Overview
The Finite Solar Finance Fund is a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, that seeks to provide total return with an emphasis on current income. The Fund will invest in Solar Finance Assets (defined below) that the Adviser believes offer the potential for regular current yield and capital appreciation, resulting in attractive risk-adjusted total return.
Finite Solar Finance Fund
Ticker: SOLRX
Fund Strategy
The Fund seeks to achieve its investment objective by investing at least 80% of its managed assets in private, alternative lending-related securities issued in connection with solar financing (“Solar Finance Assets”). Solar Finance Assets include credit instruments related to the development, purchase or installation of solar energy equipment, the purchase and lease of renewably generated electricity, and securities of solar industry participants that the Adviser believes offer the potential for regular current yield.
| Minimum Investment | $500 | |
| Purchase Availability | Daily | |
| Liquidity | Quarterly | |
| Management Fee | 1.25% | |
| Gross Expense | 2.51% * | |
| Net Expense | 2.23% ** | |
| Performance Fee | None | |
| Reporting | 1099-DIV | |
| Adviser | Finite Management, LLC |
Management Team
David Kretschmer is a Portfolio Manager of the Fund where he is responsible for the day-to-day management of the Fund and its investments jointly with Kevin Conroy. David serves on the Board of Finite Corporation. David’s career includes 25 years at Anthem, Inc. a Fortune 50 health insurance provider in the US. Throughout his career at Anthem, David was responsible for over $31 billion of investments across multiple portfolios, including $5 billion of 401(k) assets. Prior to Anthem he was on the founding team of Sierra Trust Funds, a family of mutual funds sponsored by Great Western Bank. David holds an MBA from the University of Chicago and a bachelor’s degree in economics from The George Washington University.
Kevin Conroy is a Portfolio Manager of the Fund where he is responsible for the day-to-day management of the Fund and its investments jointly with David Kretschmer. Kevin serves as Chairman and President of Finite Corporation where he leads the firm’s strategic and long-term initiatives. Prior to joining Finite, Kevin was a product manager at Dividend Finance, one of the nation’s largest residential solar loan originators. Kevin began his career within J.P. Morgan’s Investment Bank focusing on corporate restructurings and the management of the firm’s equity portfolio of interests in post-restructured companies. Kevin holds a bachelor’s degree in finance and accounting from Fordham University.
Solar Finance Assets
The Fund seeks to allocate at least 80% of assets into securities and credit instruments related to the solar industry that Finite believes offer attractive opportunities for income and capital appreciation.
Solar Loans
Loans made for financing the development, purchase, and installation of Solar Energy Systems
Solar SPVs
Special Purpose Vehicles (“SPV”) participating in solar-related loans or the sale of power from solar energy systems
Solar Debt and Equities
Debt and equity securities of Solar Originators and publicly traded U.S. Solar Companies
Fund Materials
Investors should read the prospectus carefully before investing. All investors should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. Information regarding such considerations, including the prospectus of the ‘40 Act registered fund may be found below.
Key reasons to consider investing:
1. Access to private credit without investor accreditation status
2. Potential for low market correlation ***
3. Convenient 1099-DIV tax treatment
4. Put your capital to work financing the transition to a low-carbon economy
Are you ready to invest in decarbonization?
* Gross expense is based on the expense limitation implemented and noted within the prospectus. Some expenses are excluded from this and the expense ratio my be greater as a result. Please see the prospectus for more detail.
** The Adviser has entered into an expense limitation and reimbursement agreement with the Fund that is expected to continue for at least two years from the effective date of the Prospectus, and will renew automatically for successive periods of one year thereafter, unless written notice of termination is provided by the Adviser to the Fund not less than 10 days prior to the end of the then-current term. The Expense Limitation Agreement may also be terminated by the Fund’s Board on 60 days’ written notice to the Adviser. There is no guarantee that the Adviser will elect to renew the Expense Limitation Agreement after the first year of the Fund’s operations.
