SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE TO
TENDER OFFER STATEMENT UNDER SECTION 14(D)(1) OR 13(E)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC
(Name of Issuer)
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC
(Name of Person(s) Filing Statement)
LIMITED LIABILITY COMPANY INTERESTS
(Title of Class of Securities)
N/A
(CUSIP Number of Class of Securities)
STEVEN L. SUSS
Excelsior Directional Hedge Fund of Funds (TI), LLC
225 High Ridge Road
Stamford, CT 06905
(203) 975-4063
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications on Behalf of the Person(s) Filing Statement)
With a copy to:
Kenneth S. Gerstein, Esq.
Schulte Roth & Zabel LLP
919 Third Avenue
New York, New York 10022
(212) 756-2533
October 2, 2009
(Date Tender Offer First Published,
Sent or Given to Security Holders)
CALCULATION OF FILING FEE
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Transaction Valuation: $45,000,000.00 (a) Amount of Filing Fee: $2,511.00
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(a) Calculated as the aggregate maximum repurchase price for Interests.
(b) Calculated at $55.80 per million of Transaction Valuation.
/ / Check the box if any part of the fee is offset as provided by Rule
0-11(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
Amount Previously Paid:
Form or Registration No.:
Filing Party:
Date Filed:
/ / Check the box if the filing relates solely to preliminary
communications made before the commencement of a tender offer.
Check the appropriate boxes below to designate any transactions to which the
statement relates:
/ / third-party tender offer subject to Rule 14d-1.
/x/ issuer tender offer subject to Rule 13e-4.
/ / going-private transaction subject to Rule 13e-3.
/ / amendment to Schedule 13D under Rule 13d-2.
Check the following box if the filing is a final amendment reporting the results
of the tender offer: / /
ITEM 1. SUMMARY TERM SHEET.
As stated in the offering documents of Excelsior Directional Hedge
Fund of Funds (TI), LLC (the "Fund"), the Fund is offering to repurchase limited
liability company interests in the Fund ("Interest" or "Interests" as the
context requires) from members of the Fund ("Members") at their net asset value
(that is, the value of the Fund's assets minus its liabilities, multiplied by
the proportionate interest in the Fund a Member desires to tender). The offer to
repurchase Interests (the "Offer") will remain open until 12:00 midnight,
Eastern Time, on October 30, 2009, unless the Offer is extended. The net asset
value of the Interests will be calculated for this purpose on December 31, 2009
or, if the Offer is extended, on the last business day of the month in which the
Offer expires (the "Valuation Date"). The Fund reserves the right to adjust the
Valuation Date to correspond with any extension of the Offer. The Fund will
review the net asset value calculation of Interests as of December 31, 2009,
during the Fund's audit for its fiscal year ending March 31, 2010, which the
Fund expects will be completed by the end of May 2010. This
December 31, 2009 net asset value, as reviewed, will be used to determine the
final amount paid for tendered Interests.
Members may tender their entire Interest, a portion of their Interest
defined as a specific dollar value or the portion of their Interest above the
required minimum capital account balance. If a Member tenders its entire
Interest (or a portion of its Interest) and the Fund accepts that Interest for
repurchase, the Fund will give the Member a non-interest bearing,
non-transferable promissory note (the "Note") entitling the Member to receive an
amount equal to the net asset value of the Interest tendered (valued in
accordance with the Fund's Limited Liability Company Agreement dated March 30,
2007 (the "LLC Agreement")) determined as of December 31, 2009 (or if the Offer
is extended, the net asset value determined on the Valuation Date). The Note
will be held in a special custody account with PFPC Trust Company ("PFPC").
If a Member tenders its entire Interest, the Note will entitle the
Member to receive an initial payment in cash and/or marketable securities
(valued in accordance with the LLC Agreement) equal to at least 95% of the
unaudited net asset value of the Interest tendered by the Member that is
accepted for repurchase by the Fund (the "Initial Payment"). The Initial Payment
will be paid to the Member's account with Bank of America, N.A., or an affiliate
bank (collectively, "Bank of America") or wired to the Member's bank account if
the Member does not have a Bank of America account, within 30 calendar days
after the Valuation Date or, if the Fund has requested withdrawals of its
capital from any investment funds in order to finance the repurchase of
Interests, within ten business days after the Fund has received at least 95% of
the aggregate amount withdrawn by the Fund from such investment funds.
The Note will also entitle the Member to receive a contingent payment
(the "Contingent Payment") equal to the excess, if any, of (a) the net asset
value of the Interest tendered by the Member and accepted by the Fund for
repurchase, determined as of the Valuation Date, as it may be adjusted based on
the annual audit of the Fund's March 31, 2010 financial statements, over (b) the
Initial Payment. The Fund will deposit the aggregate amount of the Contingent
Payments in a separate, interest bearing account and will pay any interest
actually earned thereon PRO RATA to the Members whose Interests have been
repurchased. The Contingent Payment (plus any interest earned) will be paid
within ten calendar days after the completion of the Fund's annual audit. The
Contingent Payment will also be deposited into the tendering Member's account at
Bank of America or wired to the Member's bank account if the Member does not
have a Bank of America account.
A Member that tenders for repurchase only a portion of such Member's
Interest will receive a Note that will entitle the Member to a payment in cash
and/or marketable securities (valued in accordance with the LLC Agreement) equal
to 100% of the net asset value of the portion of the Interest tendered by the
Member that is accepted for repurchase by the Fund. Payment pursuant to the Note
will be made to the Member's account at Bank of America or wired to the Member's
bank account if the Member does not have a Bank of America account, within 30
calendar days after the Valuation Date or, if the Fund has requested withdrawals
of its capital from any investment funds in order to finance the repurchase of
Interests, within ten business days after the Fund has received at least 95% of
the aggregate amount withdrawn by the Fund from such investment funds.
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A Member that tenders for repurchase only a portion of such Member's
Interest must tender a minimum of $25,000 and will be required to maintain a
capital account balance equal to $50,000 or more.
The Fund reserves the right to repurchase less than the amount
tendered by a Member if the repurchase would cause the Member's capital account
in the Fund to have a value less than the required minimum balance or if the
total amount tendered by Members is more than $45 million. If the Fund accepts
the tender of the Member's entire Interest or a portion of such Member's
Interest for repurchase, the Fund will make payment for Interests it repurchases
from one or more of the following sources: cash on hand; withdrawals of capital
from investment funds in which the Fund has invested; proceeds from the sale of
securities and portfolio assets held by the Fund; and/or borrowings.
Following this summary is a formal notice of the Fund's offer to
repurchase the Interests. The Offer remains open to Members until 12:00
midnight, Eastern Time, on October 30, 2009, the expected expiration date of the
Offer. Until that time, Members have the right to change their minds and
withdraw the tenders of their Interests. Members will also have the right to
withdraw tenders of their Interests at any time after December 1, 2009, 40
business days from the commencement of the Offer, assuming their Interest has
not been accepted for repurchase by the Fund on or before that date.
If a Member would like the Fund to repurchase its Interest or a
portion of its Interest, it should complete, sign and MAIL (via certified mail
return receipt requested) or otherwise deliver a Letter of Transmittal, attached
to this document as Exhibit C, to U.S. Trust Hedge Fund Management, Inc., the
investment adviser of Excelsior Directional Hedge Fund of Funds Master Fund (the
"Adviser"), 225 High Ridge Road, Stamford, CT 06905, attention Client Service.
PLEASE NOTE THAT LETTERS OF TRANSMITTAL ARE NO LONGER BEING ACCEPTED BY FAX
TRANSMISSION, HOWEVER, THEY MAY BE SENT VIA EMAIL TO
AICLIENTSERVICE@BANKOFAMERICA.COM. PLEASE INCLUDE THE WORDS "EXCELSIOR
DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC TENDER DOCUMENTS" IN THE SUBJECT LINE.
Of course, the value of Interests will change between July 31, 2009 (the last
time prior to the date of the Offer as of which net asset value has been
calculated) and December 31, 2009, the date as of which the value of Interests
will be determined for purposes of calculating the repurchase price for
Interests. Members may obtain the estimated net asset value of their Interests,
which the Fund calculates monthly based on the information the Fund receives
from the managers of the investment funds in which it invests, by contacting the
Adviser at (866) 921-7951 or at the address listed above, Monday through Friday,
except holidays, during normal business hours of 9:00 a.m. to 5:00 p.m. (Eastern
Time).
Please note that, just as each Member has the right to withdraw the
tender of an Interest, the Fund has the right to cancel, amend or postpone this
Offer at any time before 12:00 midnight, Eastern Time, on October 30, 2009. Also
realize that although the Offer expires on October 30, 2009, a Member that
tenders all or a portion of its Interest will remain a Member with respect to
the Interest tendered and accepted for repurchase by the Fund through December
31, 2009, when the net asset value of the Member's Interest tendered to the Fund
for repurchase is calculated.
