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Apex Equity Fund, the ("Fund") takes in investment capital by issuing Notes to Investors.  The Fund will issue 3 year Notes having an interest rate of 8.0%, and 5 year Notes having an interest rate of 8.5%. The Notes offered rate may change at any time and without prior notice. Interest is paid quarterly via ACH (direct deposit) to the investor account. Principal is paid at maturity.

Capital is used primarily to acquire Water Company Refund Contracts priced to yield a minimum of 9.0%.  The prices of Refund Contract examples shown on the Apex Income Fund website is for Direct Purchase by investors.  If the Fund purchases one or more of these Refund Contracts, or others not shown on this list, the price would be further discounted to achieve a 9.0% net yield to maturity at acquisition.

Refund Contracts paying a 9.0% return exceed the interest expense paid to investor Notes (8.0% for 3 year Notes and 8.5% for 5 year Notes). The excess earnings will offset minimal expenses such as fees for a custodial trust account, investor distributions, accounting, tax reporting  legal and similar expenses.

There are no administrative fees associated with this Fund.

Apex Investment Management, LLC is the Fund Manager. 

The Manager will be responsible all investment decisions, collection and servicing functions, investor reporting, and distributions with respect to investor Notes.

The Manager will not charge a management fee. 

The Fund's  sole Member, Apex Equity Holdings, LLC will be entitled to any retained earnings resulting from the net yield spread i.e. the difference between the income earned from investment assets less the interest expense paid on investor Notes, and operating expenses of the Fund.

Affiliates of the Fund and its Manager, Neptune Investment Company and related entities ("Neptune"), have been in continuous business since 1974. Neptune purchases from real estate developers their Water Company Refund Contracts for the installation of water infrastructure.   Neptune either sells the Refund Contracts to investors as a form of long term, higher yield annuity, or places the Refund Contracts into the Fund where investors may purchase Notes that are backed by the Refund Contracts held in the Fund.

Neptune maintains relationships with many real estate developers in California. Neptune tracks their projects and the status of their water main Refund Contracts. At a point when the Refund Contracts are eligible to be transferred from the real estate developer,  Neptune offers to buy the Refund Contracts which are sold to individual investors or placed into the Fund.  

Apex Income Fund will acquire Refund Contracts from Neptune at a price based upon a minimum yield to maturity of 9.0%.  Neptune will earn a brokerage fee for providing the Fund with Refund Contracts.

The Fund will raise capital by issuing Investor Notes to  accredited investors:

• 3 year Notes having an interest rate of 8.0%, and 
• 5 year Notes having an interest rate of 8.5%.

Interest will be paid quarterly via Automatic Clearinghouse ("ACH"), which is another term for direct deposit to the investor designated account to receive Note payments.

Ranking. All Notes are Senior Notes. All Notes have a similar priority claim to the Fund assets. 

Reinvestment. Investors may elect to have interest payments accrue. If accrual of interest is chosen, then the interest will compound annually, and principal  and accrued interest will be due at maturity.

Example:  Note Principal  $100,000 , Term  3 Years,  Interest  8.00% :       

Balance End Of 1st Year  $108,000    

Balance End   Of 2nd Year $116,640    

Balance At Maturity  $125,971     

In advance of  Note maturity, the Fund will determine whether the Note Holder wishes to be paid in full , extend the maturity, or may elect a "payment in kind" .

If a Payment In Kind is considered  by the Note Holder, the Note Holder may be given the option to receive one or more Refund Contracts as a form of payment of their Note. The difference between the Note payoff amount and the value of Refund Contracts received will be adjusted in cash.  This election is at the discretion of the Note Holder and subject to consent by the Fund.

Refund Contracts have longer term maturities than the Notes issued  by the Fund. To  meet maturing Note obligations, the Fund will will pay off the maturing Note from excess cash receipts, accept new  investors, or sell Refund Contracts.  Generally, the Fund will be in a growth status taking in new capital by issuing Notes, and acquiring new Refund Contracts.

Notes may be prepaid by the Fund without penalty.

Notes contain restrictions on transfer, and investors should plan to hold their Notes to maturity. Any requests for early liquidation of a Note will be treated on a first requested basis and subject to management approval.

Fund assets are limited to Refund Contracts contracts from the largest Water Companies operating in the state of California, and to a lesser extent the Fund may purchase Refund Contracts from Water Companies operating in Arizona.  Other assets are cash on hand and accounts receivables if any.

California based Water Company Refund Contracts at their origination have 40 year repayment terms. The Refund Contract original balance is paid over 40 years in equal annual installments until the un-refunded balance is paid in full.  All Refund Contracts are originally between real estate developers and the Water Company.  When Refund Contracts are purchased by the Fund from real estate developers, the remaining term if usually less than 40 years depending on the number of years since the Refund Contract was originated.

Arizona based Water Company Refund Contracts have  original terms of 10 - 22 years depending on the Water Company. Arizona Refund Contract annual payments are based upon a percentage of revenue  the water company receives from the water mains related to the refund contract. The Fund has no immediate plans to purchase Arizona Water Company Refund Contracts, but it is mentioned because they are desirable from an investment standpoint because the annual payments strongly tend to increase over time, and provide higher lifetime returns. The reason their acquisition is not planned at this time is because their acquisition prices tend to be very small by comparison to California Refund Contracts. Most Arizona based Water Companies are subsidiaries of parent Water Companies operating in many states, including California.  

See Executive Overview tab For Additional Information including specific Water Companies and their financial summaries.  Water Company financial information available by request.

Assets are held in an institutional Custody Account with Equity Trust Company. Refund Contract payments are received by Equity Trust Company FBO Apex Income Fund,

Our affiliate Neptune Investment Company has continuously operated since 1974 as a offeror of direct investment in Refund Contracts, and operated a number of pooled  investment funds holding Refund Contracts that issue asset backed Notes to investors. 

Since inception, we have transacted more than 5,000 Refund Contracts.

The foregoing information contained and linked to this website is for information purposes only. No securities are offered herein. Any securities offered can only be accomplished by way of a Subscription to a Private Placement Memorandum provided to accredited investors only.