LPC Fund I deploys into Gold & Precious Metals / Gems, Art & Cultural Assets, and Real Estate. Every position is relationship-sourced, off-market, asset-backed, and underwritten to a defined exit before capital is committed.
All three verticals share the same underwriting spine: relationship-sourced access, asset-backed collateral, pre-defined exit, and OECD-aligned diligence. Bolivia mineral trade is the anchor flow; Art and Real Estate provide diversification across hold-period and macro-sensitivity profiles.
LPC's anchor flow is licensed mineral trade out of Bolivia: gold doré, silver, and rough/cut gemstones acquired from Ministry-of-Mining-licensed Bolivian exporters and delivered into pre-negotiated Miami refinery purchase orders. Capital is deployed via third-party escrow against verified milestones — never advanced to the exporter.
Each trade is a self-liquidating, ~90-day cycle: mine-site purchase → export documentation → cross-border logistics → refinery assay and payment. Gross IRR per trade is targeted at 30 – 45%, with the Bolivia book capped at 25% of AUM and a single-trade ceiling defined in the IPS.
Detailed corridor mechanics, vendor stack, and worked-example economics live in Bolivia Operations.
| Step | Requirement | Control |
|---|---|---|
| Origination | Licensed Bolivian exporter with verified Ministry of Mining export authorization. | License + KYC file held by in-country counsel; refreshed annually. |
| Counterparty | OECD Annex II screen (no conflict-affected/high-risk areas); FCPA training for all parties. | CCO sign-off required per trade. |
| Capital Deployment | 100% via third-party escrow; staged release tied to milestones. | No advance capital to exporter under any circumstance. |
| Logistics | Established freight + custody operators with chain-of-custody documentation at every leg. | Continuous tracking + insured transit. |
| Exit | Pre-negotiated Miami refinery purchase order signed before mine-site capital release. | No open-ended exit risk; assay protocol pre-agreed. |
| Reporting | Per-trade P&L, customs records, and exporter documentation reviewed by CCO each quarter. | Quarterly LP letter discloses Bolivia book performance. |
Bolivia is a top-five global producer in multiple critical and precious minerals, sitting in a structural working-capital gap between mine-site purchase and refinery payment. Western banks have largely exited the corridor under post-2018 de-risking. The result: licensed exporters with documented flow but no institutional financing partner. LPC operates as a disciplined working-capital provider, not a speculative principal.
Art positions originate through estate, advisory, and gallery relationships — never through public auction. The Firm targets blue-chip individual works, estate-driven collections, and structured cultural transactions where motivated counterparties (estate timing, illiquidity events, generational transitions) create a price advantage relative to auction comparables.
Every acquisition is supported by a current third-party appraisal, condition report, and provenance file. Storage is climate-controlled and insured at full replacement value. Exit pathways — private sale, advisory consignment, or auction — are mapped at entry and reviewed quarterly.
Cultural Assets are part of the broader strategy framework discussed on the Strategy page.
| Step | Requirement | Control |
|---|---|---|
| Provenance | Continuous chain of title; AAM/AAMD-aligned due diligence; Art Loss Register clearance. | External provenance counsel sign-off per work. |
| Authentication | Catalogue raisonné citation or recognized scholar/foundation opinion where applicable. | No purchase without satisfactory authentication file. |
| Valuation | Current third-party appraisal benchmarked against auction comparables and private-sale data. | Independent valuation review on illiquid positions, refreshed annually. |
| Condition | Conservator-issued condition report at acquisition; periodic re-assessment. | Material condition changes trigger valuation re-review. |
| Custody & Insurance | Bonded fine-art storage with climate control, security, and documented chain-of-custody. | All-risk fine-art insurance at full replacement value. |
| Exit Strategy | Defined exit pathway — private sale, advisory consignment, or auction — mapped at entry. | IC reviews exit pathway each quarter; switches require IC approval. |
Cultural assets are a low-correlation, asset-backed diversifier. The off-auction sourcing channel produces a structural entry-price advantage that listed art funds and auction-driven buyers cannot replicate. Hold periods (12 – 36 months) and macro-sensitivity profile differ meaningfully from the ~90-day Bolivia trade cycle, providing portfolio-level smoothing without diluting the concentrated-positions thesis.
