Legal

Risk Disclosure

Baraka Capital LLC · Effective Date: June 29, 2026 · DRAFT — ATTORNEY REVIEW REQUIRED

ATTORNEY REVIEW REQUIRED: This is a draft template for review purposes only. It does not constitute legal advice and must be reviewed and approved by a licensed attorney before publication. Baraka Capital LLC, its members, and its managers make no representations as to the legal sufficiency of this document.
ImportantPlease read this Risk Disclosure carefully before expressing interest in or committing capital to any investment opportunity offered by or through Baraka Capital LLC. Investing involves significant risk, including the possible loss of your entire investment.

1. General Investment Risk

All investments carry risk. Investments offered through or managed by Baraka Capital LLC ("Baraka Capital," "we," "us," or "our") are speculative in nature and are not suitable for all investors. You should only invest capital that you can afford to lose entirely.

Baraka Capital does not guarantee any return of capital, income distributions, or profit of any kind. Any projected or target returns communicated on our website or in any other materials are estimates only and are not promises or guarantees of future performance.

2. Illiquidity Risk

Investments offered by Baraka Capital are illiquid. There is no public market for any interest in the Baraka Income Fund, the Baraka Growth Equity Fund, or any other investment vehicle managed by Baraka Capital. You may not be able to sell or transfer your interest, and you should expect your capital to be locked up for the full duration of the investment term.

Baraka Capital does not currently offer a secondary market or early redemption mechanism. You should not invest any capital that you may need access to in the short or medium term.

3. Loss of Capital Risk

You may lose part or all of the capital you invest. Factors that could result in partial or total loss include, but are not limited to: poor business performance, market downturns, unexpected expenses, regulatory changes, sponsor failure, or force majeure events. Baraka Capital cannot protect investors against all such risks.

4. Concentration Risk

At any given time, a Baraka Capital fund may be concentrated in a limited number of investments, asset classes, or geographic areas. Concentration in a small number of holdings increases the potential impact of any single investment's underperformance on the overall fund.

5. Sponsor and Operator Risk

Baraka Capital relies on third-party sponsors, operators, and deal originators to manage underlying investments. The success of each investment is substantially dependent on the skill, experience, and integrity of these parties. Baraka Capital conducts diligence on all sponsors prior to deployment of capital; however, this diligence cannot eliminate the risk of sponsor failure, misconduct, or underperformance.

6. Real Estate Risk

Investments in real estate are subject to risks specific to that asset class, including: changes in property values, vacancy rates, rental income fluctuations, property damage, zoning and regulatory changes, environmental liabilities, and changes in local or national real estate markets. Real estate development investments carry additional risks including construction delays, cost overruns, permitting challenges, and failure to achieve projected sale or rental prices.

7. Private Business and Startup Risk

Investments in private businesses, small business acquisitions, and early-stage companies carry heightened risk compared to publicly traded securities. Private companies may have limited operating histories, limited access to capital, and may be subject to competitive pressures that threaten their viability. Startup and expansion-stage investments in particular involve a high probability of failure. You should assume that any investment in a startup may result in total loss.

8. Asset-Backed Investment Risk

Investments in asset-backed vehicles — including transportation assets such as trucking and refrigerated (reefer) fleets — are subject to risks including asset depreciation, mechanical failure, regulatory compliance costs, changes in fuel or operating costs, and dependence on contracted revenue that may not be renewed or may be subject to dispute.

9. Market and Economic Risk

The performance of Baraka Capital's investments may be adversely affected by macroeconomic conditions including inflation, interest rate changes, recession, geopolitical events, and shifts in consumer demand. These risks are outside the control of Baraka Capital and cannot be hedged or eliminated.

10. Regulatory and Legal Risk

The regulatory environment for private investment funds is subject to change. Changes in federal or state securities laws, tax law, or other regulations could adversely affect the structure, tax treatment, or permissibility of investments offered by Baraka Capital. Additionally, disputes, litigation, or regulatory investigations involving Baraka Capital or any of its portfolio companies could result in financial loss or delays.

11. Halal Compliance Risk

While Baraka Capital endeavors to structure all investments in accordance with Islamic finance principles, there is no absolute guarantee that any investment will be deemed halal by every scholar or jurisdiction. Interpretations of Islamic finance principles vary, and future scholarly opinions or regulatory guidance may affect the characterization of any given investment structure. Investors who require strict halal compliance are encouraged to conduct their own independent review.

12. No Investment Advice

Nothing communicated by Baraka Capital — whether on this website, in marketing materials, in meetings, or in any other format — constitutes investment advice. Baraka Capital is not a registered investment adviser. You should consult with a qualified financial adviser, attorney, and tax professional before making any investment decision.

13. Forward-Looking Statements

Any statements regarding expected returns, fund performance, deployment timelines, or business outcomes are forward-looking statements based on assumptions and estimates that may prove inaccurate. Actual results could differ materially from any projections. Forward-looking statements are not guarantees and should not be relied upon as such.

14. Accredited Investor Requirement

Investment opportunities offered by Baraka Capital may be available only to accredited investors as defined under Rule 501 of Regulation D of the Securities Act of 1933, as amended. By expressing interest in any investment, you represent and warrant that you meet all applicable eligibility requirements. Misrepresenting your eligibility status may expose you to legal liability.

15. Acknowledgment

By using this website or expressing interest in any investment opportunity offered by Baraka Capital LLC, you acknowledge that you have read, understood, and accepted the risks described in this Risk Disclosure. You further acknowledge that no representation has been made to you that contradicts any of the risks described herein.

Contact

Baraka Capital LLC Email: admin@barakacapital.co