Kazi Capital Group Investor FAQ

Question 1

Who qualifies as an accredited investor?

Accepted Answer

Under SEC Regulation D, an accredited investor is an individual with a net worth exceeding $1 million (excluding primary residence) or annual income exceeding $200,000 ($300,000 for joint filers) in each of the past two consecutive years with a reasonable expectation of the same income level in the current year. Certain institutional entities and holders of professional credentials such as CFA, Series 65, or Series 82 licenses may also qualify. All investors must complete our accreditation verification process before accessing any bond offering.

Question 2

What is the minimum investment to get started?

Accepted Answer

The entry point depends on the bond series you choose. Our Series A Mineral Rights Bond starts at $10,000 and is designed for accredited investors entering private mineral markets. Series B requires a minimum of $50,000 and offers a higher yield of 13% APY. Our institutional Series C requires a $354,000 minimum and delivers 15% APY with dedicated asset management. All three series are backed by the same certified Permian Basin mineral acreage.

Question 3

How do I open an account and begin investing?

Accepted Answer

The process starts with a brief inquiry through our contact form at kazicapitalgroup.com/contact or a direct call to investor relations at +1 (800) 529-4247. After an initial consultation, you complete our accreditation verification and receive onboarding documents electronically. Our team guides you through every step — typically completing onboarding within 3 to 5 business days. Once approved, funds are wired and your position is confirmed with a formal bond agreement.

Question 4

How long does the investor onboarding process take?

Accepted Answer

Standard onboarding takes 3 to 5 business days from your first contact. This includes accreditation verification, document signing, and funding confirmation. Investors using complex entity structures such as trusts, LLCs, or self-directed IRAs may require an additional 1 to 2 business days depending on documentation. Our investor relations team works proactively to keep the process smooth and fast.

Question 5

Can I invest through an LLC, trust, or self-directed IRA?

Accepted Answer

Yes. Investments can be made through accredited entities including LLCs, family trusts, limited partnerships, and self-directed IRAs. The entity itself must meet accreditation standards or have a qualifying signatory. We work closely with your IRA custodian or legal counsel to ensure all documentation is correctly structured. Please inform us during onboarding of your preferred investment vehicle so we can prepare the appropriate agreements.

Question 6

Is Kazi Capital Group available to international investors?

Accepted Answer

At this time, Kazi Capital Group's bond offerings are available to accredited investors who are U.S. persons — U.S. citizens, resident aliens, or U.S.-incorporated entities — under Regulation D. We are exploring pathways for certain international accredited investors in future offerings. If you are based outside the United States, contact our investor relations team to discuss your specific situation and jurisdiction.

Question 7

What are mineral rights bonds?

Accepted Answer

Mineral rights bonds are private fixed-income instruments secured by ownership interests in oil and gas mineral acreage. When you invest in a Kazi Capital Group bond, your capital is backed by producing mineral rights — real, titled property generating ongoing royalty income from active well operators. Unlike stocks or mutual funds, your return is tied to the physical output of wells in the ground, not to market sentiment. Each bond has a defined term, fixed yield, and distribution schedule established at the time of investment.

Question 8

What is the difference between Series A, B, and C?

Accepted Answer

The three series represent different investment tiers backed by the same asset class — West Texas Permian Basin mineral acreage — but differ in minimum investment, yield, term, and additional services. Series A ($10,000 minimum, 10% APY) provides monthly income with full principal return at maturity. Series B ($50,000 minimum, 13% APY) adds a quarterly distribution option and a 3-year term lock-up. Series C ($354,000 minimum, 15% APY) is our institutional tranche with dedicated asset management, direct production reporting access, and annual distributions.

Question 9

What is the Permian Basin and why does it matter for my investment?

Accepted Answer

The Permian Basin in West Texas and southeastern New Mexico is the most productive oil-producing region in the United States, accounting for over 6 million barrels per day — more than any other basin in the world. It holds decades of proven production history, some of the lowest breakeven extraction costs globally (often under $30 per barrel), and the largest concentration of proven oil and gas reserves in the country. These characteristics make Permian Basin mineral rights among the most stable and valuable collateral available for fixed-income instruments.

Question 10

Are mineral rights bonds publicly traded?

Accepted Answer

No. Our bond offerings are private securities issued under SEC Regulation D and are not listed on any public exchange. This means they do not carry the daily price volatility of publicly traded instruments, but they also have limited liquidity during the investment term. We structure each bond with a defined maturity date, and our offerings are limited to accredited investors who understand and accept the nature of private, illiquid investments.

Question 11

How are the underlying mineral assets valued?

