Introduction
The Magnolia Group, LLC (“The Magnolia Group” or the “Firm”) is an investment adviser registered with
the United States Securities and Exchange Commission (“SEC”), with principal offices in Omaha, Nebraska.
The Magnolia Group, LLC is privately held and is owned 100% by Adam K. Peterson, its founder and
Managing Member. The Firm was established in November 2012 and became registered as an investment
adviser in August of 2014.
The Magnolia Group provides investment advisory services to the Magnolia Capital Fund, LP, the Magnolia
Capital Opportunity Fund, LP, the Real Estate Fund I, LLC, Magnolia BOC I, LP, and Magnolia BOC II, LP,
collectively (“clients”).
Private Fund Asset Management
The Capital Fund
The Magnolia Group provides investment advisory services to a private investment fund, the Magnolia
Capital Fund, LP, a Delaware limited partnership (the “Capital Fund”). The Magnolia Group serves as the
general partner (in such capacity, the “General Partner”) and investment adviser to the Capital Fund with
sole authority to manage and control the business affairs of the Capital Fund as well as exclusive portfolio
management responsibilities pursuant to the Capital Fund’s Limited Partnership Agreement (“Partnership
Agreement”). The Magnolia Group manages the Capital Fund’s assets based on the investment objectives
and restrictions of the Capital Fund as outlined in the Capital Fund’s Confidential Private Offering
Memorandum (“Memorandum”), rather than on the individual needs and objectives of the limited
partners in the Capital Fund.
While the Capital Fund’s assets will be primarily invested in publicly traded common stock, the Capital
Fund is authorized to invest in any other securities, instruments, derivatives, and other investments
deemed appropriate by The Magnolia Group, including, but not limited, preferred stock, options on stocks
and indices, warrants, bonds, debentures, convertible securities and other debt obligations, exchange
traded funds, swaps, forwards, futures, indices, structured and other synthetic securities and related
derivative instruments (including those relating to equity securities, equity indices, interest rate products,
fixed-income products, currencies and indices), securities of foreign issuers, private equity, and non-
marketable investments.
Investments in the Capital Fund are suitable for “Accredited Investors” as defined in Rule 501(a) of the
Securities Act of 1933 and “Qualified Clients” as defined under Rule 205-3 of the Investment Advisers Act
of 1940 (“Advisers Act”). Investors interested in the Capital Fund should refer to the Partnership
Agreement and the Memorandum for important information regarding investment objectives, risks, fees,
and additional disclosures for a complete understanding of the terms and conditions for investing in the
Capital Fund.
The Magnolia Capital Opportunity Fund, LP
The Magnolia Group provides investment advisory services to a private investment fund, the Magnolia
Capital Opportunity Fund, LP, a Delaware limited partnership (the “Opportunity Fund”). The Magnolia
The Magnolia Group, LLC Page 5 Form ADV Part 2A
Group serves as the general partner (in such capacity, the “General Partner”) and investment adviser to
the Opportunity Fund with sole authority to manage and control the business affairs of the Opportunity
Fund as well as exclusive portfolio management responsibilities pursuant to the Opportunity Fund’s
Limited Partnership Agreement (“Partnership Agreement”). The
Magnolia Group manages the
Opportunity Fund’s assets based on the investment objectives and restrictions of the Opportunity Fund
as outlined in the Opportunity Fund’s Confidential Private Offering Memorandum (“Memorandum”),
rather than on the individual needs and objectives of the limited partners in the Opportunity Fund. The
Opportunity Fund was created for the purpose of purchasing securities that the Capital Fund has its
optimal allocation to (as determined by The Magnolia Group.)
While the Opportunity Fund’s assets will be primarily invested in publicly traded common stock, the
Opportunity Fund is authorized to invest in any other securities, instruments, derivatives, and other
investments deemed appropriate by The Magnolia Group, including, but not limited, preferred stock,
options on stocks and indices, warrants, bonds, debentures, convertible securities and other debt
obligations, exchange traded funds, swaps, forwards, futures, indices, structured and other synthetic
securities and related derivative instruments (including those relating to equity securities, equity indices,
interest rate products, fixed-income products, currencies and indices), securities of foreign issuers, private
equity, and non-marketable investments.
Investments in the Opportunity Fund are suitable for “Accredited Investors” as defined in Rule 501(a) of
the Securities Act of 1933 and “Qualified Clients” as defined under Rule 205-3 of the Investment Advisers
Act of 1940 (“Advisers Act”). Investors interested in the Opportunity Fund should refer to the Partnership
Agreement and the Memorandum for important information regarding investment objectives, risks, fees,
and additional disclosures for a complete understanding of the terms and conditions for investing in the
Opportunity Fund.
The Real Estate Fund
The Magnolia Group provides investment advisory services to Magnolia Real Estate Fund I, LLC (“Real
Estate Fund”), an Oklahoma limited liability company managed by Ellbar Partners Management, LLC.
Ellbar Partners Management, LLC is wholly owned and controlled by Ellbar Partners, LLC, an unaffiliated
private single family office.
The Magnolia Group provides non-discretionary portfolio management services to the Real Estate Fund
in accordance with the investment guidelines set forth in their amended Investment Management
Agreement (“IMA”). The Firm does not tailor its investment advice to the needs of investors in the Real
Estate Fund.
The assets of the Real Estate Fund are primarily invested in other real estate funds that are managed by
The Aligned Group, LLC (“TAG”). Adam Peterson is a 25% owner of TAG, and acts as a co-manager of the
real estate funds TAG manages. The Real Estate Fund also directly holds real estate investments distinct
from those held through the real estate funds managed by TAG.
Funds of One
The Magnolia Group also provides investment advisory services to two funds of one, Magnolia BOC I, LP
(“BOC”) and Magnolia BOC II, LP (“BOC II”). Each is comprised of a single limited partner investor and is
intended to hold only one asset. The Magnolia Group provides only non-discretionary portfolio
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management services to BOC II, LP, in accordance with the investment guidelines set forth in the limited
partnership agreement.
Assets Under Management
As of December 31, 2019, The Magnolia Group manages approximately $977,601,082 of assets on a
discretionary basis and $52,058,069 of assets on a non-discretionary basis.