Black Arch II
Private Credit Through Short Duration Invoice Factoring
Expected Monthly Distributions. • Open Ended Structure. • Verified Commercial Receivables.
Verified accredited investors only · Rule 506(c)Targets are objectives only and are not guaranteed. Returns to limited partners are limited to the 8% annual hurdle — see Important Considerations below.
Why Investors Like Black Arch II
Monthly Income
The Fund expects to distribute net investment income monthly, paid in cash or reinvested. Distributions are not guaranteed and depend on available cash, expenses, and General Partner discretion.
Open Ended
An evergreen fund with no fixed term, accepting subscriptions monthly at net asset value. Redemptions are quarterly at NAV after a 12-month lock-up, on 90 days’ notice, subject to a 25% gate, holdback and suspension rights.
Short Duration
Capital is put to work against invoices that typically pay in approximately 30 to 90 days, allowing frequent recycling of capital.
Verified Receivables
Factor Seed deploys capital only after verifying completed work and the issued invoice, against known account debtors.
Experienced Operators
Led by Zach Smith and Dustin Kearl, who co-managed the predecessor BlackArch Debt Opportunity Fund. Zach founded Funded Today, LLC ($654M+ raised across 4,000+ crowdfunding campaigns); Dustin brings accounting, tax, and CFO experience.
Alignment
The General Partner and its affiliates subscribe alongside investors, at least the lesser of 2% of total subscriptions or $300,000.
How Capital Works
Factor Seed operates the factoring platform. Black Arch II provides the investment capital through a secured credit facility, and primarily lends to Factor Seed — so repayment depends on Factor Seed and its collateral.
Underwrites in-house, using Experian, Creditsafe and public-records data, and verifies completed work before funding
Lowers the advance rate when invoice, debtor or industry risk is higher
Software monitors exposure continuously to keep funding within approved credit limits
Targets 10% per obligor and 25% per sector at the operator level, with a separate retained buffer beyond the reserve
Single-borrower concentration
The Fund expects to deploy a substantial majority of its capital in credit facilities to a single borrower, Factor Seed. Investor returns depend on that borrower’s performance and its collateral.
Returns limited to the hurdle
Limited partners’ returns are effectively limited to 8% per annum plus return of capital. The General Partner receives an incentive allocation of net profits above the 8% hurdle, and there is no separate preferred return.
Limited liquidity
Redemptions are quarterly at NAV after a 12-month lock-up, on 90 days’ notice, and are subject to a 25% gate, a payment holdback, side pockets and the General Partner’s right to suspend. Interests are not freely transferable.
Not for everyone
Investors must be verified accredited investors. An investment is speculative, may not suit investors who need liquidity or consistently recurring income, and could lose all of its value.
Predecessor Fund
BlackArch Debt Opportunity Fund LP
Reported results — unverified
Reported result on one final factoring transaction; unaudited. The calculation period, methodology and comparability have not been independently verified. This is not the performance of Black Arch II, and past performance does not guarantee future results.
Let's Talk About Black Arch II
Request the Private Placement Memorandum, fund documents, and subscription package. All investors are subject to accredited investor verification.