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Woodfine Corporate

The corporate record for Woodfine Capital Projects Inc., developer and promoter of direct-hold commercial real estate. Articles explain the company, its investment vehicles, the financial model, governance, and risk, in plain language. Forward-looking statements carry planned, intended, or target language throughout.

Woodfine Capital Projects

Principal alignment and fee preservation

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5bb6f8f3 · Woodfine Capital Projects Inc. ·

style(corporate): split 5 more over-length sentences (62-69 words) — ifrs-forecast FOFI passage, limited-partnership agreement scope, holding-company earnings-yield cross-check, asset-vehicle legal-personhood, principal-alignment 2/20 restructure (EN+ES; no factual changes)

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The **Principal Alignment and Fee Preservation** model describes how compensation in the [[direct-hold-solutions-structural-comparison|Direct-Hold Solutions]] is structured to enforce a direct alignment between the developer's economic interest and the investment returns of the investors it serves. The conventional alternative investment fee model — the 2/20 structure of a 2% annual management fee and 20% carried interest — is restructured in two ways: developer profit is taken as equity rather than cash, and the variable management fee is replaced by a fixed annual overhead contribution that does not grow with the passage of time or the execution of transactions.
The **Principal Alignment and Fee Preservation** model describes how compensation in the [[direct-hold-solutions-structural-comparison|Direct-Hold Solutions]] is structured to enforce a direct alignment between the developer's economic interest and the investment returns of the investors it serves. The conventional alternative investment fee model — the 2/20 structure of a 2% annual management fee and 20% carried interest — is restructured in two ways. Developer profit is taken as equity rather than cash, and the variable management fee is replaced by a fixed annual overhead contribution that does not grow with the passage of time or the execution of transactions.

## The problem with the conventional 2/20 model
Important Information

Important Information

Securities offering. Woodfine Capital Projects Inc. ("Woodfine") sponsors real-property direct-hold solutions. Interests in those solutions are offered only to investors who qualify under an applicable prospectus exemption — including the accredited-investor exemption under National Instrument 45-106 — Prospectus Exemptions, and equivalent exemptions in other applicable jurisdictions. Content on this wiki is provided for general informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any offering is made exclusively by means of the applicable Private Placement Memorandum, which prospective investors should review, together with their own professional advisors, before investing.

Scope. This wiki describes Woodfine's research methodology, geographic data platform, and related activities at a high level and is qualified in its entirety by the applicable Private Placement Memorandum and the governing documents of the relevant issuer.

Risk. Investment in real-property direct-hold solutions involves significant risk, including possible loss of capital. Past performance is not indicative of future results. References to structural features such as advisory fees, transferability, and net asset value methodology describe the contractual terms of the direct-hold solutions and are not representations as to investment outcomes or returns.

Forward-looking statements. Statements that are not historical facts may constitute forward-looking information within the meaning of applicable Canadian securities laws. Such statements are subject to known and unknown risks, uncertainties and assumptions, and actual results may differ materially. Woodfine undertakes no obligation to update such statements except as required by law.

Registration. Registrable activities of Woodfine and its affiliates are conducted, where required, under the applicable registration categories prescribed by the British Columbia Securities Commission and other Canadian securities regulators. Specific registration details are available on request.

Jurisdiction. Woodfine Capital Projects Inc. is organized in British Columbia, Canada. References to the Sovereign Data Foundation on this wiki describe a planned or intended initiative only, not a current equity holder or active governance body.

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