Prophet Equity Management Ii LLC

Prophet Equity Management II LLC, established in Southlake, Texas, is a registered investment adviser managing the Prophet Equity II LP Fund, formed in December 2013. The firm specializes in acquiring controlling equity positions in underperforming lower-middle-market companies to enhance their operations. With total assets under management of $188,525,958 as of March 30, 2024, all managed on a discretionary basis, Prophet Equity Management II LLC provides investment advisory services to the Fund, focusing on strategic, asset-intensive companies with sustainable competitive advantages. The firm charges an annual management fee of 2% of total capital commitments during the initial investment period, adjusting to 2% of total capital contributions post-initial period. Additionally, the General Partner is eligible for performance allocations. Investors in the Fund, including endowments, insurance companies, and high net worth individuals, must meet accreditation requirements and typically invest a minimum of $5 million. Prophet Equity Management II LLC offers investment advice directly to the Fund, not individual investors, emphasizing equity and equity-related securities in privately negotiated transactions. The firm's investment strategy involves hands-on operational improvements and growth plans for portfolio companies. Investors should be aware of the risks involved, including market fluctuations, leverage, and potential loss of investment. Prophet Equity Management II LLC acts with discretionary authority over the Fund's assets, aligning with stated investment objectives.