Risk Information
Last updated: 2 October 2026
Important Investment Notice
Capital is at risk. Investors may lose some or all of their investment. Target returns and distributions are not guaranteed. An investment in the Fund is illiquid, and investors should be prepared to hold their interests for the full Fund term, including any permitted extensions.
This page summarises important risks associated with the investment approach described on the Rise Capital website, including Rise Capital AM Hybrid Fund SCSp (“Fund”).
It is not an exhaustive statement of risks and does not replace the Fund’s offering, constitutional, subscription or other investment documents. Prospective investors should read those documents and obtain independent professional advice before making an investment decision.
1. Risk of Capital Loss
The Fund’s strategy involves exposure to UK residential development through secured development debt and selective project-level equity participation.
The value of investments and the income they generate may fall. Neither the return of invested capital nor any particular investment outcome is guaranteed.
Underwriting, security arrangements, governance and monitoring are intended to manage risk. They cannot eliminate it.
2. Development and Construction Risk
Residential development involves uncertainties that may affect project costs, completion dates and profitability.
These include planning delays or refusals, changes to planning conditions, construction cost increases, contractor failure, labour or material shortages, defects, infrastructure requirements and unforeseen site conditions.
A development may require additional funding, take longer than expected or fail to achieve its intended outcome.
3. Property Market and Sales Risk
Project performance depends partly on conditions in the UK residential property market.
Interest rates, mortgage availability, purchaser demand, affordability, economic conditions and local supply may affect achievable selling prices and the speed of sales.
Properties may sell later or for less than anticipated, reducing project proceeds and delaying repayments or distributions.
4. Development Debt and Borrower Risk
Contractual interest and repayment obligations depend on the borrower’s ability to meet them.
Borrowers may default, become insolvent or require restructuring. Interest may be delayed or unpaid, and the Fund may recover less than the amount lent.
A contractual interest rate describes a borrower’s payment obligation. It does not guarantee that the Fund will receive that interest or that investors will earn an equivalent return.
5. Security and Enforcement Risk
Where a debt investment benefits from project-level security, that security does not guarantee full recovery.
Recoveries depend on matters including the validity, priority and enforceability of the security, the value and condition of the assets, competing claims and enforcement costs.
Enforcement may involve delays, litigation, insolvency proceedings or additional expenditure. A first-charge position, where applicable, does not remove the risk of loss.
Loan-to-cost and loan-to-gross-development-value ratios depend on underlying estimates. Actual costs and realised values may differ materially.
6. Project-Level Equity Risk
Equity participation is exposed to project performance and generally ranks behind debt and other liabilities.
Development profits may be lower than forecast or may not arise. The Fund may lose all of an equity investment.
Any illustrative profit-sharing percentage depends on the terms and economics of the individual project. It should not be assumed to apply to every investment.
7. Hybrid Strategy and Concentration Risk
Combining debt and equity creates different sources of potential return, but does not ensure diversification or reduce every risk.
Debt and equity exposures may depend on the same development, sponsor, property market or economic conditions. A single adverse event may therefore affect both.
The Fund may have concentrated exposure to a limited number of projects, counterparties or locations, particularly during its initial deployment period.
8. Financing and Leverage Risk
Projects may use borrowing, and any borrowing at Fund level will be governed by the Fund documents.
Leverage can increase losses as well as potential returns. Higher financing costs, covenant breaches, refinancing difficulties or withdrawal of funding may adversely affect a project or the Fund.
Debt obligations may require payment before proceeds are available for equity investors.
9. Liquidity and Fund Term
The Fund is described as closed-ended. Investors should not assume that they can withdraw capital or redeem their interests on demand.
Underlying development investments may be difficult to sell or realise promptly. Project delays may extend the time required to return capital.
Any Fund extensions, early termination arrangements or transfer rights will be governed by the Fund documents.
Investors should consider whether they can accommodate an extended period without access to their invested capital.
10. Tokenisation and Secondary Transfers
Rise intends to use Tokeny’s digital infrastructure to support tokenised LP interests.
Tokenisation does not change the underlying investment risks, create a redemption right or guarantee a secondary market.