Accepted Answer

All mineral acreage is independently valued by certified petroleum engineers and mineral appraisers before any bond is issued. Valuations incorporate production histories from active wells, reservoir reserve estimates, current and projected commodity pricing, discount rate assumptions, and comparable market transactions. We use conservative assumptions and our bonds are typically issued at 50 to 60 percent loan-to-value relative to the certified mineral appraisal — providing a meaningful buffer between the bond value and the underlying asset value.

Question 12

Can I invest in multiple bond series at the same time?

Accepted Answer

Yes. Accredited investors can hold positions in multiple series simultaneously, subject to available allocations. Many investors start with Series A to become familiar with the asset class, then add Series B or C positions as their confidence grows. Each series operates independently with its own term, yield, and distribution schedule. Contact your relationship manager to discuss how to structure a diversified position across series.

Question 13

What annual returns can I expect?

Accepted Answer

Returns are fixed at the time of investment and vary by series: Series A offers 10% APY, Series B offers 13% APY, and Series C offers 15% APY. These fixed rates do not fluctuate with market conditions during your bond term. Actual distributions depend on your elected payment mode — monthly income distributions or compounding reinvestment — and the distribution schedule established in your bond agreement.

Question 14

How and when are distributions paid?

Accepted Answer

Monthly income distributions are processed on the 15th of each calendar month and deposited directly to your designated bank account via ACH or wire transfer. Series B also supports quarterly distributions for investors who prefer less frequent but larger payments. Series C investors receive annual distributions. If you elect the compounding option, returns are reinvested into your principal balance rather than being paid out as cash.

Question 15

Can I reinvest distributions instead of receiving cash?

Accepted Answer

Yes. All investors can elect the compounding option at the time of investment, where monthly returns are reinvested into your principal balance rather than paid out as cash. This significantly accelerates growth. A $100,000 investment at 15% APY compounded annually grows to approximately $201,136 over five years, compared to $175,000 with cash distributions. You can model projected compounding figures using our Returns calculator on the homepage.

Question 16

What happens when my bond reaches maturity?

Accepted Answer

At maturity, your full principal investment is returned along with any final distribution for the period. You will receive 60 days advance notice before your maturity date outlining your options: full redemption (principal plus final payment returned to your bank account), renewal into a new bond of the same or different series, or partial reinvestment. Our investor relations team will contact you proactively to ensure a smooth transition. There are no fees associated with maturity processing.

Question 17

How is the annual percentage yield (APY) calculated?

Accepted Answer

The stated APY reflects the effective annual return. For cash-distribution mode, the APY matches the nominal annual rate because returns are not compounded. For the reinvestment (compounding) mode, the effective return is slightly higher due to the monthly compounding of reinvested interest. For example, a 15% nominal annual rate compounded monthly produces an effective APY of approximately 16.08%. All yield figures and calculation methodologies are clearly disclosed in your bond agreement and investor portal.

Question 18

What assets back my investment?

Accepted Answer

Each Kazi Capital Group bond is secured by a perfected lien on certified mineral rights in actively producing wells in the Permian Basin, West Texas. These mineral rights generate royalty income every month as oil and gas operators extract hydrocarbons from the acreage. Mineral rights are real property — titled, county-recorded assets — not financial derivatives or unsecured paper obligations. Your investment is backed by a hard asset with a verifiable production history and an independently certified reserve value.

Question 19

What happens if oil or gas prices fall significantly?

Accepted Answer

Our bonds are structured with conservative loan-to-value ratios of 50 to 60 percent of certified mineral value. This means that even if commodity prices declined and reduced mineral valuations by 30 to 40 percent, the value of the underlying collateral would still exceed the outstanding bond obligations. Additionally, Kazi Capital maintains a diversified portfolio across multiple producing wells and operators, reducing exposure to any single well's production variability. We also monitor commodity price trends and may hedge production exposure on appropriate offerings.

Question 20

Is my principal protected?

Accepted Answer

Our bonds are secured by mineral rights collateral independently appraised well above the bond face value. While no private investment can guarantee zero risk of loss, the conservative LTV structure and hard asset collateral provide significant principal protection relative to unsecured debt instruments. Unlike equity investments, your bond is not subject to stock market volatility. The primary risks are commodity price movements and production shortfalls, both of which are actively mitigated through our diversification and conservative structuring practices.

Question 21

What is the early redemption or exit policy?

Accepted Answer

Our bonds are designed as term investments and are not intended for early redemption. However, we recognize that life circumstances can change. We offer early exit provisions for qualifying events — such as death, permanent disability, or court-ordered financial restructuring — on a case-by-case basis, with possible adjustment to accrued interest. We strongly recommend investing only capital you do not need access to for the full bond term. Please review your specific bond agreement for early redemption terms before investing.

