Fund Overview

The Lower Middle Market Buyouts Fund is designed to help investors gain and maintain a private equity target allocation.

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Investor-Friendly Fund Structure

The Fund provides a limited capacity investment opportunity with an investor-friendly fund structure that allows your clients to invest alongside long-term investors with aligned interests.

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Access to Return Potential of Private Equity

Clients can access the return potential of Private Equity through the secondary market. By allocating to private equity, the aim is to obtain and maintain private equity exposure and turn IRR into ROR - which can help make a significant difference in distributed capital. 

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Access to Private Equity Fund Managers

We partnered with RCP | Advisors, a private equity investment firm with approximately $11.4 billion in committed capitalthat provides access to lower middle market private equity fund managers. 

Fund Documents


Review the latest fund information in the below documents.

Investor Guide

Fund Structure

Fund Terms Lower Middle Market Buyouts Fund
Tax Reporting1 Form 1099-Div
Subscriptions Continuous offering with monthly subscriptions
Investment Reporting Monthly valuations and investment reporting
Minimum Investment $25,000 initial investment; $5,000 subsequent investments
Performance Allocation5 10%
Quarterly Liquidity6,7,8

Quarterly Income Distributions – Investor Choice to Reinvest or Harvest, dividend, capital gains and return of capital

5% Repurchases at NAV

*Source: Preqin - Performance Analyst. Top, Median, and Bottom Quartile North American PE Returns: Funds raised between 1999–2017; Net IRR by strategy – most up-to-date performance as of 12/31/20. Note: All references to fund metrics and performance contained in this Presentation are qualified in their entireties by reference to all of the notes contained in the Appendix. The explanatory notes and methodology contained in those notes should be carefully reviewed in full. Past performance is not necessarily indicative, or a guarantee, of future results. There can be no assurance that a fund will achieve comparable results as any prior investments or prior investment funds of Hatteras. 1.Please consult with your tax advisor for the specifics on your Fund investment tax ramifications. Hatteras does not render tax advise to investors. 2.Registration does not imply that the SEC or any other regulatory authority has approved or disapproved the securities or passed upon the accuracy of the offering materials or the merits of an investment in the securities. However, registered closed-end investment companies such as the Funds are required by SEC rules and regulations to meet certain standards typically not required of non-registered funds. Registration requirements include existence of an independent Board of Directors, and that all holdings be reported to the SEC and made publicly available on a quarterly basis. 3.Prospective investors will be required to certify that they are a “qualified client” as defined by federal securities laws. 4.Investors in the Funds will bear their pro-rata share of the management fee, other expenses as set forth in the prospectus (including insurance costs, trustee fees and the applicable portion of the Funds’ total expenses). Such fees do not include other fees and expenses that may be borne by shareholders, such as placement fees, if applicable, at the Fund level, and indirectly, similar fees, expenses and incentive-based fees/allocations of Fund Investments. Please see the prospectus for a more detailed discussion of the costs and expenses investors will bear, directly or indirectly, by investing in the Fund. 5.The General Partner of the Fund will be allocated a Performance Allocation that is equal to 10% of the excess of the new net profits of shareholder interests in the Fund. 6.Quarterly Income Distributions – Shareholder may elect one of the following options, reinvest dividends, capital gains and all return of capital; reinvest capital gains and return of capital; distribute dividends in cash; reinvest return of capital; distribute capital gains and dividends in cash; distribute dividends, capital gains and all return on capital. 7.A Shareholder may be subject to a repurchase fee equal to 2.00% of the amount requested if such partner has been a Partner for less than 12 months prior to the valuation date. 8.The Fund generally intend to make quarterly offers to repurchase no more than 20% annually of the units of a Fund at the sole discretion of the Board of Directors as described in the Funds’ Prospectus. 9.Please see prospectus for additional information about the details of each Class of Shares.

Why Hatteras?

Hatteras Investment Partners strongly believes that Financial Advisors – an RIA, a family office, or an institutional investment consulting firm – play a critical role in growing and preserving investors’ wealth.

While alternatives like hedge funds, private equity and fund-of-funds were widely available, to mirror the university endowment model, we had to construct an efficient, highly diversified portfolio that included private equity.

Our single mission is to strengthen the relationship between the Advisor and the Investor through performance-focused private investment solutions designed to help build more robust and resilient portfolios.

Bringing this solution to our Advisors and their clients meant simplifying and streamlining the process—removing the barriers to entry and focusing on the solution, not just the product.

Contact Us

Let’s have a conversation about how we can partner together to help your clients achieve their investment goals.

8510 Colonnade Center Drive
Suite 150
Raleigh, NC 27615

P: 919.846.2324
F: 919.846.3433

clientsupport@hatterasip.com