This is a YouTube video titled "What Are The Liquidity Options for 37th Parallel Investments?" containing a discussion about investment liquidity options, early liquidation events, and fund illiquidity. The content features multiple speakers discussing financial topics related to 37th Parallel Investments, with a disclaimer noting the hosts are not licensed financial professionals. The video was created in January 2025.
Let's talk about liquidation events you mentioned. Sometimes it ends up, you know, a ten year deal ends up ending in three or four. How much variation should investors expect to see there? How often does it liquidate early? How often does it go past 10 years?
We haven't had any go past 10. I would say the, I think the general, you should generally think 5 to 7, I think is probably the fairest estimate. And if they go sooner, they're going to be going at a very, very. It'll, it'll be. Have been a fantastic. Because it's not the way we're buying. It would be anomalous to have a submarket shift on you so much in a three year window that you're like, hey, we need to get out. So really the early sales are really a function of the fact that someone was willing to buy at a level we didn't expect and it would be dumb for us not to take that.
Let's talk about liquidity options during the hold period. Obviously the paperwork says there's no guaranteed liquidity. Practically speaking, how often, often does a person or their estate actually get a liquidity option?
We get requests probably four or five times a year. Typically they're due to hardship if they're on a single asset deal because we do both single assets and fund. If they're in a single asset project, it's more often than not they're able to sell and get back what they invested. They'll basically sell it parents and we have that occur, like I said, a few times a year. The way the process will work is we can't guarantee a market and you kind of don't want us to because that means we have to hold dollars that aren't working for you just to create liquidity. But what'll happen is there'll be. The investment group gets offered and this is in the LLC document this person would like to sell. Here's the amount if you're interested, let me know. We'll put the two together, help them complete the transaction and then they're out. So it doesn't happen very often, but it does happen. And on the fund side those are trickier. Typically we don't see a lot of fund liquidations. If it's in a fund vehicle, you should expect that illiquidity to be a stronger feature.
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