About Cherokee Investment Partners LLC
Cherokee Investment Partners LLC operates as a private investment firm. This organization specializes in executive buyouts, acquisitions, recapitalizations, limitations, and a wide range of other business deals.
The firm mainly invested in more than 550 environmentally contaminated, or brownfield, real estate assets across the United States, Canada, and Europe. This organization is the World’s only known ISO 14001 certified private equity manager, with a total of five investment funds since 1996, with aggregate commitments exceeding $2 billion.
What is the role of a financial advisor?
For payment, a financial advisor offers clients financial assistance or recommendations. Financial advisors, often known as advisers, offer a wide range of services, including investment management, tax preparation, and estate planning.
Cherokee Investment Partners LLC primarily invested in about 550 environmentally polluted, or brownfield, real estate holdings located in the United States, Canada, & Europe. This business is the world’s sole ISO 14001 qualified private equity supervisor, having managed five venture capital funds totaling more than $2 billion until 1996.
As a result, Cherokee Investment Partners LLC has been the subject of numerous lawsuits.
We look at 34 different data points when analyzing and rating online money-earning opportunities. Once the research on these data points is submitted, expert contributors reach out to the company’s customers and associates to get more insight into their operation. Finally, all the collected information is presented in the form of this expert review.
All the data is extracted from publicly available information and the sources are given in the transparency section at the bottom of every report.
These reports are made possible by the collective efforts of contributors like you. If you would like to become a contributor then contact us here.
Cherokee Investment Partners LLC: A Case Study
The Securities and Exchange Commission (SEC) believes that it is reasonable that no further actions be launched regarding Cherokee Investment Partners LLC & Cherokee Advisers.
Respondents provided a Notice of Settlement in preparation for the initiation of these proceedings, which the Court of Appeal has decided to accept.
Based on this Order & the Respondents’ Proposal, the Commission concludes
Summary
This action stems from the inappropriate distribution to client assets by two associated private equity fund advisers of certain consulting, legal, & compliance-related expenditures generated as reliant on financial advisers, as well as additional associated violations of compliance.
Cherokee Investment Partners LLC is an equity investment adviser that has managed two private equity real estate money with expenditures in economically polluted assets at all pertinent times: Cherokee Investment Partners II, L.P as well Cherokee Investment Partners III Parallel Fund, L.P.
Cherokee Investment Partners LLC assigned $455,698 of these costs to the funds and required the funds to be reimbursed for them.
While the funds’ limited liability company commitments stated that the funds were going to be imposed for costs incurred in the general partner’s good assessment as a result of the funds’ functioning and tasks, such as legal and contacting fees, the agreements made no mention of the funds being billed for the advisers’ compliance and legal fees.
Cherokee Investment Partners LLC failed to implement documented rules or processes that were adequately intended to avoid Advisers Act breaches caused by the distribution of costs to the funds.
Respondents and Related Entities
CIP is a Delaware limited partnership corporation founded in 1993, with its headquarters in Raleigh, North Carolina. CIP is an independent investment adviser that has been licensed by the Securities and Exchange Commission since March 2012 & has always served as the trustee of Fund II & Fund III.
CA is a Delaware limited liability corporation founded in 2005 with its headquarters in Raleigh, North Carolina. CA is a professional fund adviser who has always served as Fund IV’s administrator.
Fund II is a Delaware limited partnership & private equity fund created in 1998 with roughly $250 million in capital commitments from 21 investors, including large investors, to buy and bring back ecologically polluted property.
Fund III is a Delaware limited partnership & private equity firm founded in 2002 having roughly $620 million in funding among fourteen shareholders, notably large investors, to buy up & restore ecologically polluted property.
Fund IV is a Delaware limited partnership & private equity firm founded in 2005 with roughly $625 million in cash commitments from fifteen shareholders, such as large corporations, to buy and restore ecologically polluted property.
Facts
Cherokee Investment Partners LLC started preparing to register with the Commission as an investment adviser under the Adviser Act in compliance with the Dodd-Frank Act’s then-imminent obligations.
Cherokee Investment Partners LLC’s assigned to the funds and forced the Funds to pay for, $171,232 in compliance-related fees spent in the course of qualifying for registering as a financial adviser according to the Advisers Act or compliance with legal duties deriving from that place registering.
Violation
The Advisers Act forbids financial advisers from carrying out any arrangement, activity, or course of operation that acts as a deception on a current or potential client, either through an intermediary.
Cherokee Investment Partners LLC’s Cooperation and Remedial Efforts
In deciding whether to accept the Cherokee Investment Partners LLC’s Offering, the Federal Trade Commission examined the Respondent’s corrective actions and collaboration with the Commissioner’s personnel.
Cherokee Investment Partners LLC violated the Advisers Act’s reporting requirements, as per the complaint. It primarily requires selected financial advisers to handle a minimum of $150 million of secret firm holdings. Cherokee was the focus of a lawsuit from 2012 to 2016 but didn’t maintain a legal report during that time.
Violation
This firm had been registered with the Securities and Exchange Commission as an investment adviser and handled at least $150 million in funds for its private portfolio at the end of 2012, 2013, 2014, and so on.
Cherokee Investment Partners LLC’s Remedial Efforts
Cherokee Investment Partners LLC shall pay a civil money penalty of $75,000 to the Securities and Exchange Commission (SEC) for deposit to the United States general fund within 10 days of the entry of this Order.
Conclusion
Cherokee Investment Partners LLC is a financial institution that assists in the combination of cash with innovation, knowledge, and determination to provide superior ecological & financial returns.
However, it has multiple cases filed against certain financial advisers with at least $150 million of private fund holdings under administration for breaches of the disclosure obligations.
