Risk Summary LP Funds

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Risk Summary for CS Capital Funding's LP Funds

 

Estimated reading time: 2 min

 

Investing in CS Capital Funding's LP funds entails inherent risks, and it is essential to fully understand these risks before making investment decisions. The Financial Conduct Authority (FCA) classifies this type of investment as highly complex and high risk. Here's a summary of the key risks:

 

  1. Risk of Losing Your Investment

- There is a significant risk that you may lose the entire amount you invest if the business associated with this investment fails. Such businesses often employ risky investment strategies.

- Indicative rates of return are not guaranteed. If the fund manager fails to achieve the expected returns, you may earn less than anticipated or even incur losses.

 

  1. Limited Protection in Case of Issues

- Investments in unregulated collective investment schemes are not covered by the Financial Services Compensation Scheme (FSCS) in the event of claims against failed regulated firms.

- The Financial Ombudsman Service (FOS) protection does not extend to poor investment performance. Complaints against FCA-regulated firms may be considered by FOS, but this does not cover investment returns.

 

  1. Limited Liquidity and Long-Term Investment

- This type of investment is inherently illiquid and should be considered by investors with a long-term investment horizon.

- Early withdrawal of funds may not be possible, and if permitted, it may involve exit fees or additional charges.

 

  1. Complexity of the Investment

- CS Capital Funding's LP funds often involve complex structures based on other high-risk investments. This complexity can make it challenging for investors to track the allocation of their funds.

- Assessing the exact level of risk associated with this investment can be difficult, but it is likely to be high. Seeking financial advice before investing is advisable.

 

  1. Diversification is Key

- Concentrating all your capital into a single business or type of investment carries significant risks. Diversifying your investments across various assets reduces your dependency on any single investment's performance.

- A general guideline is not to allocate more than 10% of your capital to high-risk investments.

 

We encourage all potential investors to thoroughly consider these risks and to seek professional financial advice as necessary. For additional information on protecting your interests, please visit the FCA's website here If you wish to learn more about unregulated collective investment schemes (UCIS), you can find further resources on the FCA's website here