FPG does not receive fees directly from contributors when funds are placed into silent partnerships (tokumei kumiai) for operating leases. Rather, fees, residual value guarantees and costs incurred as other business expenses by arrangers, such as ourselves, who are involved in the structuring of deals, are taken out of contribution amounts. In addition, an amount equivalent to accrued interest for the period between the date that the targeted operation starts up to when contributions are made is taken out of the cost of transferring interest in a silent partnership with such amounts reverting to us since we execute the transfer of investment positions.
Note that we may collect fees directly from contributors to associations (nin’i kumiai), in which members can invest money or contribute in kind and be involved in actual business operations.
Investments in the operating lease business are not investments for which interest or the contributed principal is guaranteed. Therefore, principal may be impaired, losses may exceed the amount put in, or additional contributions may occur subsequent to a loss that exceeds the initial contribution.
Since details regarding fees and risks vary depending on the business into which funds are invested, we recommend that anyone considering an investment read such documents as pre-contract agreements associated with the relevant operation(s) as well as individual prospectuses describing each deal.