*** Correlation measures the degree to which two securities move in relation to each other (source).
Some of the Risks of Investing in the Fund:
An investment in the Fund is speculative with a substantial risk of loss. Investors should consider their investment goals, time horizons and risk tolerance before investing in the Fund. An investment in the Fund is not appropriate for all investors, and the Fund is not intended to be a complete investment program. See “Risk Factors” within the Prospectus (linked above) to read about the risks you should consider before buying the Fund’s Shares.
The Fund is newly organized, and its Shares are not listed on any securities exchange and no market for the Shares exists or is expected to develop. In addition, the Fund’s investments in Solar Assets will primarily be investments in Solar Loans and other alternative lending-related securities, which have special risks as described in more detail with the Prospectus (linked above).
Before investing, you should read the Fund’s Prospectus regarding the Fund’s risks. These risks include, but are not limited to, those outlined below:
- An investment in the Fund is not suitable for investors who need certainty about their ability to access all of the money they invest in the short term. You may not have access to the money you invest for an extended period of time.
- The Fund has implemented a Share repurchase program, however, the Fund is not required to repurchase more than 5% of its outstanding Shares each quarter. Shares will not be redeemable at a Shareholder’s option nor will they be exchangeable for Shares of any other fund. Investors should therefore consider Shares of the Fund to be an illiquid investment. You should not expect to be able to sell your Shares (other than through the repurchase process), regardless of how the Fund performs.
- Because you will be unable to sell your Shares at the time of your choosing or have them repurchased immediately, you will find it difficult to reduce your exposure on a timely basis during market volatility.
- Although the Fund is not permitted to invest in loans that are of subprime quality at the time of investment, an investment in the Fund’s Shares should be considered speculative and involving a substantial degree of risk, including the risk of loss of investment. There can be no assurance that payments due on loans or other alternative lending-related securities in which the Fund will invest will be made.
- At any given time, the Fund’s portfolio may be substantially illiquid and subject to increased credit and default risk. The Shares therefore should be purchased only by investors who could afford the loss of the entire amount of their investment.
- The Fund intends to accrue and declare dividends daily and distribute them on a quarterly basis; however, the amount of distributions that the Fund may pay, if any, is uncertain. The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Fund’s performance, such as from offering proceeds, and borrowings. A portion or all of any distribution of the Fund may consist of a return of capital and may result in potentially adverse tax consequences to the Fund or its shareholders.
- The Fund’s distribution policy could result in a return of capital, resulting in less of a shareholder’s assets being invested in the Fund and, over time, potentially causing the Fund’s expense ratio to increase.
- The distribution policy also may cause the Fund to sell a security at a time it would not otherwise do so.
- If the borrower of the loan or other alternative lending-related security in which the Fund invests is unable to make its payments on a loan, the Fund may be greatly limited in its ability to recover any outstanding principal and interest due under such loan, as (among other reasons) the Fund may not have direct recourse against the borrower or may otherwise be limited in its ability to directly enforce its rights under the loan, whether through the borrower or the platform through which such loan was originated, the loan may be unsecured or undercollateralized, and/or it may be impracticable to commence a legal proceeding against the defaulting borrower.
- Substantially all of the Solar Assets in which the Fund invests will not be guaranteed or insured by a third party or will not be backed by any governmental authority.
- Prospective borrowers supply a variety of information regarding income, occupation and employment status (as applicable) to the alternative lending platforms that may originate or source loans. As a general matter, platforms do not verify the majority of this information, which may be incomplete, inaccurate, false or misleading. Prospective borrowers may misrepresent any of the information they provide to the platforms.
- Under the 1940 Act, the Fund may utilize leverage through the issuance of preferred stock in an amount up to 50% of its total assets and/or through borrowings and/or the issuance of notes or debt securities in an aggregate amount of up to 33 1/3% of its total assets which could magnify losses as well as gains.. There can be no assurance that any leveraging strategy the Fund employs will be successful during any period in which it is employed.
Neither the SEC nor any state securities commission has approved or disapproved of these securities or determined if this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The Finite Solar Finance Fund is distributed by Foreside Fund Services, LLC. Finite Management, LLC and Foreside Fund Services, LLC are not affiliated.