Peachtree Fund Announces Tender Offer and Strategic Changes Ahead of Adviser Ownership Shift

Alternative Strategies Fund opens a limited tender offer for shareholders, while preparing for significant shifts in its adviser’s ownership structure.

October 17, 2024

Overview of the Tender Offer

Peachtree Alternative Strategies Fund has initiated a tender offer for shareholders to sell up to 10% of the Fund's net asset value. This opportunity, which will remain open until November 15, 2024, applies to those holding Institutional Shares. Investors participating will receive a cash payment based on the net asset value (NAV) of their shares at the end of December 2024, with an initial payout within 35 days after valuation.

The Fund has outlined that shareholders must maintain a minimum balance of $25,000 after the sale. If this threshold isn’t met, the shareholder will need to fully liquidate their position. To finance the repurchases, Peachtree will use its liquid assets and securities sales, avoiding any borrowing.

The offer also provides shareholders the flexibility to withdraw their tender until the expiration date. If the demand exceeds the 10% cap, repurchases will be made on a pro-rata basis, ensuring fair distribution.

Strategic Implications of the TPG Growth Transaction

Alongside the tender offer, Peachtree’s adviser, HB Wealth Management, is finalizing a deal to sell a minority stake to TPG Growth, a prominent private equity firm. This transaction is set to close around November 15, 2024, and is expected to shift the adviser's ownership structure. However, no immediate operational changes are anticipated, with the same portfolio management team continuing to oversee the Fund.

Although the change in ownership requires new advisory agreements to be approved by the Fund's Board of Trustees and shareholders, HB Wealth Management has committed to maintaining its management fee waivers and expense reimbursements. This is intended to minimize disruptions and retain investor confidence during the transition. Shareholders will vote on these agreements in December 2024.

For investors, this ownership change may have longer-term implications for the Fund’s management approach, as TPG Growth's involvement could shape future strategy. Nonetheless, in the near term, the adviser has reassured shareholders that no significant deviations from the current strategy are expected.

Looking Ahead: A Period of Transition

With these changes on the horizon, Peachtree Alternative Strategies Fund finds itself in a period of transformation. The tender offer gives shareholders an opportunity for liquidity, while the ownership change introduces new dynamics that may influence the Fund's future direction. Remaining shareholders will need to consider the potential for reduced assets and increased risks, while also monitoring how TPG Growth’s presence may affect the adviser's long-term vision.

As these events unfold, both current and potential investors will be closely watching Peachtree’s performance and strategy, particularly as the year-end valuation and key transition dates approach.