Support | Cadre

General

Account Services

• How can I contact the Cadre team if I have questions?
  You can contact the Cadre team in one of three ways -

  • By emailing us at support@willowwealth.com

• How do I create an account?
  At this time, we are no longer creating new accounts. Cadre has joined with Willow Wealth to be your partner in enhancing your portfolio with the most extensive array of private market alternatives. If you would like to explore alternative investments, please setup an account at Willow Wealth.
  If you are existing Cadre user, you may log into your Cadre account to view your portfolio.

506(c) Accreditation Verification

• Who can invest in the Cadre Direct Access Fund?
  In order to invest in the Cadre Direct Access Fund, investors must meet the criteria of being an accredited investor.

• What is an accredited investor?
  “Accredited investor” has been defined by the Securities and Exchange Commission (SEC) as a test to determine who is eligible to participate in certain private capital market offerings. Generally an individual person is an accredited investor if they:
  (1) had an income of $200,000 over the last two years (or $300,000 jointly with a spouse or spousal equivalent) and reasonably expect to satisfy the same criteria in the current year,
  (2) have a net worth of over $1,000,000, either alone or together with a spouse or spousal equivalent (excluding the person’s primary residence) or
  (3) hold a Series 7, Series 82, or Series 65 financial services license and is in good standing.
  An individual must be an accredited investor to invest with Cadre.

• Can international investors participate?
  Generally, as a non-US investor you must be a qualified purchaser to invest with Cadre. Generally, an investor is a qualified purchaser if the investor (1) holds investments greater than $5M or (2) is acting on behalf of other qualified purchasers who, in aggregate, own and invest greater than $25M in investments.
  (Our website and offerings are directed solely to persons located within the United States. If you live outside the United States, it is your responsibility to fully observe the laws of any relevant territory or jurisdiction outside the United States in connection with any purchase of membership interests, including obtaining required governmental or other consents or observing any other required legal or other formalities. Unless otherwise explicitly indicated by us, we have not registered or qualified the offering of shares in any jurisdiction outside the United States).

• I am investing through a business entity (i.e. a trust, LLC, partnership or corporation). How does an entity qualify as an "accredited investor"?
  Generally, an entity will satisfy the SEC’s definitions if it either (1) has total assets in excess of $5,000,000 and has not been formed for the purpose of participating in a specific investment or (2) is wholly owned by accredited investors.

• Why do I have to prove I am accredited for this investment?
  The Cadre Direct Access Fund is offered pursuant to an SEC rule referred to as 506(c). The rule requires that Cadre verify the accreditation status of each investor. For this reason, investors in the Cadre Direct Access Fund are asked to provide documents that attest to their accreditation to satisfy the rule.

• What documents can I provide to verify I am accredited?
  The following documents can be provided to verify your status as an Accredited Investor:
  (1) W-2s;
  (2) tax form 1040;
  (3) a letter from a broker-dealer, SEC-registered investment adviser, licensed attorney or CPA stating that you are an accredited investor (“a verification letter”);
  (4) Individual BrokerCheck Reports (as applicable).

• What is a verification letter? How can I use a third party to verify I am accredited?
  An Accredited Investor Verification Letter can be provided by a qualified broker-dealer, investment advisers, lawyers or accountant with knowledge of your finances who can certify as to your accreditation. The best way to get a third party verification is to use our easy to follow template verification letter and then submit it once finalized. The verification letter is only valid for three months from when the third party completes it, so please send us the completed letter soon after it is available.

• I file my tax returns jointly with a spouse or spousal equivalent. What documents should I provide?
  If you are relying solely on your income to satisfy the “accredited investor” requirement ($200,000 of annual income) and your tax returns include income from another person, please provide your W2s or other individual tax documents for the last 2 years.
  If your returns show that you can satisfy the joint income test ($300,000 of annual income) you can provide 1040s for the last two years. Alternatively, you can submit a verification letter that confirms your status as an accredited investor (see “What is a verification letter?” above, which explains what a verification letter is).

• What if I don’t want to provide the requested documents?
  Verifying your accreditation status through an approved method is required to invest in the Cadre Direct Access Fund. Accredited investors who do not want to provide these documents can still invest in most of our deal-by-deal offerings.

• I would like to provide a letter from a broker-dealer, SEC-registered investment adviser, attorney or CPA to attest to my net worth. What must the letter state?
  Cadre has created a template verification letter that can be shared with an appropriate verifier for completion. As noted in “What is a verification letter?” above, the verification letter can be completed by a broker-dealer, SEC-registered investment adviser, licensed attorney or CPA. Please download our template verification letter and submit once finalized.