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ITEM 2. ISSUER INFORMATION.
(a) The name of the issuer is Excelsior Directional Hedge Fund of
Funds (TI), LLC. The Fund is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as a closed-end, non-diversified, management
investment company. It is organized as a Delaware limited liability company. The
principal executive office of the Fund is located at 225 High Ridge Road,
Stamford, CT 06905 and the telephone number is (203) 352-4497.
(b) The title of the securities that are the subject of the Offer is
limited liability company interests or portions thereof in the Fund. (As used
herein, the term "Interest" or "Interests," as the context requires, refers to
the limited liability company interests in the Fund and portions thereof that
constitute the class of security that is the subject of this Offer or the
limited liability company interests in the Fund or portions thereof that are
tendered by Members pursuant to the Offer.) The underlying capital of the Fund,
limited liability company interests of Excelsior Directional Hedge Fund of Funds
Master Fund, LLC (the "Master Fund"), was last valued, as of close of business
on July 31, 2009, at approximately $296,369,314. Subject to the conditions set
forth in the Offer, the Fund will repurchase up to $45 million of Interests that
are tendered and not withdrawn as described in ITEM 1, subject to any extension
of the Offer.
(c) Interests are not traded in any market, and any transfer thereof
is strictly limited by the terms of the LLC Agreement.
ITEM 3. IDENTITY AND BACKGROUND OF FILING PERSON.
(a) The name of the filing person is Excelsior Directional Hedge Fund
of Funds (TI), LLC. The Fund's principal executive office is located at 225 High
Ridge Road, Stamford, CT 06905 and the telephone number is (203) 352-4497. U.S.
Trust Hedge Fund Management, Inc. provides various management and administrative
services to the Fund pursuant to a management agreement with the Fund. The
principal executive office of U.S. Trust Hedge Fund Management, Inc. is located
at 225 High Ridge Road, Stamford, CT 06905, and its telephone number is (203)
352-4497. The Fund's managers ("Manager(s)" or "Board of Managers" as the
context requires) are Alan Brott, John C. Hover III, Victor F. Imbimbo, Jr.,
Stephen V. Murphy and Thomas G. Yellin. The Managers' address is c/o Excelsior
Directional Hedge Fund of Funds (TI), LLC, 225 High Ridge Road, Stamford, CT
06905.
ITEM 4. TERMS OF THIS TENDER OFFER.
(a) (1) (i) Subject to the conditions set forth in the Offer, the Fund
will repurchase up to $45 million of Interests that are tendered by Members and
not withdrawn as described in ITEM 1. The initial expiration date of the Offer
is 12:00 midnight, Eastern Time, on October 30, 2009, (such time and date, the
"Initial Expiration Date"), subject to any extension of the Offer. The later of
the Initial Expiration Date or the latest time and date to which the Offer is
extended is called the "Expiration Date."
(ii) The repurchase price of Interests tendered to the Fund
for repurchase will be their net asset value, determined as of the Valuation
Date or, if the Offer is extended, on the last business day of the month in
which the Offer expires.
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Members may tender their entire Interest, a portion of their
Interest defined as a specific dollar value or the portion of their Interest
above the required minimum capital account balance. Each Member that tenders its
entire Interest or a portion thereof that is accepted for repurchase will be
given a Note within ten calendar days of the acceptance of the Member's Interest
for repurchase. The Note will be held for the Members in a special custody
account with PFPC. The Note will entitle the Member to be paid an amount equal
to the value, determined as of the Valuation Date, of the Interest or portion
thereof being repurchased (subject to adjustment upon completion of the next
annual audit of the Fund's financial statements). This amount will be the value
of the Member's capital account (or the portion thereof being repurchased)
determined as of the Valuation Date and will be based on the net asset value of
the Fund's assets determined as of that date, after giving effect to all
allocations to be made as of that date.
If a Member tenders its entire Interest, the Note will
entitle the Member to receive an Initial Payment. Payment of this amount will be
made within 30 calendar days after the Valuation Date or, if the Fund has
requested withdrawals of its capital from any investment funds in order to
finance the repurchase of Interests, within ten business days after the Fund has
received at least 95% of the aggregate amount withdrawn by the Fund from such
investment funds.
The Note will also entitle a Member to receive a Contingent
Payment equal to the excess, if any, of (a) the net asset value of the Interest
tendered by the Member and accepted by the Fund for repurchase as of the
Valuation Date, as it may be adjusted based on the annual audit of the Fund's
March 31, 2010, financial statements, over (b) the Initial Payment. The Fund
will deposit the aggregate amount of the Contingent Payments in a separate,
interest bearing account and will pay any interest actually earned thereon PRO
RATA to the Members whose Interests have been repurchased. The Contingent
Payment (plus any interest earned) will be payable within ten calendar days
after the completion of the Fund's next annual audit. It is anticipated that the
annual audit of the Fund's financial statements will be completed within 60 days
after March 31, 2010, the fiscal year end of the Fund.
A Member that tenders for repurchase only a portion of such
Member's Interest will receive a Note that will entitle the Member to a payment
in cash and/or marketable securities (valued in accordance with the LLC
Agreement) equal to 100% of the net asset value of the portion of the Interest
tendered by the Member that is accepted for repurchase by the Fund. Payment
pursuant to the Note will be made to the Member's account at Bank of America or
wired to the Member's bank account if the Member does not have a Bank of America
account, within 30 calendar days after the Valuation Date or, if the Fund has
requested withdrawals of its capital from any investment funds in order to
finance the repurchase of Interests, within ten business days after the Fund has
received at least 95% of the aggregate amount withdrawn by the Fund from such
investment funds.
Although the Fund has retained the option to pay all or a
portion of the repurchase price for Interests by distributing marketable
securities, the repurchase price will be paid entirely in cash except in the
unlikely event that the Board of Managers determines that the distribution of
securities is necessary to avoid or mitigate any adverse effect of the Offer on
the remaining Members. In such event, the Fund would make such payment on a pro
rata basis so that each Member would receive the same type of consideration.
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A Member that tenders only a portion of such Member's
Interest for repurchase must tender a minimum of $25,000 and will be required to
maintain a capital account balance equal to $50,000 or more.
A copy of: (a) the Cover Letter to the Offer and Letter of
Transmittal; (b) the Offer; (c) a form of Letter of Transmittal; (d) a form of
Notice of Withdrawal of Tender; and (e) forms of Letters to Members from the
Fund that will be sent in connection with the Fund's acceptance of tenders of
Interest for repurchase are attached hereto as Exhibits A, B, C, D and E,
respectively.
(iii) The scheduled expiration date of the Offer is 12:00
midnight, Eastern Time, on October 30, 2009.
(iv) Not applicable.
(v) The Fund reserves the right, at any time and from time
to time, to extend the period of time during which the Offer is pending by
notifying Members of such extension. If the Fund elects to extend the tender
period, for the purpose of determining the repurchase price for tendered
Interests, the estimated net asset value of such Interests will be determined at
the close of business on the last business day of the month after the month in
which the Offer actually expires. During any such extension, all Interests
previously tendered and not withdrawn will remain subject to the Offer. The Fund
also reserves the right, at any time and from time to time, up to and including
the Expiration Date, to: (a) cancel the Offer in the circumstances set forth in
Section 7 of the Offer and in the event of such cancellation, not to repurchase
or pay for any Interests tendered pursuant to the Offer; (b) amend the Offer; or
(c) postpone the acceptance of Interests for repurchase. If the Fund determines
to amend the Offer or to postpone the acceptance of Interests tendered, it will,
to the extent necessary, extend the period of time during which the Offer is
open as provided above and will promptly notify Members.
(vi) A tender of an Interest may be withdrawn at any time
before 12:00 midnight, Eastern Time, on October 30, 2009 and, if the Fund has
not accepted such Interest for repurchase, at any time after December 1, 2009,
40 business days from the commencement of the Offer.
(vii) Members wishing to tender an Interest pursuant to the
Offer should MAIL a completed and executed Letter of Transmittal to the Adviser,
to the attention of Client Service, at the address set forth on page 2 of the
Offer. The completed and executed Letter of Transmittal must be received by the
Adviser BY MAIL no later than the Expiration Date. The Fund recommends that all
documents be submitted to the Adviser by certified mail, return receipt
requested. PLEASE NOTE THAT LETTERS OF TRANSMITTAL ARE NO LONGER BEING ACCEPTED
BY FAX TRANSMISSION, HOWEVER, THEY MAY BE SENT VIA EMAIL TO
AICLIENTSERVICE@BANKOFAMERICA.COM. PLEASE INCLUDE THE WORDS "EXCELSIOR
DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC TENDER DOCUMENTS" IN THE SUBJECT LINE.
