Pelorus Fund — Frequently Asked Questions

If you arrived here while searching for the Pelorus Capital Group investor portal, investor login, or account access, you are in the right place for information about the fund's current status. The Pelorus Fund has been fully gated since December 2023 — meaning investor redemptions are suspended and no distributions have been paid since April 30, 2026.

A growing coalition of Pelorus Fund limited partners is coordinating a formal management change through this site. If you are a current or former investor and want to connect with the coalition or share your investor statements, please register your support here or email pelorusinvestor@gmail.com.

Pelorus Capital Group is headquartered at 124 Tustin Avenue, Suite 200, Newport Beach, CA 92663. However, numerous investors have reported difficulty obtaining meaningful responses from management regarding the fund gate, distribution status, or fund financials.

If you are seeking updates on your investment and have been unable to get satisfactory information from Pelorus management directly, the investor coalition at this site may be able to connect you with other investors and with legal counsel coordinating the management removal effort. Register here to join.

Pelorus Capital Group has provided limited formal investor communications. This site publishes all publicly available information drawn from filed court documents, arbitration proceedings, and fund disclosures. For the most current information on the fund's status, the Q1 2026 fund report disclosed a YTD net IRR of -2.38%, total fund debt of approximately $122 million due September 2026, and a $70 million line of credit fully drawn with forbearance ending in September 2026.

All seven active legal proceedings filed against Pelorus management are available for download in the Documents section of the main page.

The Pelorus Fund suspended investor redemptions in December 2023. As of June 2026 — more than 30 months later — the gate remains in place. No credible timeline for lifting the gate or resuming distributions has been communicated to investors.

Filed court documents allege that the gate is directly connected to the fund's financial condition: approximately $52 million in investor capital was loaned to entities in which managing partners Daniel Leimel Jr. and Rob Sechrist held undisclosed personal ownership interests. Approximately $46 million of those loans has defaulted and remains unresolved on the fund's books. Total fund debt of $122 million — including a fully drawn $70 million line of credit — comes due in September 2026.

Pelorus Capital Group reduced distributions to de minimis levels throughout 2024 and 2025, and halted all distributions entirely as of April 30, 2026. The fund reported a net IRR of -16.02% for full-year 2024 and -2.38% YTD for Q1 2026.

For comparison, publicly traded cannabis lending funds such as Chicago Atlantic Real Estate Finance (REFI) paid approximately 14–17% annually throughout the same period without interruption. Pelorus investors — who cannot redeem their capital — now receive zero income with no timeline for recovery.

Based on publicly filed documents and fund disclosures, the financial risk to Pelorus Fund investors is significant. Key risk factors include: $122 million in total fund debt due September 2026 with no announced repayment plan; 12 REO assets with aggregate negative implied equity of approximately -$18.1 million; a $46 million portfolio of defaulted related-party loans still on the books; and forbearance agreements on the primary credit facility ending in September 2026.

Investors are strongly encouraged to consult with qualified legal counsel regarding their options. The coalition at this site is working with legal counsel to pursue a management change before the fund's financial position deteriorates further. Register your support to be included in that effort.

Pelorus Capital Group has operated multiple fund vehicles including Pelorus Fund REIT, LLC, and the Pelorus Growth Fund. Filed investor complaints reference assets being transferred between Pelorus-affiliated entities, including into entities controlled by Ethan Leimel (son of managing partner Daniel Leimel Jr.) through what are alleged to be shell structures. Investors in any Pelorus-affiliated fund vehicle are encouraged to review the filed documents on this site and consult legal counsel.

There is no single certified class action as of June 2026, but there are at least seven separate active legal proceedings against Pelorus Capital Group and its managers, including investor-filed complaints, JAMS and AAA arbitration demands, and state court filings in California and Pennsylvania. The investor coalition at this site is coordinating additional legal action through Baker Hostetler LLP and Venable LLP.

View the full litigation detail page →

Filed arbitration proceedings allege that Daniel Leimel Jr. and Rob Sechrist directed approximately $52 million of Pelorus Fund investor capital into undisclosed related-party loans — investments in which Leimel and Sechrist held personal ownership interests. These transactions were never disclosed to limited partners, never vetted through the investment committee, and were concealed from auditors. The arbitration demand is available for download in the Documents section.

A separate AAA arbitration resulted in an award of $347,414.84 against Pelorus Capital Group, plus an order to produce books and records. Pelorus has resisted production of those documents, which is itself the subject of Orange County Superior Court proceedings filed April 10, 2026.

CohnReznick LLP, which served as Pelorus Capital Group's independent auditor, raised concerns about the fund's operations and financial reporting. Their departure was referenced in the managing partner's resignation letter of May 29, 2024, which noted that SEC inquiries were ongoing at the time of writing. The resignation letter is available in full on the main page and for download in the Documents section.

Daniel Leimel Jr. (also referred to as Dan Leimel) and James Robert Sechrist (Rob Sechrist) are the remaining managing partners of Pelorus Capital Group LLC. Filed court documents and arbitration proceedings allege that Leimel and Sechrist directed approximately $52 million of investor capital into undisclosed related-party investments in which they held personal ownership stakes, failed to disclose those investments to limited partners or auditors, and terminated independent investigative counsel before their findings could be acted upon.

The investor coalition at this site is seeking their formal removal as fund managers under the terms of the Pelorus Capital Group Operating Agreement.

Under the Pelorus Capital Group LLC Operating Agreement, limited partners holding a majority interest can vote to remove fund management. The coalition is assembling the required investor signatures to trigger a formal removal process. Once enough investors have registered, legal counsel will coordinate the formal vote.

Registering your support does not obligate you to any legal action. It records your identity as an investor and your support for a governance change. Register here →

This site is the central coordination point for the investor coalition. Register your support using the form on the main page, or email pelorusinvestor@gmail.com directly. Your information will be shared only with the legal counsel coordinating the management removal effort and kept confidential.

The investor coalition has identified two credible replacement manager candidates with relevant institutional experience: an institutional cannabis credit manager with approximately $768 million deployed and prior REIT replacement experience; and a national restructuring and fiduciary specialist affiliated with DSI Consulting. Details on both candidates are available on the main page. Neither candidate is affiliated with Leimel, Sechrist, or any of the entities named in the active litigation.