• Part of my compensation at my employer is options in the company's stock. Can stock options count towards the $200,000 income requirement for accredited investor status?
  Generally no. Typically only realized income (like what appears in your tax returns or is specifically exempt from tax) will be recognized as income for purposes of the accredited investor definition.

• Part of my compensation at my employer is restricted stock units (RSUs). Can RSUs count towards the $200,000 income requirement for accredited investor status?
  Yes, RSU dividends reported on your W-2 will count as income for purposes of satisfying the accredited investor definition.

• I hold the Series 79 and would like to invest with Cadre. Am I an accredited investor?
  No. Currently the SEC has only approved the Series 7, Series 82, and Series 65 licenses for accredited investor status. If the SEC expands the approved licenses to include the Series 79 in the future, then holders of the licenses in good standing could qualify as an accredited investor at that time.

• I held the Series 7 FINRA license in my last position but am no longer associated with a broker-dealer and my license is inactive. Am I an accredited investor?
  No. The SEC requires that an individual hold the Series 7, 82, or 65 and be in good standing. If you no longer hold the license, you are not an accredited investor under this prong of the definition. However, if your income for the last two years was above $200,000 as an individual (or $300,000 jointly with a spouse or spousal equivalent), you may qualify as an accredited investor under the income prong of the definition.

• How do you protect the information and documents that I provide? (i.e. site security)?
  Maintaining the integrity and security of our investors’ data is a priority for Cadre. We follow industry standards and address security in three major components: physical security, corporate IT security, and production security. Learn more by reviewing our Privacy Policy, which is available here.

• I have verified my accreditation. Will I have to provide updated documents in the future?
  Verified investors should not need to re-submit verification documents for future investments in the Cadre Direct Access Fund. We may need to have you certify that you continue to be an accredited investor.

• How long should I expect the verification process to be after I submit the requested documents?
  Review of your accreditation documents can take up to 3 business days. If we require any further information or documentation beyond what you have provided our team will contact you. Please note, follow up requests could cause the verification of your accredited status to take longer than 3 business days.

• What happens if the documents I provide are not sufficient?
  If the materials you upload are not sufficient, we will contact you to discuss whether additional documents may be provided to establish your status as an accredited investor.

Investment Process

• When can I expect to receive a distribution?
  Initial distributions typically occur 3 to 5 months after initial close. Quarterly distributions typically occur within six weeks after the end of each quarter. While we work to distribute as efficiently as possible, timing can vary given the involvement of multiple parties.

• What is the minimum investment?
  The minimum investment amount is $25,000 for the Cadre Direct Access Fund and $50,000 for deal-by-deal investing. Our investors range from qualified individuals through larger groups and institutions committing more sizeable amounts.

• How does the allocation & commitment process work?
  Investors can submit non-binding allocation requests via the platform. Cadre then grants allocations taking into account timing, interest level, and overall opportunity size. Once an allocation is accepted, investors receive an online subscription agreement for completion prior to funding.

• What is the process after I submit an allocation request?
  You will receive an email to complete your investment documents. You have 24 hours to complete those documents before your allocation request is canceled. If you need additional time to review your documents, please reach out to investments@cadre.com and we will do our best to accommodate investor needs.

• When and how will I receive distributions?
  Distributions are typically made quarterly from available operating cash flow and are automatically deposited into investors’ bank accounts. Size and timing of distributions depend on the business plan and performance of each investment. Investors are notified of upcoming distributions and are able to track their distribution history through our online platform.

• What is Cadre's investment strategy?
  We take a fundamental, value-driven approach to investing. We seek to identify commercial real estate opportunities that offer attractive risk-adjusted value relative to replacement cost, stabilized cash flow, and comparable sales. We target income-producing properties in major U.S. markets with compelling fundamentals. Our focus is primarily on office, multifamily, and retail assets, though we broadly seek opportunities with the potential for value-add through capital improvements, proactive lease management, and market positioning.

• What happens to my investment if Cadre no longer exists?
  Each Cadre investment partnership is incorporated under Delaware law. In the event the General Partner (Cadre) files for bankruptcy or is declared insolvent, the General Partner would be deemed to have withdrawn from the Partnership. Pursuant to the agreements governing each partnership, investors would then decide how to replace the General Partner and continue or dissolve the fund.

• Does Cadre support 1031 exchanges?
  No, the commercial real estate opportunities available on our platform are not meant to be used in 1031 exchange transactions.

Opportunity Zones

• Cadre has indicated that it intends its Opportunity Zone program to hold deals for at least 10 years to take maximum advantage of the potential tax savings. Will I be able to dispose of my interest in the QOF prior to the 10 year hold period?
  Achieving liquidity prior to the full hold period will not necessarily negate the tax benefits to you: the rules permit further rollover of gains realized upon a sale of your interest in the QOF (it’s important to note that the purchaser of your interest may not be able to receive any of the O-Zone tax benefits).

