PIC Fund I, LLC

I've invested in the PIC Car Wash 5, PIC Car Wash 6, and PIC Alliance Fund. None of them have gone to plan, or anywhere close to it. The car wash investments have been particularly egregious. The forecasts have never been in-reach. The strategy of selling memberships fell flat. And floating rate debt has eaten away at any cash flow margin we could have hoped for (the PPM I signed said debt would be ~7% fixed for 5 years by the way!) The PIC Alliance Fund has been used to provide capital to struggling assets - all of which have been PIC's other investments. I hold out hope it will at least provide the preferred return given its position in the capital stack, but even with that, I don't sleep easy given the reports of 100% losses on several of PIC's MF assets. Expected capital return on the Alliance Fund has been pushed back at least a year from the 3 year underwritten term. Generally, investor communication has been subpar and rosy. The car wash state of the union was especially confusing as it was almost entirely positive, brushing the real problems under the rug, while investors had and continue to receive quarterly financials update that indicate underperformance. I would steer clear.

Getting involved with this group has been, by far, the worst experience in my 30 years of investing. Have invested in four syndicated deals with this group and nextlevelincome.com. Managers are Brandon Abbott, Danny Randazzo, and Dan Handford. Cameron Broom is involved in the Car Washes. Chris Larsen is the contact through nextlevelincome.com and Chris still portrays himself as an passive investment guru with this horrendous track record. One has gone to zero, the other three have paid less than 1% ConC over 5 years, and I'm concerned more of the three will go to zero. By far the worst "investments" I've been involved with in my life. Poor management, over leveraged, be wary.

In my opinion, their demonstrated strength appears to be raising investor capital and structuring transactions, not operating the underlying businesses successfully. The compensation structure rewards raising and acquiring assets more reliably than it rewards producing strong investor outcomes. Meanwhile, the investments I participated in have materially underperformed the expectations presented when I invested. In the storage fund, construction remained unfinished years after acquisition, occupancy was below target, distributions were suspended and the fund was not generating positive cash flow after debt payments and fund expenses. In the car-wash investment, distributions have been far below the stated preferred-return rate. These results have caused me to question whether the organization has the operational discipline and business-management capabilities needed to execute successfully after a deal is funded. I cannot know the principals’ intentions, and neither investment has completed its final exit. However, based on the execution problems, limited distributions and fee structure I have observed, I believe the incentives are poorly aligned with investors. I would not invest with this sponsor again.

Invested in PIC Car Wash 2 Fund in 2022 through Next Level Income (Chris Larsen). NOI was way off projections from day one. Distributions have been almost non-existent for 2 years. Updates are helpful but do not provide any timeline or horizon for distribution resumption and/or exit. Meanwhile the GPs continue to collect their asset management fee every year that the fund drags on. Disappointed with the GPs.