Nebari Partners, Llc

Allegations: ON SEPTEMBER 17, 2024, THE SEC ANNOUNCED A SETTLEMENT AGREEMENT WITH NEBARI PARTNERS, LLC ("NEBARI"), IN WHICH THE SEC ALLEGED THAT NEBARI IN 2021 AND 2022 FAILED TO CONDUCT AUDITS OF, AND TIMELY DISTRIBUTE AUDITED FINANCIAL STATEMENTS TO INVESTORS IN, CERTAIN SPECIAL PURPOSE VEHICLES ("SPVS") IN ACCORDANCE WITH SECTION 206(4) OF THE INVESTMENT ADVISERS ACT OF 1940 AND RULE 206(4)-2 THEREUNDER (THE "CUSTODY RULE"). THE CONDUCT DESCRIBED IN THE SEC SETTLEMENT ORDER RELATED TO 14 SPVS MANAGED BY RELATED PERSONS OF NEBARI. THE ORDER FOUND THAT INVESTORS IN THE SPVS WERE AFFORDED VISIBILITY INTO THEIR INVESTMENTS THROUGH OTHER MEANS, SUCH AS PERIODIC CAPITAL STATEMENTS AND FINANCIAL STATEMENTS PREPARED BY THE MANAGERS OF THE UNDERLYING INVESTMENTS. THE CONDUCT ALLEGED IN THE ORDER DID NOT EXTEND TO NEBARI NATURAL RESOURCES CREDIT FUND I LP, NEBARI NATURAL RESOURCES CREDIT FUND II LP OR NEBARI GOLD FUND 1, LP (THE "NEBARI FUNDS"). AS PART OF THE SETTLEMENT, NEBARI CONSENTED TO THE ENTRY OF A CEASE-AND-DESIST ORDER AND CENSURE, AND AGREED TO PAY A CIVIL MONEY PENALTY OF $80,000. NEBARI NEITHER ADMITTED NOR DENIED THE FINDINGS OF THE SEC SETTLEMENT ORDER, WHICH RESOLVED THE SEC'S INVESTIGATION. THE SEC SETTLEMENT ORDER ACKNOWLEDGED NEBARI'S PROMPT REMEDIAL ACTIONS. Status: Final Sanction Detail: THE SETTLEMENT ORDER INCLUDED A CIVIL MONETARY PENALTY IN THE AMOUNT OF $80,000, WHICH NEBARI PAID ON SEPTEMBER 19, 2024. Summary: ON SEPTEMBER 17, 2024, THE SEC ANNOUNCED A SETTLEMENT AGREEMENT WITH NEBARI PARTNERS, LLC ("NEBARI") IN WHICH THE SEC ALLEGED THAT NEBARI, IN 2021 AND 2022 FAILED TO CONDUCT AUDITS OF, AND TIMELY DISTRIBUTE AUDITED FINANCIAL STATEMENTS TO INVESTORS IN, CERTAIN SPECIAL PURPOSE VEHICLES ("SPVS") IN ACCORDANCE WITH SECTION 206(4) OF THE INVESTMENT ADVISERS ACT OF 1940 AND RULE 206(4)-2 THEREUNDER (THE "CUSTODY RULE"). THE ORDER FOUND THAT INVESTORS IN THE SPVS WERE AFFORDED VISIBILITY INTO THEIR INVESTMENTS THROUGH OTHER MEANS, SUCH AS PERIODIC CAPITAL STATEMENTS AND FINANCIAL STATEMENTS PREPARED BY THE MANAGERS OF THE UNDERLYING INVESTMENTS. THE CONDUCT DESCRIBED IN THE SEC SETTLEMENT ORDER RELATED TO 14 SPVS MANAGED BY RELATED PERSONS OF NEBARI AND DID NOT EXTEND TO NEBARI NATURAL RESOURCES CREDIT FUND I LP, NEBARI NATURAL RESOURCES CREDIT FUND II LP OR NEBARI GOLD FUND 1, LP (THE "NEBARI FUNDS"). THE SEC SETTLEMENT ORDER IS FINAL AND RESOLVES THE SEC'S INVESTIGATION. NEBARI PAID THE CIVIL MONETARY PENALTY ON SEPTEMBER 19, 2024.