Any Member tendering an Interest pursuant to the Offer may
withdraw its tender as described above in ITEM 4(vi). To be effective, any
notice of withdrawal must be timely received by the Adviser at the address set
forth on page 2 of the Offer. A form to use to give notice of withdrawal of a
tender is available by calling the Adviser at the telephone number indicated on
page 2 of the Offer. A tender of an Interest properly withdrawn shall not
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thereafter be deemed to be tendered for purposes of the Offer. However,
subsequent to the withdrawal of a tendered Interest, the Interest may be
tendered again prior to the Expiration Date by following the procedures
described above.
(viii) For purposes of the Offer, the Fund will be deemed to
have accepted (and thereby repurchased) Interests that are tendered when it
gives written notice to the tendering Member of its election to repurchase such
Member's Interest.
(ix) If more than $45 million of Interests are duly tendered
to the Fund prior to the Expiration Date and not withdrawn, the Fund may in its
sole discretion: (a) accept additional Interests in accordance with Rule
13e-4(f)(1)(ii) under the Securities Exchange Act of 1934, as amended (the "1934
Act"); or (b) amend and extend the Offer to increase the amount of Interests
that the Fund is offering to repurchase. The Fund is not required, however, to
take either of these actions. In the event the amount of Interests duly tendered
exceeds the amount of Interests the Fund has offered to repurchase pursuant to
the Offer or any amendment thereof (including the amount of Interests, if any,
the Fund may be willing to repurchase as permitted by Rule 13e-4(f)(1)(ii) under
the 1934 Act), the Fund will accept Interests duly tendered on or before the
Expiration Date for payment on a PRO RATA basis based on the aggregate net asset
value of tendered Interests. The Offer may be extended, amended or canceled in
various other circumstances described in (v) above.
(x) The repurchase of Interests pursuant to the Offer will
have the effect of increasing the proportionate interest in the Fund of Members
that do not tender Interests. Members that retain their Interests may be subject
to increased risks that may possibly result from the reduction in the Fund's
aggregate assets resulting from payment for the Interests tendered. These risks
include the potential for greater volatility due to decreased diversification.
However, the Fund believes that this result is unlikely given the nature of the
Fund's investment program. A reduction in the aggregate assets of the Fund may
result in Members that do not tender Interests bearing higher costs to the
extent that certain expenses borne by the Fund are relatively fixed and may not
decrease if assets decline. These effects may be reduced to the extent that
additional subscriptions for Interests are made by new and existing Members
subsequent to the date of this Offer and thereafter from time to time.
(xi) Not applicable.
(xii) The following discussion is a general summary of the
federal income tax consequences of the repurchase of Interests by the Fund from
Members pursuant to the Offer. Members should consult their own tax advisors for
a complete description of the tax consequences to them of a repurchase of their
Interests by the Fund pursuant to the Offer.
In general, a Member from which an Interest is repurchased
by the Fund will be treated as receiving a distribution from the Fund and will
generally reduce (but not below zero) its adjusted tax basis in its Interest by
the amount of cash and the fair market value of property distributed to such
Member. Such Member generally will not recognize income or gain as a result of
the repurchase, except to the extent (if any) that the amount of consideration
received by the Member exceeds such Member's then adjusted tax basis in such
Member's Interest. A Member's basis in such Member's Interest will be adjusted
for income, gain or loss allocated (for tax purposes) to such Member for periods
prior to the repurchase of such Interest. Cash distributed to a Member in excess
of the adjusted tax basis of such Member's Interest is taxable as a capital
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gain or ordinary income, depending on the circumstances. A Member that has its
entire Interest repurchased by the Fund for cash may generally recognize a loss,
but only to the extent that the amount of consideration received from the Fund
is less than the Member's then adjusted tax basis in such Member's Interest.
(a) (2) Not applicable.
(b) Not applicable.
ITEM 5. PAST CONTRACTS, TRANSACTIONS, NEGOTIATIONS AND AGREEMENTS WITH
RESPECT TO THE ISSUER'S SECURITIES.
The Fund's Confidential Memorandum (the "Confidential Memorandum"),
and the LLC Agreement, which were provided to each Member in advance of
subscribing for Interests, provide that the Fund's Board of Managers has the
discretion to determine whether the Fund will repurchase Interests from Members
from time to time pursuant to written tender offers. The Confidential Memorandum
also states that the Adviser expects that it will recommend to the Board of
Managers that the Fund repurchase Interests from Members twice each year,
effective as of the last business day in June and December. The Fund previously
offered to repurchase Interests from Members pursuant to written tender offers
effective as of June 29, 2007, December 31, 2007, June 30, 2008, December 31,
2008 and June 30, 2009. The Fund is not aware of any contract, arrangement,
understanding or relationship relating, directly or indirectly, to this Offer
(whether or not legally enforceable) between: (i) the Fund and the Adviser or
any Manager of the Fund or any person controlling the Fund or controlling the
Adviser or any Manager of the Fund; and (ii) any person, with respect to
Interests. However, the LLC Agreement provides that the Fund shall be dissolved
if the Interest of any Member that has submitted a written request, in
accordance with the terms of the LLC Agreement, to tender its entire Interest
for repurchase by the Fund has not been repurchased within a period of two years
of the request.
ITEM 6. PURPOSES OF THIS TENDER OFFER AND PLANS OR PROPOSALS OF THE ISSUER OR
AFFILIATE.
(a) The purpose of the Offer is to provide liquidity to Members that
hold Interests as contemplated by and in accordance with the procedures set
forth in the Confidential Memorandum and the LLC Agreement.
(b) Interests that are tendered to the Fund in connection with the
Offer will be retired, although the Fund may issue Interests from time to time
in transactions not involving any public offering, conducted pursuant to Rule
506 of Regulation D under the Securities Act of 1933, as amended. The Fund
currently expects that it will continue to accept subscriptions for Interests as
of the first day of each calendar quarter, but is under no obligation to do so.
(c) The Fund, the Adviser and the Board of Managers do not have any
plans or proposals that relate to or would result in: (1) the acquisition by any
person of additional Interests (other than the Fund's intention to accept
subscriptions for Interests on the first day of each calendar quarter and from
time to time in the discretion of the Fund) or the disposition of Interests; (2)
an extraordinary transaction, such as a merger, reorganization or liquidation,
involving the Fund; (3) any material change in the present distribution policy
or indebtedness or capitalization of the Fund; (4) any change in the identity of
the Adviser or the members of the Board of Managers,
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or in the management of the Fund including, but not limited to, any plans or
proposals to change the number or the term of the members of the Board of
Managers, to fill any existing vacancy on the Board of Managers or to change any
material term of the investment advisory arrangements with the Adviser; (5) a
sale or transfer of a material amount of assets of the Fund (other than as the
Board of Managers determines may be necessary or appropriate to fund any portion
of the purchase price for Interests acquired pursuant to this Offer or in
connection with ordinary portfolio transactions of the Fund); (6) any other
material change in the Fund's structure or business, including any plans or
proposals to make any changes in its fundamental investment policies, as
amended, for which a vote would be required by Section 13 of the 1940 Act; or
(7) any changes in the LLC Agreement or other actions that may impede the
acquisition of control of the Fund by any person.
Because Interests are not traded in any market, Sections (6), (7)
and (8) of Regulation M-A ss.229.1006(c) are not applicable to the Fund.
ITEM 7. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
(a) The Fund expects that the repurchase price for Interests acquired
pursuant to the Offer, which will not exceed $45 million (unless the Fund elects
to repurchase a greater amount), will be derived from one or more of the
following sources: (i) cash on hand; (ii) the proceeds from the sale of and/or
delivery of securities and portfolio assets held by the Fund; and (iii) possibly
borrowings, as described in paragraph (b) below. The Fund will segregate, with
its custodian, cash or U.S. government securities or other liquid securities
equal to the value of the amount estimated to be paid under any Notes as
described above.
(b) Neither the Fund nor the Adviser nor the Board of Managers have
determined at this time to borrow funds to repurchase Interests tendered in
connection with the Offer. However, depending on the dollar amount of Interests
tendered and prevailing general economic and market conditions, the Fund, in its
sole discretion, may decide to seek to borrow money to finance all or a portion
of the repurchase price for Interests, subject to compliance with applicable
law. If the Fund finances any portion of the repurchase price in that manner, it
will deposit assets in a special custody account with its custodian, to serve as
collateral for any amounts so borrowed, and if the Fund were to fail to repay
any such amounts, the lender would be entitled to satisfy the Fund's obligations
from the collateral deposited in the special custody account. The Fund expects
that the repayment of any amounts borrowed will be made from additional funds
contributed to the Fund by existing and/or new Members, withdrawal of its
capital from the investment funds in which it has invested, or from proceeds of
the sale of securities and portfolio assets held by the Fund.
(d) Not applicable.
ITEM 8. INTEREST IN SECURITIES OF THE ISSUER.