Real estate exposure is acquired off-market through legal-referral networks — estate counsel, distressed-asset attorneys, and probate practitioners — rather than brokerage marketplaces. The Firm targets pre-entitlement parcels, distressed positions, off-market land aggregations, and structured transactions where a control position can be acquired below replacement-cost or below comparable-sale benchmarks.
Every position is underwritten for control, not narrative: clean title, defined value-creation lever (entitlement, repositioning, partition, or workout), bounded capex, and a mapped exit. Deal-level non-recourse leverage is permitted up to 50% LTV; speculative development is prohibited.
Concentration limits, leverage caps, and prohibited investments live in the Strategy page (IPS §4.2 and §6).
| Step | Requirement | Control |
|---|---|---|
| Title | Clean title insurance commitment; survey; encumbrance and lien review. | Counsel sign-off; no closing on uninsurable title. |
| Value-Creation Lever | Defined and bounded — entitlement, repositioning, partition, workout. Speculation excluded. | IC memo names the lever and capex envelope. |
| Underwriting | Comparable-sale and replacement-cost benchmarking; sensitivity on entitlement timing and capex overrun. | Bear/Base/Bull case modeled before commitment. |
| Environmental | Phase I ESA on every parcel; Phase II if Phase I flags risk. | No closing on unresolved Phase II findings. |
| Leverage | Deal-level, non-recourse, capped at 50% LTV. No fund-level leverage. | IPS §6 — hard cap, no exceptions. |
| Exit Mapping | Defined exit (refinance / operator sale / partition / wholesale) named at entry. | Quarterly IC review; exit switch requires IC approval. |
Off-market real estate sourced via legal referral networks creates the same access advantage as the Bolivia and Art books: relationships and licensing produce visibility before any competitive process begins. Underwriting for control (rather than for a speculative narrative) keeps the thesis defensible across rate and macro cycles. Bounded capex and non-recourse, deal-level leverage prevent compounding losses if a single position underperforms.
| Vertical | Year 1 Allocation Target | Hard Cap (% of AUM) | Position-Size Range | Hold Period |
|---|---|---|---|---|
| Bolivia Metals & Gems | 40 – 55% | 25% open at any time | $250K – $500K (co-invest above) | ~90 days |
| Art & Cultural Assets | 15 – 25% | 20% single-position | $250K – $2M | 12 – 36 months |
| Real Estate | 15 – 25% | 20% single-position | $500K – $2.5M | 18 – 48 months |
| Special Situations & Reserves | 10 – 20% | Per IPS §6 | Variable | Variable |
Allocations are targets, not floors. The GP shifts mix in response to deal-flow quality and portfolio risk, subject to IPS hard caps. Single-position cap of 20% of deployed capital applies across all verticals; co-invest is used above the cap.
Every position is collateralized by a tangible underlying — physical metal, an insured work of art, or titled real estate. No speculative or derivative-only positions.
Deal flow originates through trusted networks — licensed exporters, estate advisers, legal-referral counsel — before any competitive process begins.
Refinery PO, advisory pathway, or refinance/sale strategy mapped at entry. Exits are not improvised.
OECD-aligned for minerals, AAMD-aligned for art, Phase I ESA + insured title for real estate. Files survive audit.
8 – 15 deep positions in Years 1 – 2, each sized to materially impact portfolio outcomes — actively managed entry through exit.
No fund-level leverage. Deal-level non-recourse only, capped at 50% LTV — applied selectively, not by default.
For Bolivia trade-cycle mechanics, vendor stack, and worked-example economics see Bolivia Operations. For position-size targets, sensitivity modeling, and tier economics see Financials & Fees. For concentration limits, prohibited investments, and the full IPS framework see Strategy.