Northwest Quadrant Opportunity Fund, LLC

Min. Invest
$25,000
Target Hold
60 mo
IRR
18.00%
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The Northwest Quadrant Mission Statement

Whether or not you invest with us, our mission is to educate and empower you with the knowledge and the information that can help you make an informed investment decision, because we believe a well-informed investor is a successful investor.

Investment Type Equity
80/20 Waterfall Participation
Term 60 Months
Raise Amount $5,000,000
IRR 18%

Business Summary

Northwest Quadrant Opportunity Fund, LLC seeks to find excess investment returns - what is called Alpha in the field of finance. Excess Investment Returns (Alpha) are rates of return above the fair rate of return that would be predicted by risk models. The Fund will seek assets and asset classes that produce excess investment returns by looking for them in inefficient capital markets and other places where these assets can be found. The Fund intends to be a manager of investment managers that specialize in each of the asset classes in which the Fund seeks to invest. The Fund will seek investment managers that, in the Fund’s opinion, manage these assetsand asset classes extremely well. The Fund may also invest in individual assets.

The Fund is a boutique investment firm that seeks to find unique, opportunistic investments. Our investment reach is extensive: we invest in multiple asset classes; in multiple asset class managers who are experienced in their fields and who have demonstrated track records; and because we are investing in multiple asset classes and with multiple managers that have portfolios with many assets, we expect to be a very diversified fund. We know and are actively involved with the managers of our investments. These are not just passive investments.

Northwest Quadrant Opportunity Fund Goals

By utilizing and leveraging our more than 38 years of experience in portfolio management, investment due diligence, and our extensive network in the alternative investment arena, Northwest Quadrant Opportunity Fund, LLC is able to engineer and construct a powerful investment vehicle that seeks to provide low-risk and high-return investments. We do this with our Double Alpha Strategy of: 

    1. Picking highly qualified asset managers; and
    2. Diversifying across asset classes, individual assets, and asset managers.

Our objective is to build a diversified portfolio of strong, solid, steady- performing assets, with highly qualified asset managers who have proven track records that meet our underwriting requirements.

The Goals of the Northwest Quadrant Opportunity Fund, LLC are:

  • Generation of Cash Flow
  • Preservation of Capital
  • Asset Appreciation 
  • Achieving Potential Tax Benefits

Why Should You Invest With The Northwest Quadrant Opportunity Fund?

What makes alternative investments so attractive is the high returns relative to other investments and the low correlation that they often have with the stock market and other investments.

When most people think of investing, they normally think of the stock and bond markets. That’s because the news media is filled with information about what’s happening in the stock market.

On the other hand, alternative investments never receive the amount of press coverage that large companies that trade on the stock market get. This lack of media coverage is one of the reasons why it’s more challenging to find great alternative investments. Furthermore, there are only a few specialized marketplaces where investors can find alternative investments. And most investors don’t have the research and due diligence resources and experience to thoroughly vet these investments in order to make a well-informed investment decision.

We believe that alternative investments, for suitable investors, can be used to get higher returns and to better diversify investment portfolios in order to mitigate the investment risks associated with publicly-traded equities and bonds. The Northwest Quadrant Opportunity Fund, LLC may be suited for investors seeking the potential for:

      • Regular Cash Distributions
      • Preservation of Capital
      • Asset Appreciation
      • Portfolio Diversification
      • Higher Overall Returns

The Four Important Steps We Follow When Constructing Our Portfolios

  1. We survey the entire universe of alternative investments and pick what we believe are the best asset classes and individual assets.
  2. From there we pick investments from asset managers who we believe are proven performers and who offer the best potential for future performance.
  3. Then our due diligence partners inspect and thoroughly vet the sponsors and the investments.
  4. We then construct our portfolio from the chosen asset classes, asset managers, and individual assets.

The fundamental mission of the Northwest Quadrant Opportunity Fund, LLC is to create Intrinsic Value for our investor partners. While intrinsic value may be an unfamiliar term to some people, intrinsic value can be thought of simply as shareholder value.

We create intrinsic value with our Double Alpha Strategy of:

    1. Picking highly qualified asset managers; and
    2. Diversifying across asset classes, individual assets, and asset managers.

 Dr. Wendee is a recognized expert on intrinsic value and shareholder value creation. For more information on intrinsic value and shareholder value creation, please visit the Intrinsic Value Wealth Report Newsletter.

Documentation


Your Portfolio and Diversification

Diversification is one of the most essential strategies in protecting your investment portfolio. When investment advisors speak of diversification in a portfolio, they typically are referring to an allocation of 60% in stocks and 40% into a combination of bonds and cash. While that does provide a level of diversification, that still leaves considerable risk when there are swings in the market.

On the other hand, True Diversification can reduce your risk dramatically.

The Double Alpha Strategy and True Diversification

True Diversification

True Diversification achieves portfolio returns while substantially reducing portfolio risk.

How does True Diversification work?

In our Double Alpha Strategy portfolios, we acquire 10 to 15 alternative assets that are low-correlated or non-correlated with each other and other asset classes

Click here to watch this video and  see exactly how non/low-correlated investments work.

The graphic below is an example of how low-correlated and non-correlated investments interact with each other to reduce risk as demonstrated in this video, Click here to view the video.

A Well-Balanced Portfolio With True Diversification Can Reduce Your Risk Dramatically

 

Click here to watch this video

Watch the explanation how non/low-correlated investments work.

 

The chart pictured above demonstrates how the combined risk of

non/low-correlated assets interact with each other.  

This model assumes that:

    • All the assets have a 10% return with different levels of correlation.
    • Assets have a correlation range of 60% down to a 0%.
    • A one-asset portfolio has a 10% return and a 10% risk factor.
    • As more investments are added with low  correlation, the curved lines demonstrate how the portfolio risk is reduced.  