(a) Based on July 31, 2009 estimated values of the underlying assets
held by the Fund, the following persons that may be deemed to control the Fund,
may control a person that controls the Fund and/or may be controlled by a person
controlling the Fund, hold Interests:
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(i) Stephen V. Murphy, a Manager, owns through the Stephen V.
Murphy IRA $319,082 (less than 1%) of the outstanding Interests. The address of
the IRA is c/o U.S. Trust Hedge Fund Management, Inc., 225 High Ridge Road,
Stamford, CT 06905.
(b) There have been no transactions involving Interests that were
effected during the past 60 days by the Fund, the Adviser, any Manager or any
person controlling the Fund or the Adviser.
ITEM 9. PERSONS/ASSETS RETAINED, EMPLOYED, COMPENSATED OR USED.
No persons have been employed, retained or are to be compensated by
the Fund to make solicitations or recommendations in connection with the Offer.
ITEM 10. FINANCIAL STATEMENTS.
(a) (1) Reference is made to the following financial statements of the
Fund, which the Fund has prepared and furnished to Members pursuant to Rule
30e-1 under the 1940 Act and filed with the Securities and Exchange Commission
pursuant to Rule 30b2-1 under the 1940 Act, and which are incorporated by
reference in their entirety for the purpose of filing this Schedule TO:
Unaudited financial statements for the semi-annual period ended
September 30, 2007 previously filed on EDGAR on Form N-CSR on December
7, 2007;
Audited financial statements for the fiscal year ended March 31, 2008
previously filed on EDGAR on Form N-CSR on June 9, 2008;
Unaudited financial statements for the semi-annual period ended
September 30, 2008 previously filed on EDGAR on Form N-CSR on December
5, 2008; and
Audited financial statements for the fiscal year ended March 31, 2009
previously filed on EDGAR on Form N-CSR on June 10, 2009.
(2) The Fund is not required to and does not file quarterly
unaudited financial statements under the Securities Exchange Act of 1934, as
amended. The Fund does not have shares, and consequently does not have earnings
per share information.
(3) Not applicable.
(4) The Fund does not have shares, and consequently does not have
book value per share information.
(b) The Fund's assets will be reduced by the amount of the tendered
Interests that are repurchased by the Fund. Thus, income relative to assets may
be affected by the Offer. The Fund does not have shares and consequently does
not have earnings or book value per share information.
-10-
ITEM 11. ADDITIONAL INFORMATION.
(a) (1) None.
(2) None.
(3) Not applicable.
(4) Not applicable.
(5) None.
(b) None.
ITEM 12. EXHIBITS.
Reference is hereby made to the following exhibits which collectively
constitute the Offer to Members and are incorporated herein by reference:
A. Cover Letter to the Offer and Letter of Transmittal.
B. The Offer.
C. Form of Letter of Transmittal.
D. Form of Notice of Withdrawal of Tender.
E. Forms of Letters from the Fund to Members in connection with the
Fund's acceptance of tenders of Interests.
-11-
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC
By: /s/ Steven L. Suss
-----------------------------------
Name: Steven L. Suss
Title: Chief Financial Officer
October 2, 2009
-12-
EXHIBIT INDEX
EXHIBIT
A Cover Letter to the Offer and Letter of Transmittal.
B The Offer.
C Form of Letter of Transmittal.
D Form of Notice of Withdrawal of Tender.
E Forms of Letters from the Fund to Members in connection with the Fund's
acceptance of tenders of Interests.
-13-
EXHIBIT A
Cover Letter to the Offer and Letter of Transmittal
Excelsior Directional Hedge Fund of Funds (TI), LLC
c/o U.S. Trust Hedge Fund Management, Inc.
225 High Ridge Road
Stamford, CT 06905
IF YOU DO NOT WANT TO SELL YOUR LIMITED LIABILITY COMPANY INTERESTS
AT THIS TIME, PLEASE DISREGARD THIS NOTICE.
THIS IS SOLELY A NOTIFICATION OF THE FUND'S OFFER.
October 2, 2009
Dear Member:
We are writing to inform you of important dates relating to an
offer by Excelsior Directional Hedge Fund of Funds (TI), LLC (the "Fund") to
repurchase limited liability company interests in the Fund ("Interest" or
"Interests" as the context requires) from investors (the "Offer").
The Offer period will begin at 12:01 a.m., Eastern Time, on
October 2, 2009. The purpose of the Offer is to provide liquidity to members of
the Fund holding Interests. Interests may be presented to the Fund for
repurchase only by tendering them during one of the Fund's announced tender
offers.
NO ACTION IS REQUIRED IF YOU DO NOT WISH TO SELL ANY PORTION OF
YOUR INTEREST AT THIS TIME. IF YOU DO NOT WISH TO SELL YOUR INTERESTS, SIMPLY
DISREGARD THIS NOTICE.
Should you wish to tender your Interest or a portion of your
Interest for repurchase by the Fund during this Offer period, please complete
and return the enclosed Letter of Transmittal BY MAIL to U.S. Trust Hedge Fund
Management, Inc., 225 High Ridge Road, Stamford, CT 06905, Attn: Client Service.
PLEASE NOTE THAT LETTERS OF TRANSMITTAL ARE NO LONGER BEING ACCEPTED BY FAX
TRANSMISSION, HOWEVER, THEY MAY BE SENT VIA EMAIL TO
AICLIENTSERVICE@BANKOFAMERICA.COM. PLEASE INCLUDE THE WORDS "EXCELSIOR
DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC TENDER DOCUMENTS" IN THE SUBJECT LINE.
All tenders of Interests must be received by the Fund's adviser, U.S. Trust
Hedge Fund Management, Inc., in good order by October 30, 2009.
If you have any questions, please refer to the attached Offer
document, which contains additional important information about the tender
offer, or call Client Service at (866) 921-7951.
Sincerely,
Excelsior Directional Hedge Fund of Funds (TI), LLC
A-1
EXHIBIT B
The Offer
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC
225 High Ridge Road
Stamford, CT 06905
OFFER TO REPURCHASE UP TO $45 MILLION OF OUTSTANDING
INTERESTS AT NET ASSET VALUE
DATED OCTOBER 2, 2009
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT
12:00 MIDNIGHT, EASTERN TIME, ON OCTOBER 30, 2009,
UNLESS THE OFFER IS EXTENDED
Dear Member:
Excelsior Directional Hedge Fund of Funds (TI), LLC, a
closed-end, non-diversified, management investment company organized as a
Delaware limited liability company (the "Fund"), is offering to repurchase for
cash on the terms and conditions set forth in this offer to repurchase and the
related Letter of Transmittal (which together constitute the "Offer") up to $45
million of interests in the Fund or portions thereof pursuant to tenders by
members of the Fund ("Members") at a price equal to their net asset value,
determined as of December 31, 2009, if the Offer expires on October 30, 2009. If
the Fund elects to extend the tender offer period, for the purpose of
determining the repurchase price for tendered interests, the net asset value of
such interests will be determined at the close of business on the last business
day of the month in which the Offer actually expires. (As used in this Offer,
the term "Interest" or "Interests," as the context requires, shall refer to the
interests in the Fund and portions thereof representing beneficial interests in
the Fund.) This Offer, which is being made to all Members, is conditioned on a
minimum of $25,000 in Interests being tendered by a Member tendering only a
portion of an Interest for repurchase, and is subject to certain other
conditions described below. Interests are not traded on any established trading
market and are subject to strict restrictions on transferability pursuant to the
Fund's Limited Liability Company Agreement dated March 30, 2007 (the "LLC
Agreement").
Members should realize that the value of the Interests tendered
in this Offer will likely change between July 31, 2009 (the last time net asset
value was calculated) and December 31, 2009, when the value of Interests
tendered to the Fund for repurchase will be determined for purposes of
calculating the repurchase price of such Interests. Members tendering their
Interests should also note that they will remain Members with respect to the
Interests, or portion thereof, tendered and accepted for repurchase by the Fund
through December 31, 2009, the valuation date of the Offer when the net asset
value of their Interest is calculated. Any tendering Members that wish to obtain
the estimated net asset value of their Interests should contact U.S. Trust Hedge
Fund Management, Inc., at the telephone number or address set forth below,
Monday through Friday, except holidays, during normal business hours of 9:00
a.m. to 5:00 p.m. (Eastern Time).
B-1
Members desiring to tender all or any portion of their Interests
for repurchase in accordance with the terms of the Offer should complete and
sign the attached Letter of Transmittal and MAIL it to the Fund in the manner
set forth in Section 4 below.
IMPORTANT
Neither the Fund, nor its Board of Managers nor U.S. Trust Hedge
Fund Management, Inc. make any recommendation to any Member as to whether to
tender or refrain from tendering Interests. Members must make their own
decisions whether to tender Interests, and, if they choose to do so, the portion
of their Interests to tender.
