Ironwood Multi-Strategy Fund Launches Semi-Annual Unit Repurchase Program

The offer gives investors a chance to exit holdings but imposes early withdrawal fees and delayed payments.

August 28, 2025

Ironwood Multi-Strategy Fund LLC is offering investors a chance to redeem some of their holdings as part of its semi-annual repurchase program. The deadline to submit tender requests is September 26, 2025, with repurchases priced at net asset value (NAV) as of December 31.

This repurchase offer is structured to align with a corresponding offer from the affiliated Ironwood Institutional Multi-Strategy Master Fund LLC. Since the feeder fund holds over 50% of the master fund, its ability to repurchase units depends on how much is redeemed at the master level. Depending on demand, Ironwood could repurchase between 20% and 39.1% of its own units.

Timing and Eligibility

Investors can submit their Request to Tender Forms up until 11:59 p.m. EDT on September 26. Units can be withdrawn any time before this deadline. After that, withdrawal is only allowed at the fund’s discretion. The repurchase date that determines pricing is set for year-end.

Any member can choose to tender all or part of their investment. But if only part is submitted, at least $25,000 must remain in the account. The fund may reduce a repurchase to meet this threshold.

Repurchase Mechanics and Payments

Units will be repurchased at NAV, minus a 5% Early Repurchase Fee for positions held less than a year. Payments are made through non-interest-bearing promissory notes. Members redeeming less than 95% of their balance will receive one note, payable within 30 days or shortly after capital is received from the master fund.

If 95% or more of an investor’s units are redeemed, the payment is split into two stages:

Initial Payment: 95% of the estimated NAV, delivered shortly after the repurchase date.

Subsequent Payment: Up to the remaining 5%, delivered after final NAV is calculated. This can take up to 120 days or longer.

Cash is the expected form of payment, but Ironwood reserves the right to make distributions in-kind using underlying securities—though this is considered unlikely and would only apply in rare situations that affect the fund’s ability to pay in cash.

Tax Treatment

For U.S. taxpayers, redemptions are usually treated as capital transactions, though in some cases they could be taxed as dividends. The final outcome depends on how much of the member’s ownership is being redeemed and their overall holdings. Investors should consult their tax advisors to understand specific implications, including possible withholding or reporting requirements.

Non-U.S. investors may face U.S. withholding unless they file the appropriate forms and qualify for an exemption.

Operational Considerations

The fund expects to spend around $73,000 on legal, printing, and mailing costs for the offer. It doesn’t currently plan to borrow to finance the repurchase, but the master fund could consider it based on redemption activity and market conditions. If necessary, fund holdings may be liquidated to raise cash.

Members who don’t redeem could see their proportional ownership increase slightly. That comes with increased exposure but doesn’t alter the fund’s investment strategy.

Looking Ahead

This repurchase offer is part of Ironwood’s regular liquidity cycle. Units that are bought back will be retired. For investors who are not accepted or who missed the deadline, future offers will provide another opportunity—but no requests carry forward or get priority.

The mechanics are familiar, the terms are clear, and the timing gives investors a defined window to act. For those seeking liquidity, the opportunity is now.