June 25, 2020
Calibre Group Securities, LLC – Form CRS (Client Relationship Summary)
CALIBRE GROUP SECURITIES, LLC
Registered with the Securities and Exchange Commission as a Broker-Dealer
Is a Brokerage Account Right for You?
There are different ways you can get help with your investments. You should carefully consider which types of accounts and services are right for you.
We are a broker-dealer that provides opportunities to invest in partnerships and do not offer advisory accounts and services.
This document gives you a summary of the types of services we provide and how you pay. Please ask us for more information. There are some suggested questions below.
Relationships and Services
We are a broker-dealer that offers opportunities to invest in partnerships (limited liability companies). We do not offer any other investment products or services. Each partnership makes debt or equity investments and sometimes both debt and equity investments in a private company. The private company may be a manufacturer or processor in industries related to the domestic steel, aluminum and metals.
You should only consider making these investments if you are an accredited investor with a high net worth and can withstand the possibility of losing your entire investment. The investments are not liquid and cannot be sold. You should expect to hold these investments for many years. There are no markets available to value or sell these investments.
We do not make investment recommendations or provide investment advice. You will evaluate the investment opportunity along with the help of your investment, tax, legal and other advisors to make the investment decision.
Our Obligations to You
We must abide by certain laws and regulations in our interactions with you.
When we provide any service to you, we must treat you fairly and comply with a number of specific obligations. Unless we agree otherwise, we are not required to monitor your portfolio or investments on an ongoing basis. Our interests can conflict with your interests.
Fees and Costs
Fees and costs affect the value of your investment over time. Please ask your financial professional to give you personalized information on the fees and costs that you will pay.
All fees and costs are disclosed in the partnership agreement. You will pay a fee at the time you make the investment which is paid to Calibre. A portion of your investment is deposited into the partnership’s bank account to fund partnership operating expenses including tax, legal and banking fees. Calibre may be paid an additional fee based on the performance of the investment.
Compare with Typical Advisory Accounts
You could also open an advisory account with an investment adviser, where you will pay an ongoing asset-based fee that is based on the value of the cash and investments in your advisory account. Features of a typical advisory account include:
- Advisers provide advice on a regular basis. They discuss your investment goals, design with you a strategy to achieve your investment goals, and regularly monitor your account.
- You can choose an account that allows the adviser to buy and sell investments in your account without asking you in advance (a “discretionary account”) or the adviser may give you advice and you decide what investments to buy and sell (a “non-discretionary account”).
- Advisers are held to a fiduciary standard that covers the entire investment advisory relationship. For example, advisers are required to monitor your portfolio, investment strategy and investments on an ongoing basis.
- If you were to pay an asset-based fee in an advisory account, you would pay the fee periodically, even if you do not buy or sell. You may also choose to work with an investment adviser who provides investment advice for an hourly fee, or provides a financial plan for a one-time fee.
- For an adviser that charges an asset-based fee, the more assets you have in an advisory account, including cash, the more you will pay the adviser. So the adviser has an incentive to increase the assets in your account in order to increase its fees.
Conflicts of Interest
We benefit when you make an investment with Calibre.
A Calibre representative may also be part of the management of the partnership. Partnership managers approve distributions to investors as well as make decisions on the disposition of the assets in the partnership. Calibre may be entitled to a fee based on performance at the time partnership assets are sold.
We encourage you to seek out additional information.
To report a problem to the SEC, visit Investor.gov or call the SEC’s toll-free investor assistance line at (800) 732-0330. To report a problem to FINRA, (844) 574-3577. If you have a problem with your investments, investment account or a financial professional, contact us in writing at Calibre Group Securities, LLC 707 Grant St., Ste. 2320 Pittsburgh, PA 15219.
There are free and simple tools available to you and your financial, investment and tax advisors at http://Investor.gov/CRS which provides educational materials about broker-dealers and investing.
Key Questions to Ask
Ask our financial professionals these key questions about our investment services and accounts.
- Given my financial situation, why should I choose a brokerage account?
Calibre Group Securities does only offers qualified investors an opportunity to invest in partnerships. You should consult your financial, tax and legal advisors on what is the best for you.
- Do the math for me. How much would I pay per year for an advisory account? How much for a typical brokerage account? What would make those fees more or less? What services will I receive for those fees?
Each partnership could have different fee arrangements. They are fully explained before you invest. When investing in a Calibre partnership there is usually fee paid to Calibre at the time of the initial investment which is disclosed before the investment is made. Calibre may be entitled to an additional fee based on the realized performance of the partnership. After you receive your initial investment plus a preferred return of 8 percent, Calibre would be entitled to receive all amounts received by the partnership up to the amount equal to 20 percent of the return that you received. After that amounts received by the partnership are split 80 percent to you and 20 percent to Calibre.
- What additional costs should I expect in connection with my account?
The partnerships have annual expenses for tax preparation, legal professional services and bank fees from the partnerships bank account. These expenses are paid by the partnership.
- Tell me how you and your firm make money in connection with my account. Do you or your firm receive any payments from anyone besides me in connection with my investments?
Calibre makes money from the fee paid at the time of initial investment and a fee based on performance of the investment. These fees are paid by the partnership. Calibre is not paid from anyone else.
- What are the most common conflicts of interest in your advisory and brokerage accounts?
Calibre representatives may also serve as Administrative Members to the partnerships. The Administrative Members manage the affairs of the partnership including the timing of sale of the investments in the partnership. You may not agree with the timing or value received for the assets at the time of sale. A majority of investors in the partnership can vote to replace Administrative Members.
- How will you choose investments for my account?
You are the only person deciding on investing in a Calibre partnership. Calibre does not make recommendations. You must consult your own finance, tax and legal advisors.
- How often will you monitor my account’s performance and offer investment advice?
The partnership sends out quarterly reports to its investors. You can inspect the records of the partnership at any time on your request.
- Do you or your firm have a disciplinary history? For what type of conduct?
There have been no disciplinary actions on Calibre or any of its representatives.
- What is your relevant experience, including your licenses, education and other qualifications? Please explain what the abbreviations in your licenses are and what they mean.
Calibre representatives have been making investments for over 15 years. Jim Tumulty and Ed Siegel have held licenses to sell securities with the S.E.C. for almost thirty years. Toby Kreidler has held his license for nine years. You can see a more complete background of each Calibre representative under the Team section of this website.
- Who is the primary contact person for my account, and is he or she a representative of an investment adviser or a broker-dealer? What can you tell me about his or her legal obligations to me? If I have concerns about how this person is treating me, who can I talk to?
Ed Siegel is the primary contact for your investment in the Calibre partnership. His is a representative of the broker-dealer. He will provide all information regarding the partnership to you. He does not have a legal obligation to provide advise on making the investment. You are solely responsible for making your decision to invest in a Calibre partnership. You should contact Jim Tumulty if you have any concerns about how you are treated by any Calibre representative.