in the same proportion as the private fund, and mPME NAV is a function of mPME cash flows and public index returns. “Value-Add” shows (in basis points) the difference between the actual private investment return and the mPME calculated return. Constructed Index: MSCI World/MSCI All Country World Index: Data from 1/1/1986 to 12/31/1987 represented by MSCI index gross total return. Data from 1/1/1988 to present represented by MSCI ACWI gross total return. The timing and magnitude of fund cash flows are integral to the IRR performance calculation. Public indexes are average annual compounded return (AACR) calculations which are time weighted measures over the specified time horizon and are shown for reference and directional purposes only. Due to the fundamental differences between the two calculations, direct comparison of IRRs to AACRs is not recommended. Sources: Cambridge Associates LLC, MSCI, Standard & Poor’s. Source: Cambridge and Associates. Information is subject to change and is not a guarantee of future results.
  3. Source: www.cnn.com. Article published June 9, 2023.
  4. Source: Preqin, World Federation of Exchanges
  5. Source: Capital IQ (January 2022)
  6. Source: Preqin Global Report 2022, Hodes Weill & Associates: Institutional Real Estate Allocations Monitor and UBS Global Family Office Report 2022, Neuberger Berman, Oliver Wyman, Morgan Stanley Research. Analytics as of March 31, 2021. Private markets include private equity, venture capital, private debt, real estate and infrastructure. High net worth: $1 – 50 million investable wealth. Ultra-high net worth: over $50 million investable wealth. Analytics as of March 31, 2021.
  7. The Adviser intends to recommend quarterly repurchases of up to 5% of the Fund’s outstanding shares, subject to Board of Trustees approval; 2% early repurchase fee imposed for repurchases within one year of investment. Investors may not be able to fully liquidate investments for a long period of time and should not invest money needed in the near- to medium-term.

Definitions

The Burgiss Global Private Debt Funds Index is comprised of global funds in all private debt categories including generalist, senior, mezzanine, distressed, unclassified and unknown.

The Bloomberg Global- Aggregate Index is a flagship measure of global investment grade debt from a multitude of local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging market issuers.

The ICE BofA Global High Yield Index tracks the performance of USD, CAD, GBP and EUR denominated below investment grade corporate debt publicly issued in the major domestic or Eurobond markets.

A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves. SWFs provide a benefit for a country's economy and its citizens.

Tender offer funds are continuously offered closed-end funds that are not listed on a stock exchange and seek to provide investors with liquidity by offering to repurchase a percentage of their outstanding shares.

Net Asset Value is the net value of an investment fund's assets less its liabilities, divided by the number of shares outstanding.