Description of Advisory Firm and Principal Owners.
Acorn Capital Advisors, LLC (the “Firm” or “Acorn”), based in New York, NY, was formed in
2017 by Anders Hove. Mr. Hove retains 99.9% ownership in the firm and 100% ownership of its
affiliate, Acorn Capital Advisors GP, LLC, the General Partner to the firm’s private fund client s.
Acorn provides investment advisory services for the investment of private capital in pooled
investment vehicles, Acorn Bioventures, LP and Acorn Bioventures 2, LP (collectively, the
“Funds”), which are exempt from registration under the Investment Company Act of 1940, as
amended (the “1940 Act”) and whose securities are not registered under the Securities Act of 1933,
as amended (the “Securities Act”).
The Firm’s advisory clients are the Funds, both limited partnerships formed in Delaware, and an
affiliate of Acorn serve as the General Partner. The limited partners of the Funds are either
accredited or qualified investors, and limited partners of the Funds are referred to in this Firm
Brochure as “investors” or “limited partners”.
Type of Advisory Services.
Acorn provides investment advisory services to the Funds, which operate as healthcare small cap
public/private equity investment vehicles, with a focus on the biopharmaceutical sector (“public
venture capital”).
The investment strategy seeks to exploit valuation inefficiencies due to differences in investment
approach and time horizon from traditional public biotech investors by selectively making
concentrated investments in companies which have significant valuation dislocation, often
caused by clinical or regulatory issues. The Funds invest the majority of their capital in public
securities and will make opportunistic late-stage private investments as well.
Client Tailored Service and Client Imposed Restrictions.
The Firm’s services are designed to achieve the investment objective of the Funds. Acorn will
only make investment recommendations that are consistent with the stated objectives, strategy and
investment guidelines of the Funds as set forth in the Funds’ private placement memorandum,
limited partnership agreements and applicable side letters with limited partners, if any.
Wrap Fee Programs.
A wrap fee program is an investment program where the investor pays one stated fee that includes
management fees, transaction costs, fund expenses, and any other administrative fees. Acorn does
not participate in any wrap fee programs.
Regulatory Assets under Management (“RAUM”).
As of December 31, 2023, Acorn managed approximately $246,624,703.00 of private Fund client
assets, all of which are managed on a discretionary basis.
The RAUM includes the estimated fair market value of the assets, cash on hand, and remaining
capital commitments of the Funds as of December 31, 2023.