This chart demonstrates how having assets with low or non-correlation in a portfolio reduces the risk of a portfolio. The lower the correlation and the more assets that are added, the lower the portfolio risk. The formula to calculate the standard deviations and correlations between the assets is very complex and requires an extensive algorithm.

The Northwest Quadrant Opportunity Fund, LLC intends to

Invest in 10-15 low-correlated or non-correlated assets managed by asset managers experienced in various alternative asset classes.

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Investor Tutorial

CERTAIN INFORMATION REGARDING THIS OFFERING

THESE UNITS ARE BEING OFFERED WITHOUT REGISTRATION UNDER ANY FEDERAL OR STATE SECURITIES LAWS, BUT ARE BEING OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER COMPARABLE EXEMPTIONS UNDER VARIOUS STATE SECURITIES LAWS. HOWEVER, THE SECURITIES AND EXCHANGE COMMISSION (“COMMISSION”) HAS NOT DETERMINED THAT THESE UNITS ARE EXEMPT FROM REGISTRATION. THESE UNITS HAVE NOT BEEN REVIEWED, APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY, ADEQUACY, COMPLETENESS OR MERITS OF THIS MEMORANDUM, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL TO, OR A SOLICITATION OF AN OFFER TO BUY FROM, NOR SHALL ANY OF THE UNITS BE OFFERED OR SOLD TO, ANY PERSON IN ANY JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION, PURCHASE, OR SALE IS UNLAWFUL OR UNAUTHORIZED UNDER THE SECURITIES LAWS OF SUCH JURISDICTION.

THE STATEMENTS MADE HEREIN ARE MADE AS OF THE DATE ON THE COVER OF THIS OFFERING MEMORANDUM. THIS OFFERING MEMORANDUM CONSTITUTES AN INVITATION TO THE PROSPECTIVE INVESTOR TO SUBMIT AN OFFER TO SUBSCRIBE. NO PERSON MAY PURCHASE THE UNITS OFFERED HEREBY EXCEPT PURSUANT TO AN EXECUTED SUBSCRIPTION AGREEMENT IN THE FORM PRESCRIBED BY THE FUND, AND THEN ONLY FROM A PERSON TO WHOM THE FUND OR ITS DESIGNATED AGENT HAS DELIVERED A COPY OF THIS OFFERING MEMORANDUM.

THESE UNITS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY THE FUND. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THERE IS CURRENTLY NO PUBLIC MARKET FOR THESE UNITS.

IN MAKING A DECISION TO PURCHASE UNITS HEREUNDER, PROSPECTIVE INVESTORS MUST CONDUCT THEIR OWN INDEPENDENT INVESTIGATION OF THE FUND AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, AND ARE ENCOURAGED TO CONSULT WITH THEIR ADVISORS AS THEY WILL BE REQUIRED TO REPRESENT THAT THEY ARE ABLE TO BEAR THE ECONOMIC RISK OF THEIR INVESTMENT AND THAT THEY ARE FAMILLIAR WITH AND UNDERSTAND THE FUNDAMENTAL RISKS AND TERMS OF THIS OFFERING.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT TO THE OFFERING OF THE UNITS WHICH IS NOT CONTAINED OR REFERENCED HEREIN, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. POTENTIAL INVESTORS MAY, IF THEY SO DESIRE, MAKE INQUIRIES OF THE FUND WITH RESPECT TO THE FUND’S BUSINESS OR ANY OTHER MATTERS SET FORTH HEREIN, AND MAY OBTAIN ANY ADDITIONAL INFORMATION WHICH SUCH PERSON DEEMS TO BE NECESSARY IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS MEMORANDUM (TO THE EXTENT THAT THE FUND POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE).

August 08 2020

Confidential Offering Memorandum: Northwest Quadrant Companies

PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO CONSTRUE ANY CONTENTS OF THIS OFFERING MEMORANDUM OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS, AS CONSTITUTING INVESTMENT, LEGAL OR TAX ADVICE; RATHER THEY SHOULD CONSULT THEIR OWN ADVISORS OR COUNSEL WITH THE CAPACITY TO ADVISE AND PROTECT THEIR INTEREST IN CONNECTION WITH ALL MATTERS CONCERNING THIS OFFERING MEMORANDUM.

THIS OFFERING MEMORANDUM DOES NOT KNOWINGLY CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT A MATERIAL FACT, AND ANY SUCH MISSTATEMENT OR OMISSION IS DONE WITHOUT THE KNOWLEDGE OF THE PREPARERS OF THIS DOCUMENT OR THE FUND. AS SUCH THE FUND BELIEVES THAT THIS OFFERING MEMORANDUM CONTAINS A FAIR SUMMARY OF THE MATERIAL TERMS OF ALL MATTERS, DOCUMENTS AND CIRCUMSTANCES MATERIAL TO THIS OFFERING. WHILE THE DATA AND STATEMENTS CONTAINED HEREIN ARE BASED UPON INFORMATION BELIEVED TO BE RELIABLE, NO WARRANTY CAN BE MADE AS TO THE ACCURACY OF SUCH INFORMATION OR THAT CIRCUMSTANCES HAVE NOT CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THIS MEMORANDUM CONTAINS SUMMARIES OF CERTAIN PROVISIONS OF DOCUMENTS RELATING TO THE BUSINESS OF THE FUND AND THE UNITS OFFERED HEREBY, AS WELL AS SUMMARIES OF VARIOUS PROVISIONS OF RELEVANT STATUTES AND REGULATIONS. SUCH SUMMARIES DO NOT PURPORT TO BE COMPLETE AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE ORIGINAL DOCUMENTS, STATUTES AND REGULATIONS.