• How can I participate in the Cadre program?
  Investors can participate in the Opportunity Zone program in the same way they participate in non OZ deals. Once a transaction is available for subscription, we will open that deal for allocation requests on the Cadre platform. Investors can then select investments they want to invest in. Subject to set asides for managed accounts or institutional commitments, allocation requests are accepted on a first-come, first-serve basis with an investment minimum of $50k.

• Do I still have to pay state tax?
  One practitioner has stated that “Investors in states that do conform with the federal Opportunity Zones provisions may receive state tax incentives similar to those available at the federal level. Conversely, investors residing in nonconforming states may be unable to defer and reduce state taxation on the initial gains invested in opportunity zones. Investors in these non-conforming states may also be required to recognize gain for state tax purposes on their eventual sale of the opportunity fund investment.” All investors should consult their tax advisors to confirm their local requirements.

• I am sitting on substantial capital gains and my 180 day clock expires soon. Can I place this gain in a QOF even if the QOF is not ready to invest all the gains immediately? If I invested all my gain with Cadre today, how long would Cadre have to invest?
  The Opportunity Zone Regulations allow you to invest in a QOF immediately. For that QOF to qualify prior to actually undertaking a development/investment, the manager must produce a written schedule that describes the planned expenditure of the cash (and other working capital). This schedule must be produced prior to the end of the first 6 month period of the QOF (and in all events by December 31 of the O-Fund’s first year) and must generally contemplate the expenditure of the QOF assets within a 31-month period, thereby providing the flexibility to extend the window between gain recognition and capital deployment to as much as three years. Please reach out to us to discuss specifics related to your situation in order to arrive at an optimal funding strategy.

• How is this reinvestment different from a 1031 exchange?
  Unlike a 1031, the Opportunity Zone rules allow you to reinvest any gain, not just gain from the sale of “like-kind” real estate assets. Moreover, Opportunity Zone investment requires no intermediaries. You can hold your gain on your own and still benefit on any part of it you invest in an Opportunity Zone within 180 days. Please reach out to us for a more comprehensive side-by-side between 1031s and Opportunity Zones.

• How do I get my investment certified by the IRS?
  QOFs will self-certify using Form 8996 as a part of their tax return. Given the self-certification, there is no initial approval process by the IRS. Cadre as the manager of the QOF will need to file IRS Form 8996 every year to report compliance with the 90% asset test and other matters required by the IRS. When filing tax returns, investors will elect a deferral using Form 8949 and Form 8897. All investors should consult their tax advisors regarding their individual reporting requirements.

Tax Process & Documents

• When can I expect to receive a K1?
  K-1 tax forms are distributed to investors in the weeks leading up to April 15th.

• What kind of tax documents will I receive for my real estate investments?
  You will receive an aggregated tax reporting package with K-1s at the end of each year. Throughout the life of each investment, you will also receive detailed asset-level information including investment memorandum, due diligence summaries, and ongoing quarterly reporting.

Cadre Portfolio

Cadre Portfolio

• How are my investments in a Cadre Portfolio structured?
  Each investment is a direct ownership interest in a limited partnership or other entity managed by Cadre, which is governed by the organizational and subscription documents applicable to that specific transaction.

• What reports will I receive?
  You will receive an aggregated tax reporting package with K-1s at the end of each year. Throughout the life of each investment, you will also receive detailed asset-level information including investment memorandum, due diligence summaries, and ongoing quarterly reporting.

• When and how will I receive distributions?
  Distributions are typically made quarterly from available operating cash flow and are automatically deposited into your bank account. Size and timing of distributions depend on the business plan and performance of each transaction. You will be notified of upcoming distributions and are able to track your distribution history through your Cadre login.

• What is the length of my commitment?
  The initial funding period for your commitment is up to 2 years. For each investment, we typically target 3-8 year hold periods. Please review the Investment Advisory Agreement for a complete description of the commitment term and investment guidelines.

• What fees will I be paying to Cadre?
  There are no additional fees associated with a Cadre Portfolio commitment. Clients are subject to the same fees as deal-by-deal investors, including:

1. a transaction fee (usually 1.0% of the investor’s pro rata share of deal capitalization); this is included in the investor’s funding amount for each transaction
2. an annual asset management fee (usually 1.5% on investor equity value once an investment is funded); this is deducted from distributable cash flow. Please review the Investment Advisory Agreement for a complete description of fees that may be charged by Cadre to each transaction.

Important Disclosures
Performance Not Guaranteed: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance.
Risk of Loss: All securities involve a high degree of risk and may result in partial or total loss of your investment.