A permitted transfer may require an eligible counterparty, compliance with the Fund’s transfer provisions, investor eligibility checks, KYC/AML procedures and any required approvals.
There is no guarantee of a buyer, a particular sale price or an active trading venue. An investor seeking an early transfer may be unable to sell or may have to accept a substantial discount.
Digital infrastructure also introduces technology, cybersecurity, access-management and operational risks. System failures or security incidents may disrupt administration or transfers.
11. Target Returns, Forecasts and Illustrations
Target returns, distribution objectives, forecasts and case studies are based on assumptions and are not promises of performance.
Actual outcomes may differ because of changes in costs, timing, funding, market conditions or other factors.
Illustrative project returns do not necessarily represent the return achievable by the Fund or an individual investor.
Fund expenses, fees, carried interest and the timing of cash flows may reduce investor returns. Figures should be read with their stated assumptions and any explanation of whether they are gross or net.
Past performance, where presented, is not a reliable indicator of future results.
12. Distribution Risk
Target annual distributions are an objective, not a guaranteed payment schedule.
Distributions depend on available distributable proceeds, cash requirements, liabilities, reserves and the Fund’s distribution provisions.
Interest receipts, project sales and realisations may be delayed. A distribution may be lower than expected, postponed or not made.
Investors should not assume that every distribution represents investment profit; its treatment will depend on the Fund documents and applicable accounting and tax rules.
13. Valuation Risk
Development assets and private investments may not have readily observable market prices.
Valuations may rely on professional judgement and assumptions about future sales, costs, completion dates and market conditions.
Reported valuations may differ from the proceeds ultimately achieved on sale, repayment or enforcement. A valuation is not a guarantee of an achievable transaction price.
14. Management, Operational and Counterparty Risk
Fund performance depends on the people, organisations and systems involved in origination, investment management, administration and project delivery.
Key-person departures, service-provider failures, reporting errors, fraud, cybersecurity incidents or inadequate project execution may adversely affect the Fund.
The involvement of institutional providers, independent advisers or an auditor does not guarantee investment performance or prevent all operational failures.
15. Conflicts of Interest
Conflicts may arise where managers, sponsors, developers or associated parties have multiple roles, investments or commercial relationships.
Potential conflicts may concern project selection, allocation of opportunities, fees, related-party transactions or the timing of exits.
Prospective investors should review the Fund documents for disclosures about these relationships and the procedures for managing conflicts.
16. Fundraising and Deployment Risk
Target commitments, closing dates and deployment plans may not be achieved.
A smaller capital base, slower fundraising or a shortage of suitable investments may affect diversification, cost efficiency and the pace of deployment.
Capital awaiting investment may generate lower returns than anticipated. Identified pipeline opportunities may change or may not proceed.
17. Legal, Regulatory, Tax and Currency Risk
Changes to law, regulation, planning policy or taxation may affect the Fund, its projects or investors.
Tax outcomes depend on individual circumstances and may change. Prospective investors should obtain their own tax advice.
Where an investor’s reference currency differs from the currency of commitments, valuations or distributions, exchange-rate movements may affect the value of their investment.
18. Investor Eligibility and Regulatory Protection
The Fund is intended for investors who satisfy the applicable eligibility requirements. Access to investment documentation and participation remain subject to the Fund documents, distribution restrictions and onboarding procedures.
A Luxembourg structure or the involvement of a regulated service provider should not be interpreted as regulatory endorsement or a guarantee of capital or returns.
Investors should not assume that UK Financial Services Compensation Scheme protection, Financial Ombudsman Service access or another compensation arrangement applies. Any relevant protections should be confirmed for the particular investment and service involved.
19. Independent Advice and Investment Documents
Website information is general and does not assess whether an investment is suitable for your circumstances.
Before investing, consider your financial position, ability to bear losses, liquidity needs and investment objectives with appropriately qualified advisers.
The Fund’s formal documents will describe the applicable investment terms, risks, fees, governance arrangements and investor rights. This page is a summary and should be read alongside those documents.
Further Information
Prospective investors may request further information through the Investor Enquiries page.
Submitting an enquiry does not constitute an application or commitment to invest, confirm investor eligibility or reserve an allocation.