Overview
A. Description of the Advisory Firm
Nantahala Capital Management, LLC, a Massachusetts limited liability company, is the
investment manager to the Clients, as defined below. Nantahala was organized in May 2004.
Wilmot B. Harkey and Daniel J. Mack are the principal owners and Managing Members of
Nantahala.
B. Types of Advisory Services
Nantahala provides investment advice and management to privately placed investment
funds including limited partnerships (the “Partnerships”) and non-U.S. companies or limited
partnerships of which Nantahala is the investment manager (the “Offshore Funds,” jointly
with the Partnerships, the “Funds”). The Offshore Funds pursue their investment activities
by investing all their assets in the Partnerships in a mini-master structure. Nantahala’s
clients also include separately managed accounts and funds of one (“Separate Accounts”),
primarily for other pooled investment vehicles. The Funds and Separate Accounts are jointly
referred to herein as “Clients.”
Nantahala utilizes a long-term fundamental value investing methodology with a primary
focus on small to mid-sized U.S. companies. The Clients’ investment objectives are generally
to seek strong and consistent risk-adjusted returns. Nantahala focuses on investments in
equity, fixed-income, and equity-derivative securities. Nantahala will, however, invest in
other asset classes of securities as opportunities arise. Nantahala intends to achieve the
Clients’ objectives through value-oriented securities selection and
disciplined risk
management, holding long and short positions while, within certain investment strategies,
generally seeking to maintain near market-neutral exposure to certain risk factors. While
Nantahala follows the same investment approach for most Clients, some individual Clients
follow strategies that have differing or more limited focuses, more concentrated investments
in companies that are in Nantahala’s primary strategy portfolios, or differing approaches to
risk management.
Some Clients are offering interests (the “Interest(s)”) to certain qualified investors as
described in response to Item 7, below (such investors or prospective limited partners are
referred to herein as “Investors”).
C. Client Tailored Services and Client Imposed Restrictions
Advisory services are tailored to achieve the Clients’ investment objectives. Generally,
Nantahala has the authority to select which and how many securities and other instruments
to buy or sell without consultation with the Clients or their Investors. Arrangements with
Separate Accounts may vary.
D. Wrap Fee Programs
Nantahala does not participate in wrap-fee programs.
E. Amounts Under Management
Nantahala's assets under management (AUM) based on the net asset value of its Funds and
Separate Accounts as of December 31, 2023 were approximately:
Discretionary Amounts: Non-Discretionary Amounts: Date Calculated:
$ 1,002,544,551 $0 December 31, 2023
Nantahala’s calculated AUM figure does not include committed but uncalled capital.