Because each Member's investment decision is a personal one,
based on their own financial circumstances, no person has been authorized to
make any recommendation on behalf of the Fund as to whether Members should
tender Interests pursuant to the Offer. No person has been authorized to give
any information or to make any representations in connection with the Offer
other than those contained herein or in the Letter of Transmittal. If given or
made, such recommendation and such information and representations must not be
relied on as having been authorized by the Fund.
This transaction has neither been approved nor disapproved by the
Securities and Exchange Commission (the "SEC"). Neither the SEC nor any state
securities commission have passed on the fairness or merits of this transaction
or on the accuracy or adequacy of the information contained in this document.
Any representation to the contrary is unlawful.
Questions, requests for assistance and requests for additional
copies of the Offer may be directed to the Adviser:
U.S. Trust Hedge Fund Management, Inc.
225 High Ridge Road
Stamford, CT 06905
Attn: Client Service
Phone: (866) 921-7951
B-2
TABLE OF CONTENTS
1. Background and Purpose of the Offer.......................................6
2. Offer to Purchase and Price...............................................7
3. Amount of Tender..........................................................7
4. Procedure for Tenders.....................................................8
5. Withdrawal Rights.........................................................9
6. Purchases and Payment.....................................................9
7. Certain Conditions of the Offer..........................................11
8. Certain Information About the Fund.......................................12
9. Certain Federal Income Tax Consequences..................................13
10. Miscellaneous............................................................13
B-3
SUMMARY TERM SHEET
o As stated in the offering documents of Excelsior Directional
Hedge Fund of Funds (TI), LLC (hereinafter "we" or the "Fund"),
we will repurchase your limited liability company interests in
the Fund ("Interest" or "Interests" as the context requires) at
their net asset value (that is, the value of the Fund's assets
minus its liabilities, multiplied by the proportionate interest
in the Fund you desire to redeem). This offer (the "Offer") will
remain open until 12:00 midnight, Eastern Time, on October 30,
2009 (such time and date being hereinafter called the "Initial
Expiration Date"), or such later date as corresponds to any
extension of the Offer. The later of the Initial Expiration Date
or the latest time and date to which the Offer is extended is
called the "Expiration Date." The net asset value will be
calculated for this purpose on December 31, 2009 or, if the Offer
is extended, on the last business day of the month in which the
Offer actually expires (the "Valuation Date"). The conditions
under which we may extend the Offer are discussed in Section 7
below.
o The Fund reserves the right to adjust the Valuation Date to
correspond with any extension of the Offer. The Fund will review
the net asset value calculation of Interests as of December 31,
2009 during the Fund's audit for its fiscal year ending March 31,
2010, which the Fund expects will be completed by the end of May
2010. This December 31, 2009 net asset value, as reviewed, will
be used to determine the final amount paid for tendered
Interests.
o You may tender your entire Interest, a portion of your Interest
defined as a specific dollar value, or the portion of your
Interest above the required minimum capital account balance. If
you tender your entire Interest (or a portion of your Interest)
and we accept that Interest for repurchase, we will give you a
non-interest bearing, non-transferable promissory note (the
"Note") entitling you to an amount equal to the net asset value
of the Interest tendered (valued in accordance with the Fund's
Limited Liability Company Agreement dated March 30, 2007 (the
"LLC Agreement")), determined as of December 31, 2009 (or if the
Offer is extended, the net asset value determined on the
Valuation Date).
o If you tender your entire Interest, the Note will be held for you
in a special custody account with PFPC Trust Company ("PFPC") and
will entitle you to an initial payment in cash and/or marketable
securities (valued in accordance with the LLC Agreement) equal to
at least 95% of the unaudited net asset value of the Interest you
tendered that is accepted for repurchase by the Fund (the
"Initial Payment") which will be paid to your account with Bank
of America, N.A., or an affiliated bank (collectively, "Bank of
America"), or wired to your bank account if you do not have a
Bank of America account,
B-4
within 30 calendar days after the Valuation Date or, if we have
requested withdrawals of capital from any investment funds in
order to finance the repurchase of Interests, ten business days
after we have received at least 95% of the aggregate amount
withdrawn from such investment funds.
o The Note will also entitle you to a contingent payment (the
"Contingent Payment") equal to the excess, if any, of (a) the net
asset value of the Interest tendered by you and accepted by the
Fund for repurchase as of the Valuation Date (as it may be
adjusted based on the annual audit of the Fund's March 31, 2010,
financial statements) over (b) the Initial Payment. The Fund will
deposit the aggregate amount of the Contingent Payments in a
separate, interest bearing account and will pay any interest
actually earned thereon PRO RATA to the Members whose Interests
have been repurchased. The Contingent Payment (plus any interest
earned) will be paid, within ten calendar days after the
completion of the Fund's annual audit. The Contingent Payment
will also be paid to your Bank of America account or wired to
your bank account if you do not have a Bank of America account.
o If you tender only a portion of your Interest, the Note will
entitle you to a payment in cash and/or marketable securities
(valued in accordance with the LLC Agreement) equal to 100% of
the unaudited net asset value of the portion of the Interest and
will be paid to your account with Bank of America or wired to
your bank account if you do not have a Bank of America account,
within 30 calendar days after the Valuation Date or, if we have
requested withdrawals of capital from any investment funds in
order to fund the repurchase of Interests, within ten business
days after we have received at least 95% of the total amount
withdrawn from such investment funds.
o If you tender only a portion of your Interest, you are required
to tender a minimum of $25,000 and you must maintain a capital
account balance of $50,000 or more. We reserve the right to
repurchase less than the amount you tender if the repurchase
would cause your capital account to have less than the required
minimum balance or if the total amount tendered by members of the
Fund ("Members") is more than $45 million.
o If we accept the tender of your entire Interest or a portion of
your Interest, we will pay the proceeds from: cash on hand;
withdrawals of capital from the investment funds in which we have
invested; the proceeds from the sale of securities and portfolio
assets held by the Fund; and/or borrowings.
o Following this summary is a formal notice of our offer to
repurchase your Interest. This Offer remains open to you until
12:00 midnight, Eastern Time, on October 30, 2009, the expected
expiration date of the Offer. Until that time, you have the right
to change your mind and withdraw any tender of your Interest. You
will also have the right to withdraw the tender of your Interest
at any time after December 1, 2009, 40 business days from the
B-5
commencement of the Offer, assuming your Interest has not yet
been accepted for repurchase by the Fund on or before that date.
o If you would like us to repurchase your Interest or a portion of
your Interest, you should MAIL the Letter of Transmittal
(enclosed with the Offer), to U.S. Trust Hedge Fund Management,
Inc. (the "Adviser"), 225 High Ridge Road, Stamford, CT 06905,
attention Client Service. PLEASE NOTE THAT LETTERS OF TRANSMITTAL
ARE NO LONGER BEING ACCEPTED BY FAX TRANSMISSION, HOWEVER, THEY
MAY BE SENT VIA EMAIL TO AICLIENTSERVICE@BANKOFAMERICA.COM.
PLEASE INCLUDE THE WORDS "EXCELSIOR DIRECTIONAL HEDGE FUND OF
FUNDS (TI), LLC TENDER DOCUMENTS" IN THE SUBJECT LINE. Of course,
the value of your Interests will change between July 31, 2009
(the last time net asset value was calculated) and December 31,
2009, when the value of your Interest will be determined for
purposes of calculating the repurchase price to be paid by us for
your Interest.
o If you would like to obtain the estimated net asset value of your
Interest, which we calculate monthly, based upon the information
we receive from the managers of the investment funds in which we
invest, you may contact the Adviser at (866) 921-7951 or at the
address set forth on page 2, Monday through Friday, except
holidays, during normal business hours of 9:00 a.m. to 5:00 p.m.
(Eastern Time).
o Please note that, just as you have the right to withdraw the
tender of your Interest, we have the right to cancel, amend or
postpone this Offer at any time before 12:00 midnight, Eastern
Time, on October 30, 2009. The conditions under which we may
cancel, amend, postpone or extend the Offer are discussed in
Section 7 below. Also realize that although the Offer expires on
October 30, 2009, you will remain a Member with respect to the
Interest, or portion thereof, you tendered that is accepted for
repurchase by the Fund through December 31, 2009, when the net
asset value of your Interest is calculated.
1. BACKGROUND AND PURPOSE OF THE OFFER. The purpose of the Offer is to
provide liquidity to Members that hold Interests, as contemplated by and in
accordance with the procedures set forth in the Fund's Confidential Memorandum
(the "Confidential Memorandum"), and the LLC Agreement. The Confidential
Memorandum and the LLC Agreement, which were provided to each Member in advance
of subscribing for Interests, provide that the board of managers of the Fund
(each a "Manager," and collectively, the "Board of Managers") has the discretion
to determine whether the Fund will repurchase Interests from Members from time
to time pursuant to written tender offers. The Confidential Memorandum also
states that the Adviser expects that it will recommend to the Board of Managers
that the Fund offer to repurchase Interests from Members twice each year,
effective as of the last business day of June and December. The Fund previously
offered to repurchase Interests from Members pursuant to written tender offers
effective as of June 29, 2007, December 31, 2007, June 30, 2008, December 31,
2008 and June
B-6
30, 2009. Because there is no secondary trading market for Interests and
transfers of Interests are prohibited without prior approval of the Fund, the
Board of Managers has determined, after consideration of various matters,
including but not limited to those set forth in the Confidential Memorandum,
that the Offer is in the best interests of Members in order to provide liquidity
for Interests as contemplated in the Confidential Memorandum and the LLC
Agreement. The Board of Managers intends to consider the continued desirability
of the Fund making an offer to repurchase Interests from time to time in the
future, but the Fund is not required to make any such offer.
