Material Risks of Investing in BACF

An investment in Beacon Acquisition and Capital Fund LP involves a high degree of risk, including the risk that an investor may lose all or substantially all of its invested capital. The following summary highlights material risks; it is not exhaustive. Prospective investors should review the confidential Private Placement Memorandum carefully.

Illiquidity. Interests in the fund are not freely transferable and there is no public market for them. Investors should be prepared to hold their investment for the full term of the fund.

Credit and Default Risk. Borrowers in the fund's portfolio may default on their obligations. Recoveries on defaulted loans may be substantially less than the principal amount of the loan.

Leverage. The fund or its portfolio investments may employ leverage, which can amplify both gains and losses.

Interest Rate and Market Risk. Changes in prevailing interest rates, credit spreads, and broader economic conditions may adversely affect the value of the fund's investments.

Concentration. The fund may, from time to time, hold concentrated positions in particular borrowers, industries, or geographies, which may increase risk of loss.

Fees and Expenses. Management fees, performance allocations, and fund expenses will reduce returns to investors.

Past performance does not guarantee future results. Investments involve risk including possible loss of principal.