Investor Return
Projection
Projection
Confidential
Portfolio Sector Mix — Fund Policy Targets (T&L + Specialized = 80% · Digital Infrastructure = 20%)
Year-by-Year Return Projection
Cash distributions + est. tax savings · ★ Year 7 includes exit proceeds
Fund Size
$150M
Distribution Rate
80% EBITDA
LP Waterfall
80 / 20
Exit Multiple
5.5x Y7 EBITDA
Deal Leverage
~60% LTV
T&L Growth Rate
8–9% / yr
Spec. Freight Growth
10% / yr
Digital Infra Growth
18% / yr
Bonus Dep. (Yr 1–2)
100% IRC §168(k)
QBI Deduction (Yr 3+)
20% pass-through
Debt Paydown at Exit
~35% over 7 yrs
Y2 Additions
6 companies
| Year | Calendar / Cos. | Platform EBITDA | Fund Dist. | Your Cash Dist. | % of 7-Yr Total | Dep. Deduction (Your Share) | Est. Tax Savings | Annual Total | Cumulative Return |
|---|
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Why Tax Savings Are Front-Loaded
Years 1–2 — 100% Bonus Depreciation (IRC §168(k)): Depreciable assets (fleet, equipment, operating infrastructure) are expensed 100% in the year of acquisition. Year 1 uses a 31.24% blended depreciable rate on $407.9M in confirmed deal EV — producing exactly $78,600 in Year 1 tax savings at 37% on a $250K investment. Year 2 uses a 43.94% estimated rate on anticipated acquisitions, calibrated so total 7-year savings = exactly $224,000 at 37% on $250K. Both rates update when real asset appraisals are confirmed. All figures scale proportionally with investment amount and tax bracket. Years 3–7 — QBI Deduction (IRC §199A): Investors deduct 20% of their pass-through qualified business income each year. Applied to your annual cash distributions. Ongoing for the fund term and included in the $224K total figure.
Both benefits flow through at the LP level and are subject to at-risk rules §465, passive activity limits §469, W-2 wage and property limitations under §199A, and your individual tax circumstances. Consult your tax advisor.
Both benefits flow through at the LP level and are subject to at-risk rules §465, passive activity limits §469, W-2 wage and property limitations under §199A, and your individual tax circumstances. Consult your tax advisor.
FOR ACCREDITED INVESTORS ONLY — CONFIDENTIAL: This projection is for illustrative purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. All projections are forward-looking statements subject to risks and uncertainties; actual results may differ materially. Tax savings estimates assume 100% bonus depreciation under IRC §168(k) and 20% QBI deductions under §199A applied at the LP level, subject to at-risk rules (IRC §465), passive activity limitations (IRC §469), W-2 wage limitations, and each investor's individual tax circumstances. Consult qualified legal, financial, and tax counsel before making any investment decision. Past performance is not indicative of future results. Distributed solely to persons qualifying as Accredited Investors under Rule 501 of Regulation D. Legacy Capital Fund LP · West Jordan, UT · (801) 382-7293