Question 22

How does diversification across multiple wells reduce risk?

Accepted Answer

Rather than tying your investment to a single well or operator, Kazi Capital Group pools collateral across a portfolio of producing wells in different sub-basins within the Permian. If one well's production declines due to mechanical issues or natural depletion, other wells in the portfolio continue generating royalty income. We also work with multiple independent operators, reducing counterparty concentration risk. This multi-well, multi-operator structure is the same risk management approach used in institutional real assets portfolios.

Question 23

Are Kazi Capital Group offerings SEC compliant?

Accepted Answer

Yes. All bond offerings are structured under SEC Regulation D, Rule 506(b) or 506(c), which exempts qualifying private placements from full public registration while maintaining investor protection requirements. We file Form D notices with the SEC for each offering. Our legal counsel ensures all offering documents, subscription agreements, and investor communications comply with federal securities laws. Investments are exclusively available to verified accredited investors.

Question 24

How do I verify my accredited investor status?

Accepted Answer

We accept several forms of accreditation verification: a letter from a licensed CPA, attorney, registered investment advisor, or broker-dealer confirming your accredited status; recent tax returns or W-2s demonstrating qualifying income of $200,000 individually or $300,000 jointly for two consecutive years; or recent financial statements demonstrating net worth exceeding $1 million excluding primary residence. Our onboarding team will guide you through this process. Verification typically takes 1 to 2 business days.

Question 25

What tax documents will I receive?

Accepted Answer

Investors receive a Form 1099-INT or Form 1099-DIV by January 31st each year for the prior tax year. Investors participating through certain pass-through entities such as LLCs or partnerships may receive a Schedule K-1 instead. Exact tax document type depends on how your investment is structured. We strongly recommend consulting with a CPA or tax advisor familiar with mineral rights investments before filing, as the tax treatment involves factors specific to oil and gas royalty income.

Question 26

How are mineral rights bond returns taxed?

Accepted Answer

For most individual investors, income from mineral rights bonds is treated as ordinary income and reported on your federal tax return. However, mineral royalty income may qualify for a depletion allowance — typically 15 percent of gross royalty income — which can partially offset your taxable income. This depletion benefit is not available with traditional bond interest income and represents a meaningful tax advantage for mineral rights investors. The specific tax treatment depends on your investment structure and personal circumstances. Consult a qualified tax professional familiar with oil and gas royalty income.

Question 27

Are there any state-specific investment restrictions?

Accepted Answer

Regulation D offerings are exempt from most state securities registration requirements through federal preemption, though some states require specific notice filings — commonly called blue sky filings — which we comply with. A small number of states may have additional requirements or restrictions. Our legal team ensures compliance in all states where we accept investors. During onboarding, we will confirm your state of residence and advise of any applicable state-level requirements before your investment is finalized.

Question 28

What is the investor portal and how do I access it?

Accepted Answer

The investor portal is a secure, dedicated online platform where you can monitor your investment in real time. Once your investment is active, you receive login credentials via a secure email. The portal displays your current principal balance, accrued interest, complete distribution history, production data for underlying wells, monthly account statements, and all tax documents. It is accessible 24 hours a day, 7 days a week from any device and gives you full transparency into every aspect of your investment.

Question 29

How often are production and financial reports updated?

Accepted Answer

Production reports from the underlying Permian Basin wells are updated monthly following the operator reporting cycle, typically within 30 days of each production month. Monthly account statements are generated within 5 business days of each month's end and are available immediately in your investor portal. Annual performance reports summarizing full-year production, income, and asset valuation are delivered in January for the prior year. Real-time account balance data is refreshed daily.

Question 30

Do I get a dedicated relationship manager?

Accepted Answer

Yes. Every investor at Kazi Capital Group is assigned a dedicated relationship manager from their first investment. Your manager is a real person — not a chatbot or call center representative — who understands your specific investment position and is available by phone or email throughout your investment term. Relationship managers are available Monday through Friday, 8 AM to 6 PM Central Time, and will proactively reach out at key milestones such as distribution dates, annual reviews, and maturity notices.

Question 31

How do I contact the investor relations team?

Accepted Answer

You can reach our investor relations team by email at invest@kazicapitalgroup.com or by phone at +1 (800) 529-4247, Monday through Friday from 8 AM to 6 PM Central Time. For new investors, use our contact form at kazicapitalgroup.com/contact to begin the conversation — we typically respond within one business hour during business hours. For matters relating to an existing investment, your dedicated relationship manager's direct contact information is available inside your investor portal.

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