The repurchase of Interests pursuant to the Offer will have the effect
of increasing the proportionate interest in the Fund of Members that do not
tender Interests. Members that retain their Interests may be subject to
increased risks due to the reduction in the Fund's aggregate assets resulting
from payment for the Interests tendered. These risks include the potential for
greater volatility due to decreased diversification. However, the Fund believes
that this result is unlikely given the nature of the Fund's investment program.
A reduction in the aggregate assets of the Fund may result in Members that do
not tender Interests bearing higher costs to the extent that certain expenses
borne by the Fund are relatively fixed and may not decrease if assets decline.
These effects may be reduced to the extent that additional subscriptions for
Interests are made by new and existing Members subsequent to the date of this
Offer and thereafter from time to time.
Interests that are tendered to the Fund in connection with this Offer
will be retired, although the Fund may issue new Interests from time to time in
transactions not involving any public offering conducted pursuant to Rule 506 of
Regulation D under the Securities Act of 1933, as amended. The Fund currently
expects that it will continue to accept subscriptions for Interests as of the
first day of each calendar quarter, but is under no obligation to do so.
2. OFFER TO REPURCHASE AND PRICE. The Fund will, on the terms and
subject to the conditions of the Offer, repurchase up to $45 million of those
outstanding Interests that are properly tendered by Members and not withdrawn
(in accordance with Section 5 below) prior to the Expiration Date. The Fund
reserves the right to extend, amend or cancel the Offer as described in Sections
3 and 7 below. The repurchase price of an Interest tendered will be its net
asset value on December 31, 2009 or, if the Offer is extended, on the Valuation
Date, payable as set forth in Section 6. The Fund reserves the right to adjust
the Valuation Date to correspond with any extension of the Offer.
The underlying capital of the Fund, limited liability company
interests of Excelsior Directional Hedge Fund of Funds Master Fund, LLC (the
"Master Fund"), was last valued, as of close of business on July 31, 2009, at
approximately $296,369,314. Members may obtain monthly estimated net asset value
information, which the Fund calculates based on the information it receives from
the managers of the investment funds in which the Fund invests, until the
expiration of the Offer, by contacting the Adviser at the telephone number or
address set forth on page 2, Monday through Friday, except holidays, during
normal business hours of 9:00 a.m. to 5:00 p.m. (Eastern Time).
B-7
3. AMOUNT OF TENDER. Subject to the limitations set forth below,
Members may tender their entire Interest, a portion of their Interest defined as
a specific dollar value or the portion of their Interest above the required
minimum capital account balance, as described below. A Member that tenders for
repurchase only a portion of such Member's Interest shall be required to
maintain a capital account balance of $50,000 or more. If a Member tenders an
amount that would cause the Member's capital account balance to fall below the
required minimum, the Fund reserves the right to reduce the amount to be
repurchased from such Member so that the required minimum balance is maintained.
The Offer, which is being made to all Members, is conditioned on a minimum
amount of $25,000 in Interests being tendered by the Member if the Member is
tendering only a portion of an Interest for repurchase.
If the amount of Interests that are properly tendered pursuant to the
Offer and not withdrawn pursuant to Section 5 below is less than or equal to $45
million (or such greater amount as the Fund may elect to repurchase pursuant to
the Offer), the Fund will, on the terms and subject to the conditions of the
Offer, repurchase all of the Interests so tendered unless the Fund elects to
cancel or amend the Offer, or postpone acceptance of tenders made pursuant to
the Offer, as provided in Section 7 below. If more than $45 million of Interests
are duly tendered to the Fund prior to the Expiration Date and not withdrawn
pursuant to Section 5 below, the Fund may in its sole discretion: (a) accept
additional Interests in accordance with Rule 13e-4(f)(1)(ii) under the
Securities Exchange Act of 1934, as amended (the "1934 Act"); or (b) amend and
extend the Offer to increase the amount of Interests that the Fund is offering
to repurchase. The Fund is not required, however, to take either of these
actions. In the event the amount of Interests duly tendered exceeds the amount
of Interests the Fund has offered to repurchase pursuant to the Offer or any
amendment thereof (including the amount of Interests, if any, the Fund may be
willing to repurchase as permitted by Rule 13e-4(f)(1)(ii) under the 1934 Act),
the Fund will accept Interests duly tendered on or before the Expiration Date
for payment on a PRO RATA basis based on the aggregate net asset value of
tendered Interests. The Offer may be extended, amended or canceled in various
other circumstances described in Section 7 below.
4. PROCEDURE FOR TENDERS. Members wishing to tender Interests pursuant
to the Offer should MAIL a completed and executed Letter of Transmittal to the
Adviser, to the attention of Client Service, at the address set forth on page 2.
The completed and executed Letter of Transmittal must be received by the
Adviser, BY MAIL, no later than the Expiration Date. PLEASE NOTE THAT LETTERS OF
TRANSMITTAL ARE NO LONGER BEING ACCEPTED BY FAX TRANSMISSION, HOWEVER, THEY MAY
BE SENT VIA EMAIL TO AICLIENTSERVICE@BANKOFAMERICA.COM. PLEASE INCLUDE THE WORDS
"EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC TENDER DOCUMENTS" IN THE
SUBJECT LINE.
The Fund recommends that all documents be submitted to the Adviser via
certified mail, return receipt requested. Members wishing to confirm receipt of
a Letter of Transmittal may contact the Adviser at the address or telephone
number set forth on page 2. The method of delivery of any documents is at the
election and complete risk of the Member tendering an Interest. All questions as
to the validity, form, eligibility (including time of receipt) and acceptance of
tenders will be determined by the Fund, in its sole discretion, and such
determination shall be final and binding. The Fund reserves the absolute right
to reject any or all
B-8
tenders determined by it not to be in appropriate form or the acceptance of or
payment for which would, in the opinion of counsel for the Fund, be unlawful.
The Fund also reserves the absolute right to waive any of the conditions of the
Offer or any defect in any tender with respect to any particular Interest or any
particular Member, and the Fund's interpretation of the terms and conditions of
the Offer will be final and binding. Unless waived, any defects or
irregularities in connection with tenders must be cured within such time as the
Fund shall determine. Tenders will not be deemed to have been made until the
defects or irregularities have been cured or waived. Neither the Fund nor the
Adviser nor the Board of Managers shall be obligated to give notice of any
defects or irregularities in tenders, nor shall any of them incur any liability
for failure to give such notice.
5. WITHDRAWAL RIGHTS. Any Member tendering an Interest pursuant
to this Offer may withdraw its tender at any time prior to or on the Expiration
Date and, if such Member's Interest has not yet been accepted for repurchase by
the Fund, at any time after December 1, 2009, 40 business days from the
commencement of the Offer. To be effective, any notice of withdrawal of a tender
must be timely received by the Adviser at the address set forth on page 2. A
form to give notice of withdrawal of a tender is available by calling the
Adviser at the telephone number indicated on page 2 of the Offer. All questions
as to the form and validity (including time of receipt) of notices of withdrawal
of the tender will be determined by the Fund, in its sole discretion, and such
determination shall be final and binding. A tender of Interests properly
withdrawn shall not thereafter be deemed to be tendered for purposes of the
Offer. However, withdrawn Interests may be tendered again prior to the
Expiration Date by following the procedures described in Section 4.
6. REPURCHASES AND PAYMENT. For purposes of the Offer, the Fund
will be deemed to have accepted (and thereby repurchased) Interests that are
tendered as, if and when, it gives written notice to the tendering Member of its
election to repurchase such Interest. As stated in Section 2 above, the
repurchase price of an Interest tendered by any Member will be the net asset
value thereof determined as of December 31, 2009, if the Offer expires on the
Initial Expiration Date, and otherwise the net asset value thereof as of the
last business day of the month in which the Offer expires. The net asset value
will be determined after all allocations to capital accounts of the Member
required to be made by the LLC Agreement have been made.
