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Description of Advisory Firm
LDR Capital Management, LLC is an investment adviser registered with the Securities and Exchange Commission ("SEC")
pursuant to the Investment Advisers Act of 1940 (the "Advisers Act"). Organized as a limited liability corporation under the laws
of the state of NY, the Firm’s headquarters is located at 300 Park Avenue, Suite 501, New York, NY. LDR has been in business
since October 2011 and is primarily owned by its Founder, Lawrence D. Raiman, who undertakes all of the Adviser's significant
strategic and administrative decisions. (Please refer to Mr. Raiman's Form ADV Part 2B - Brochure Supplement for additional
information on his formal education and business background details.)
As used in this Brochure, the words "we," "our," and "us" refer to LDR Capital Management, LLC and the words "you," "your,"
and "client" refer to you as either a client or prospective client of our Firm. Reference to “Associates” or “Supervised Persons”
means LDR’s Members, Officers, Directors, or other persons occupying similar statuses or performing like functions, employees,
or other individuals who provide investment advice on LDR’s behalf subject to our supervision and control.
LDR serves as a fiduciary to clients, as defined under the applicable laws and regulations. As a fiduciary, LDR upholds a duty
of loyalty, fairness, and good faith towards each client and seeks to mitigate potential conflicts of interest. In providing
investment advice and managing client assets, LDR strives to act with a degree of care, skill, prudence and diligence under the
circumstances that a prudent person acting in a fiduciary capacity would use. LDR's relationship with each client is non-
exclusive; in other words, the Firm provides advisory services to multiple clients. LDR seeks to avoid situations in which one
client's interest may conflict with the interest of another of its clients.
LDR's advisory services are made available to clients primarily through its investment professionals - individuals associated with
the firm as Investment Advisor Representatives (“Advisor Representatives”). Each advisory relationship at LDR is managed by
one or more Advisor Representatives registered with the Firm, who serve as the primary point of contact between LDR and the
client. Advisor Representatives collect financial profile information from clients and recommend specific advisory services or
programs deemed appropriate for their situation, financial circumstances, goals and objectives.
Following is a summary description of advisory services covered by this Brochure. Please consult the applicable client
Agreement and fee schedules for additional information regarding each service.
Types of Advisory Services
On a largely discretionary basis, LDR’s investment professionals emphasize continuous personal client contact and interaction
in providing the following types of advisory services:
Private fund investment supervisory services, and
Investment management advisory services.
LDR's advisory services are designed and aimed to complement each client's specific needs, as described within its written
Investment Advisory Agreement (the “Agreement”) that will disclose, in substance, the scope of service, contract term, advisory
fee - or formula for computing the fee, amount or manner of calculation of any pre-paid fee to be returned to the client in the
event of contract termination, and type of discretionary power granted to LDR. Final advisory fee structures are documented
within the written Agreement, which cannot be assigned without client consent.
Advisor Representatives are restricted to providing the services and fees specified within each contract, subject to the client's
listed objectives, limitations, and restrictions. Contracts must be completed and executed to engage in LDR’s advisory services.
Clients may engage LDR for additional services at any time. (Please refer to Item 5: Fees & Compensation and Item 16:
Investment Discretion for further details on advisory services fees and account management styles.)
The investment strategies we employ on behalf of our clients are described in greater detail in Item 8: Methods of Analysis,
Investment Strategies & Risk of Loss and, as applicable, in each client's confidential offering documents, governing documents
or Investment Advisory Agreements (collectively, the "Governing Documents").
Client Responsibilities
LDR's advisory services depend on and rely upon the information received from clients. Advisor Representatives will rely upon
the accuracy of information furnished by the client or on their behalf without further investigation. LDR will not be required to
verify the information obtained from clients or other professional advisors, such as accountants or attorneys.
LDR will rely on the written and oral instructions received by the client and is not responsible for any loss arising from following
such instructions. The Custodians/broker-dealers LDR uses to execute the client’s account transactions must follow LDR’s
instructions. LDR is not responsible for losses to the client's account because of the Custodian's or broker-dealer's failure to
follow these instructions.
