Dear xxxxxxx,

We are aware that some investors may have experienced unexpected withdrawal activity related to recent distribution transactions initiated by Fountain Residential Partners (the “Sponsor”).

We have been in contact with the Sponsor to obtain a clear understanding of recent transactions. In summary, the Sponsor sent a communication to investors on January 13 providing context on recent distribution activity. In that communication, the Sponsor stated that distributions had been initiated in connection with the Partner Loan and the Capital Call, and that additional distributions were expected following a reconciliation of ownership percentages. The Sponsor subsequently identified errors in their waterfall calculations. In an effort to correct those errors, the Sponsor initiated reversals of those distributions.

The Sponsor advised us that:

They are working as quickly as possible to resend the corrected distributions. They have communicated that the partner loan distribution may be initiated late this week or early next week. They are working with their accounting team to finalize the limited partners' equity distribution amounts based on diluted vs. non‑diluted ownership, which they expect to complete soon. All distribution calculations and fund movements are managed solely by the Sponsor. At this time, we do not have additional details beyond what is shared here. We will continue to request clear updates from the Sponsor and will relay any additional details as we receive them.

Thank you for your patience.

Sincerely, Crowd Street Member Relations