Members may tender their entire Interest, a portion of their
Interest defined as a specific dollar value or the portion of their Interest
above the required minimum capital account balance. Each Member that tenders its
entire Interest or a portion thereof that is accepted for repurchase will be
given a Note within ten calendar days of the acceptance of the Member's Interest
for repurchase. The Note will be held for the Member in a special custody
account with PFPC. The Note will entitle the Member to be paid an amount equal
to the value, determined as of the Valuation Date, of the Interest or portion
thereof being repurchased (subject to adjustment upon completion of the next
annual audit of the Fund's financial statements). This amount will be the value
of the Member's capital account (or the portion thereof being repurchased)
determined as of the Valuation Date and will be based on the net asset value of
the Fund's assets determined as of that date, after giving effect to all
allocations to be made as of that date.
B-9
If a Member tenders its entire Interest, the Note will entitle
the Member to receive an Initial Payment in cash and/or marketable securities
(valued in accordance with the LLC Agreement) equal to at least 95% of the
unaudited net asset value of the Interest that is tendered and accepted for
repurchase by the Fund, determined as of the Valuation Date. Payment of this
amount will be made within 30 calendar days after the Valuation Date or, if the
Fund has requested withdrawals of its capital from any investment funds in order
to finance the repurchase of Interests, within ten business days after the Fund
has received at least 95% of the aggregate amount withdrawn by the Fund from
such investment funds.
The Note will also entitle a Member to receive a Contingent
Payment equal to the excess, if any, of (a) the net asset value of the Interest
tendered by the Member and accepted by the Fund for repurchase as of the
Valuation Date, as it may be adjusted based on the annual audit of the Fund's
March 31, 2010 financial statements, over (b) the Initial Payment. The Fund will
deposit the aggregate amount of the Contingent Payments in a separate, interest
bearing account and will pay any interest actually earned thereon PRO RATA to
the Members whose Interests have been repurchased. The Contingent Payment (plus
any interest earned) will be payable within ten calendar days after the
completion of the Fund's annual audit. It is anticipated that the annual audit
of the Fund's financial statements will be completed within 60 days after March
31, 2010, the fiscal year end of the Fund.
A Member that tenders for repurchase only a portion of such
Member's Interest will receive a Note that will entitle the Member to a payment
in cash and/or marketable securities (valued in accordance with the LLC
Agreement) equal to 100% of the net asset value of the portion of the Interest
tendered by the Member that is accepted for repurchase by the Fund. Payment
pursuant to the Note will be made to the Member's account at Bank of America or
wired to the Member's bank account if the Member does not have a Bank of America
account, within 30 calendar days after the Valuation Date or, if the Fund has
requested withdrawals of its capital from any investment funds in order to
finance the repurchase of Interests, within ten business days after the Fund has
received at least 95% of the aggregate amount withdrawn by the Fund from such
investment funds.
Although the Fund has retained the option to pay all or a portion
of the repurchase price for Interests by distributing marketable securities, the
repurchase price will be paid entirely in cash except in the unlikely event that
the Board of Managers determines that the distribution of securities is
necessary to avoid or mitigate any adverse effect of the Offer on the remaining
Members. In such event, the Fund would make such payment on a pro rata basis so
that each Member would receive the same type of consideration.
The Note pursuant to which Members will receive the Initial
Payment and Contingent Payment (together, the "Payments") will be held in a
special custody account with PFPC for the benefit of Members tendering Interests
in the Fund. All payments due pursuant to the Note will also be deposited
directly to the tendering Member's account at Bank of America if the Member has
an account with Bank of America and will be subject upon withdrawal from such
accounts to any fees that Bank of America would customarily assess upon the
withdrawal of cash from such account.
B-10
It is expected that cash payments for Interests acquired pursuant
to the Offer, which will not exceed $45 million (unless the Fund elects to
repurchase a greater amount), will be derived from: (a) cash on hand; (b)
withdrawal of capital from the investment funds in which the Fund invests; (c)
the proceeds from the sale of securities and portfolio assets held by the Fund;
and/or (d) possibly borrowings, as described below. The Fund will segregate with
its custodian cash or U.S. government securities or other liquid securities
equal to the value of the amount estimated to be paid under the Notes, as
described above. Neither the Fund nor the Board of Managers nor the Adviser have
determined at this time to borrow funds to repurchase Interests tendered in
connection with the Offer. However, depending on the dollar amount of Interests
tendered and prevailing general economic and market conditions, the Fund, in its
sole discretion, may decide to finance any portion of the repurchase price,
subject to compliance with applicable law, through borrowings. If the Fund
finances any portion of the repurchase price in that manner, it will deposit
assets in a special custody account with its custodian, PFPC, to serve as
collateral for any amounts so borrowed, and if the Fund were to fail to repay
any such amounts, the lender would be entitled to satisfy the Fund's obligations
from the collateral deposited in the special custody account. The Fund expects
that the repayment of any amounts borrowed will be made from additional funds
contributed to the Fund by existing and/or new Members, withdrawal of capital
from the investment funds in which it has invested or from the proceeds of the
sale of securities and portfolio assets held by the Fund.
7. CERTAIN CONDITIONS OF THE OFFER. The Fund reserves the right,
at any time and from time to time, to extend the period of time during which the
Offer is pending by notifying Members of such extension. In the event that the
Fund so elects to extend the tender period, for the purpose of determining the
repurchase price for tendered Interests, the net asset value of such Interests
will be determined as of the close of business on the last business day of the
month in which the Offer expires. During any such extension, all Interests
previously tendered and not withdrawn will remain subject to the Offer. The Fund
also reserves the right, at any time and from time to time, up to and including
acceptance of tenders pursuant to the Offer, to: (a) cancel the Offer in the
circumstances set forth in the following paragraph and in the event of such
cancellation not to repurchase or pay for any Interests tendered pursuant to the
Offer; (b) amend the Offer; and (c) postpone the acceptance of Interests for
repurchase. If the Fund determines to amend the Offer or to postpone the
acceptance of Interests tendered, it will, to the extent necessary, extend the
period of time during which the Offer is open as provided above and will
promptly notify Members.
The Fund may cancel the Offer, amend the Offer or postpone the
acceptance of tenders made pursuant to the Offer if: (a) the Fund would not be
able to liquidate portfolio securities in a manner that is orderly and
consistent with the Fund's investment objective and policies in order to
repurchase Interests tendered pursuant to the Offer; (b) there is, in the
judgment of the Board of Managers, any (i) legal action or proceeding instituted
or threatened challenging the Offer or otherwise materially adversely affecting
the Fund, (ii) declaration of a banking moratorium by federal or state
authorities or any suspension of payment by banks in the United States or the
State of Connecticut that is material to the Fund, (iii) limitation imposed by
federal or state authorities on the extension of credit by lending institutions,
(iv) suspension of trading on any organized exchange or over-the-counter market
where the Fund has a material investment, (v) commencement of war, significant
change in armed hostilities or other
B-11
international or national calamity directly or indirectly involving the United
States since the commencement of the Offer that is material to the Fund, (vi)
material decrease in the net asset value of the Fund from the net asset value of
the Fund as of commencement of the Offer, or (vii) other event or condition that
would have a material adverse effect on the Fund or its Members if Interests
tendered pursuant to the Offer were repurchased; or (c) the Board of Managers
determines that it is not in the best interest of the Fund to repurchase
Interests pursuant to the Offer. However, there can be no assurance that the
Fund will exercise its right to extend, amend or cancel the Offer or to postpone
acceptance of tenders pursuant to the Offer.
8. CERTAIN INFORMATION ABOUT THE FUND. The Fund is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as a
closed-end, non-diversified, management investment company. It is organized as a
Delaware limited liability company. The principal office of the Fund is located
at 225 High Ridge Road, Stamford, CT 06905 and the telephone number is (203)
352-4497. Interests are not traded on any established trading market and are
subject to strict restrictions on transferability pursuant to the LLC Agreement.
The Fund, the Adviser and the Board of Managers do not have any
plans or proposals that relate to or would result in: (1) the acquisition by any
person of additional Interests (other than the Fund's intention to accept
subscriptions for Interests on the first day of each calendar quarter and from
time to time in the discretion of the Fund) or the disposition of Interests; (2)
an extraordinary transaction, such as a merger, reorganization or liquidation,
involving the Fund; (3) any material change in the present distribution policy
or indebtedness or capitalization of the Fund; (4) any change in the identity of
the Adviser or the members of the Board of Managers, or in the management of the
Fund including, but not limited to, any plans or proposals to change the number
or the term of the members of the Board of Managers, to fill any existing
vacancy on the Board of Managers or to change any material term of the
investment advisory arrangements with the Adviser; (5) a sale or transfer of a
material amount of assets of the Fund (other than as the Board of Managers
determines may be necessary or appropriate to fund any portion of the purchase
price for Interests acquired pursuant to this Offer or in connection with
ordinary portfolio transactions of the Fund); (6) any other material change in
the Fund's structure or business, including any plans or proposals to make any
changes in its fundamental investment policies, as amended, for which a vote
would be required by Section 13 of the 1940 Act; or (7) any changes in the LLC
Agreement or other actions that may impede the acquisition of control of the
Fund by any person.