Clients will acknowledge and agree to their obligation to promptly notify LDR in writing if any information material to the advisory
services to be provided changes,
information previously provided that might affect how their account should be managed occurs,
or if previously disclosed data becomes inaccurate. The client or their successor shall also promptly notify us in writing of the
client's dissolution, termination, merger, or bankruptcy if the client is other than a natural person and the occurrence of any other
event that might affect the validity of their Agreement or our authority thereunder.
Following is a summary description of advisory services covered by this Brochure. Please consult the applicable client Advisory
Agreement and fee schedules for additional information regarding each service.
Private Fund Investment Supervisory Services
Currently, LDR advises and provides private fund investment supervisory services to the following funds (collectively, the
“LDR Funds”): (1) LDR Preferred Income Fund, LLC, a Delaware limited liability company (the “U.S. Preferred Income Fund”),
(2) LDR Preferred Income Fund, Ltd., a Cayman Islands exempted company that invests all of its assets substantially through
the U.S. Fund (the “Non-U.S. Preferred Income Fund,” and together with the U.S. Preferred Income Fund, the “Preferred Income
Funds”).
Our services are offered to each LDR Fund pursuant to the terms of an Agreement. The LDR Funds do not offer shares/interests
to the public. LDR Fund interests are offered only in private placements to qualified investors. The terms applicable to investors
in the LDR Funds are detailed in each Fund’s confidential offering documents provided to prospective investors. LDR Preferred
Income, LLC serves as the Managing Member of the U.S. Preferred Income Fund. Each entity is referred to herein as a
“Managing Member” and together as the “Managing Members.”
Investment Management Advisory Services
LDR provides investment management advisory services to (1) a mutual fund (the “Mutual Fund”) and a series of the World
Funds Trust (a registered investment company that supervises LDR’s management of the Mutual Fund), and (2) high net worth
individuals and institutional clients on a managed account basis (such accounts, the “Managed Accounts”). Such services are
provided pursuant to each client’s respective Agreement.
References throughout this document to “clients” refer to the LDR Funds, the Mutual Fund, each of the Managed Accounts,
and any other funds or accounts we may advise in the future.
Client Tailored Services
LDR offers the same suite of services to all its clients. However, some clients will require only limited services due to the nature
of their investments. Limited services are discounted at LDR's discretion, as defined in each client's written Agreement.
Although we provide advice predominately on the products listed herein, LDR reserves the right to advise on any investment
product deemed suitable for a client's specific circumstances, needs, and individual goals and objectives. We may also advise
on any investment held in a client's portfolio at the inception of our advisory relationship. As appropriate, we will use other
securities as necessary to help diversify a portfolio when applicable.
Client-Imposed Restrictions
While each of our clients will follow the general strategies stated below, clients may, at any time, impose restrictions on our
discretionary authority according to their preferences, values, beliefs, investment guidelines, or other restrictions, as outlined
within their Governing Documents, as applicable. For example, specific Managed Account clients may limit LDR's authority by
limiting particular securities purchased for their account(s). All restriction requests must be submitted in writing. Reasonable
efforts are made to comply with client investment guidelines by standard industry practices. In imposing restrictions, it is
essential to note that such conditions can affect a client's account performance and result in variations from a similarly managed
account without restrictions. Client-imposed account constraints and variations could result in positive or negative performance
differences for their portfolio compared to the investment program's performance composite. Investment structures
recommended can also prevent controlling a client's specific outcome.
Upon receiving a client's written restrictions, we will discuss the request's feasibility to ensure expectations are met and confirm
the client's acknowledgment and understanding of the imposed restrictions' possible outcomes. If client-imposed restrictions
prevent a client's account's proper servicing or require substantial deviations from recommendations, LDR reserves the right to
end the client relationship. In no event and regardless of the advisory service provided are we obligated to make any investment
or enter any transaction we believe in good faith would violate any federal or state law or regulation.
Wrap Fee Programs
A wrap fee program is defined as any advisory program under which a specified fee or fees not based directly upon transactions
in a client's Account are charged for investment supervisory services, which may include portfolio management or advice
concerning the selection of other investment advisers and the execution of client transactions. LDR does not offer a wrap fee
program as part of its advisory services.
Assets Under Management
As of December 31, 2023, LDR managed $591,135,235 of regulatory assets under management, all of which were managed
on a discretionary basis.