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Unlocking Additional Yield for Investor Portfolios

What is the fund?

We're transforming investor portfolios with an innovative financing model that uses portfolios as collateral for strategic land acquisition and quarry development. By addressing timing challenges and conducting thorough property diligence, we target high-potential sites to unlock capital for land acquisitions. Through the Gratiam tm equity fund, investors can expect strong returns of 10% - 15% on top of their portfolio within 24 months. This streamlined process provides investors with yield on their invested capital and boosts advisor's assets under management

Company Objectives

  •  To acquire and develop up to 25 high-quality, high-output aggregate materials assets, including quarry sites and strategic logistical assets.

  • To generate a positive, above market return for investors during the life of the fund, including an upfront tax advantage.

  • To position the Company for acquisition by a larger competitor in 5-7 years.

  • To run the Company in an efficient and profitable manner, with the highest standards and transparency.

Notes:

This is not an offer to sell securities. An offer to sell the limited liability company units (“Units”) of Gratiam Quarry Fund, LLC (the “Company”) may be made only pursuant to the Confidential Private Placement Memorandum, as may be amended or supplemented (the “Memorandum”). The information contained herein is qualified in its entirety by the Memorandum. The offering of Units is being made by means of the Memorandum only to accredited investors who meet minimum accreditation requirements, as well as suitability standards as determined by a qualified broker-dealer or investment advisor. All prospective investors must read the Memorandum, including the “Risk Factors,” prior to investing.
 

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Aggregates Industry Notes:

  • Aggregates industry steady and expected to continue growing at CAGR of 8.36%.**

  • Prominent, publicly held companies in the sector seek expansion through acquisition of established quarry assets rather than development of new “greenfield” assets.
  • Greenfield development requires patient capital, as returns on investment are typically not seen for 2-3 years.
  • For public companies accountable to shareholders with the next quarterly report ever-looming, greenfield development is a drag on profitability.

     

Opportunity

  • The reluctance of major aggregates companies to develop new greenfield quarries presents an opportunity to fill the need for new quarry development and profit from selling the established assets.

Development Plan

  • Gratiam Quarry Fund, LLC (the “Company”) will develop assets it purchases from our Quarry Asset Acquisition Capital Fund (“QAAC Fund”)**.

  • QAAC Fund is identifying, conducting extensive diligence, and purchasing properties that fit the criteria for quality quarry assets utilizing a line of credit provided by First National Bank.

  • The Company will raise equity to purchase these assets from QAAC Fund and begin the development process by securing the required entitlements to allow for the development of a rock quarry on each of the properties.

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Target Area: Southeast US

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Value Proposition

  • Unique structure combining immediate tax benefits with cash flow and future growth overcomes the “patient capital” challenge.

  • The majority of the investors’ capital is returned in as few as 3 months through tax benefits.

  • Investors retain their equity in the Company and benefit from cash distributions and participation in the planned sale of the Company in 5-7 years.

  • With the swift recovery of the initial investment, the investor is effectively using “house money” to maintain most of
    his/her ownership in the Company and accumulate wealth.

Value Add Illustration

Example Investor Benefit Projection

  • The reluctance of major aggregates companies to develop new greenfield quarries presents an opportunity to fill the need for new quarry development and profit from selling the established assets.

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** These are forward looking statements and may not reflect the returns ultimately achieved by the investor.

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GQ Fund Organization Chart

  • All profits, losses, credits, and deductions will flow up from each of the quarry projects to Gratiam Materials Co., 99.9% of which will flow to Gratiam Quarry Fund.

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Risk Factors to Consider

  • An investment in the Units is speculative, illiquid and involves a high degree of risk, including the loss of investment. 

  • There will be no public market for the Units. 

  • There is no guarantee that investors will receive any return. 

  • The projects will be subject to the risk generally associated with the acquisition, ownership and operation of real estate including, without limitation, environmental concerns, competition, easements and restrictions and other real estate related risk. 

  • The Company intends to use leverage to acquire the projects. 

  • The Company is a newly formed entity with no history of operations, no experience managing or operating funds, and has limited capital. 

  • The manager, the Company and their affiliates will be subject to certain conflicts of interest. An investment in the Units involves certain tax risk.

  • The Company will invest in a limited number of mining properties and private credit transactions and thus, will have limited asset class diversification and be subject to the same property-related and industry-related risk. 

  • There is no assurance that the development of the projects will result in projected aggregate sales volume and rates or an increase in the fair market value of the projects. 

  • The projects will be subject to various development risk, including weather conditions, delays in development 

  • schedules, cost overruns, work stoppages, and the availability of materials and labor.

  • Inflation may have adverse consequences on the Company’s operations.   There may be reliance on an affiliate of the manager or third parties to develop, operate and sell the projects.

** Please see PPM for complete list of risk factors

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Gratiam Quarry Fund

  • Offering Size: $100,000,000        

  • Minimum Investment: $100,000     

  • Anticipated Hold Time: 5-7 years

  • Suitability: Accredited investors only (506(c))

  • Preferred Return: 6% until investors hit Hurdle Return

  • Hurdle Return: 120% on invested capital

  • Investor Distributions: 80% until Hurdle, 50% thereafter

  • Management Fees: 1% plus carried interest

** The preferred return is a senior preference in Company distributions. Any distributions will be paid in accordance with the operating agreement of the Company. There can be no assurance that investors will receive a distribution.

** The investors’ capital investment is backed by tangible real property with valuable mineral assets.

Learn more from Gratiam 

 Discover how Investing in Gratiam can help optimize your tax strategy meet our expert team a

Contact a specialist 

©2024 Gratiam Materials LLC. All rights reserved

2179 County Road 321

Poplar bluff MO 63901

P. 404.720.1944

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