There have been no transactions involving the Interests that were
effected during the past 60 days by the Fund, the Adviser, any Manager, or any
person controlling the Fund or the Adviser.
Based on July 31, 2009 estimated values of the underlying assets
held by the Fund, the following persons that may be deemed to control the Fund,
may control a person that controls the Fund and/or may be controlled by a person
controlling the Fund, held Interests:
(i) Stephen V. Murphy, a Manager, owns through the Stephen
V. Murphy IRA $319,082 (less than 1%) of the outstanding Interests. The address
of the IRA is c/o U.S. Trust Hedge Fund Management, Inc., 225 High Ridge Road,
Stamford, CT 06905.
B-12
9. CERTAIN FEDERAL INCOME TAX CONSEQUENCES. The following
discussion is a general summary of the federal income tax consequences of the
repurchase of Interests by the Fund from Members pursuant to the Offer. Members
should consult their own tax advisors for a complete description of the tax
consequences to them of a repurchase of their Interests by the Fund pursuant to
the Offer.
In general, a Member from which an Interest is repurchased by the
Fund will be treated as receiving a distribution from the Fund and will
generally reduce (but not below zero) its adjusted tax basis in its Interest by
the amount of cash and the fair market value of property distributed to such
Member. Such Member generally will not recognize income or gain as a result of
the repurchase, except to the extent (if any) that the amount of consideration
received by the Member exceeds such Member's then adjusted tax basis in such
Member's Interest. A Member's basis in such Member's Interest will be reduced
(but not below zero) by the amount of consideration received by the Member from
the Fund in connection with the repurchase of such Interest. A Member's basis in
such Member's Interest will be adjusted for income, gain or loss allocated (for
tax purposes) to such Member for periods prior to the repurchase of such
Interest. Cash distributed to a Member in excess of the adjusted tax basis of
such Member's Interest is taxable as capital gain or ordinary income, depending
on the circumstances. A Member that has its entire Interest repurchased by the
Fund for cash may generally recognize a loss, but only to the extent that the
amount of consideration received from the Fund is less than the Member's then
adjusted tax basis in such Member's Interest.
10. MISCELLANEOUS. The Offer is not being made to, nor will
tenders be accepted from, Members in any jurisdiction in which the Offer or its
acceptance would not comply with the securities or Blue Sky laws of such
jurisdiction. The Fund is not aware of any jurisdiction in which the Offer or
tenders pursuant thereto would not be in compliance with the laws of such
jurisdiction. However, the Fund reserves the right to exclude Members from the
Offer in any jurisdiction in which it is asserted that the Offer cannot lawfully
be made. The Fund believes such exclusion is permissible under applicable laws
and regulations, provided the Fund makes a good faith effort to comply with any
state law deemed applicable to the Offer.
The Fund has filed an Issuer Tender Offer Statement on Schedule
TO with the Securities and Exchange Commission, which includes certain
information relating to the Offer summarized herein. A free copy of such
statement may be obtained from the Fund by contacting the Adviser at the address
and telephone number set forth on page 2 or from the Securities and Exchange
Commission's internet web site, http://www.sec.gov. For a fee, a copy may be
obtained from the public reference office of the Securities and Exchange
Commission at 100 F Street, N.E., Washington, DC 20549.
B-13
ANNEX A
Financial Statements
The following financial statements were previously filed with the
Securities and Exchange Commission and mailed to Members:
Unaudited financial statements for the semi-annual period ended
September 30, 2007 previously filed on EDGAR on Form N-CSR on
December 7, 2007;
Audited financial statements for the fiscal year ended March 31,
2008 previously filed on EDGAR on Form N-CSR on June 9, 2008;
Unaudited financial statements for the semi-annual period ended
September 30, 2008 previously filed on EDGAR on Form N-CSR on
December 5, 2008; and
Audited financial statements for the fiscal year ended March 31,
2009 previously filed on EDGAR on Form N-CSR on June 10, 2009.
EXHIBIT C
LETTER OF TRANSMITTAL
Regarding
Interests
in
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC
Tendered Pursuant to the Offer
Dated October 2, 2009
------------------------------------------------------------------
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE
AT, AND THIS LETTER OF TRANSMITTAL MUST BE
RECEIVED BY THE FUND BY, 12:00 MIDNIGHT, EASTERN TIME, ON
OCTOBER 30, 2009, UNLESS THE OFFER IS EXTENDED.
------------------------------------------------------------------
COMPLETE THIS LETTER OF TRANSMITTAL AND RETURN BY MAIL TO:
U.S. Trust Hedge Fund
Management, Inc.
225 High Ridge Road
Stamford, CT 06905
Attn: Client Service
For additional information:
Phone: (866) 921-7951
C-1
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC - LETTER OF TRANSMITTAL
Ladies and Gentlemen:
The undersigned hereby tenders to Excelsior Directional Hedge
Fund of Funds (TI), LLC, a closed-end, non-diversified, management investment
company organized under the laws of the State of Delaware (the "Fund"), the
limited liability company interest in the Fund (hereinafter the "Interest" or
"Interests" as the context requires) or portion thereof held by the undersigned,
described and specified below, on the terms and conditions set forth in the
offer to repurchase, dated October 2, 2009, receipt of which is hereby
acknowledged, and in this Letter of Transmittal (which together constitute the
"Offer"). THE TENDER AND THIS LETTER OF TRANSMITTAL ARE SUBJECT TO ALL THE TERMS
AND CONDITIONS SET FORTH IN THE OFFER, INCLUDING, BUT NOT LIMITED TO, THE
ABSOLUTE RIGHT OF THE FUND TO REJECT ANY AND ALL TENDERS DETERMINED BY FUND, IN
ITS SOLE DISCRETION, NOT TO BE IN THE APPROPRIATE FORM.
The undersigned hereby sells to the Fund the Interest or portion
thereof tendered hereby pursuant to the Offer. The undersigned hereby warrants
that the undersigned has full authority to sell the Interest or portion thereof
tendered hereby and that the Fund will acquire good title thereto, free and
clear of all liens, charges, encumbrances, conditional sales agreements or other
obligations relating to the sale thereof, and not subject to any adverse claim,
when and to the extent the same are repurchased by it. Upon request, the
undersigned will execute and deliver any additional documents necessary to
complete the sale in accordance with the terms of the Offer.
The undersigned recognizes that under certain circumstances set
forth in the Offer, the Fund may not be required to repurchase any of the
Interests in the Fund or portions thereof tendered hereby.
A promissory note for the repurchase price will be deposited into
a special custody account with PFPC Trust Company ("PFPC"). The initial payment
of the repurchase price for the Interest or portion thereof tendered by the
undersigned will be made by transfer of the funds to the undersigned's account
at Bank of America, N.A. or an affiliated bank, (collectively "Bank of
America"), or wired to the undersigned's bank account if the undersigned does
not have a Bank of America account, as described in Section 6 of the Offer. The
undersigned hereby represents and warrants that the undersigned understands that
upon a withdrawal of such cash payment from a Bank of America account, Bank of
America may subject such withdrawal to any fees that Bank of America would
customarily assess upon the withdrawal of cash from such account.
The promissory note will also reflect the contingent payment (the
"Contingent Payment") portion of the repurchase price, if any, as described in
Section 6 of the Offer. Any Contingent Payment of cash due pursuant to the Note
will also be deposited directly to the undersigned's account with Bank of
America or wired to the undersigned's bank account if the undersigned does not
have a Bank of America account. Upon a withdrawal of such cash from such
account, Bank of America may impose such fees as it would customarily assess
upon the withdrawal of cash from such account. The undersigned recognizes that
the amount of the repurchase price for Interests will be based on the unaudited
net asset value of the Fund, determined as of December 31, 2009, subject to an
extension of the Offer as described in Section 7. The Contingent Payment portion
of the repurchase price, if any, will be determined upon completion of the audit
of the Fund's financial statements which is anticipated to be completed not
later than 60 days after March 31, 2010, the Fund's fiscal year end, and will be
paid within ten calendar days thereafter.
All authority herein conferred or agreed to be conferred shall
survive the death or incapacity of the undersigned and the obligation of the
undersigned hereunder shall be binding on the heirs, personal representatives,
successors and assigns of the undersigned. Except as stated in Section 5 of the
Offer, this tender is irrevocable.
C-2
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC - LETTER OF TRANSMITTAL
PLEASE MAIL TO:
U.S. TRUST HEDGE FUND MANAGEMENT, INC., 225 HIGH RIDGE RD., STAMFORD, CT 06905
ATTN: CLIENT SERVICE. FOR ADDITIONAL INFORMATION: PHONE: (866) 921-7951
PLEASE NOTE THAT LETTERS OF TRANSMITTAL ARE NO LONGER BEING ACCEPTED BY FAX
TRANSMISSION, HOWEVER, THEY MAY BE SENT VIA EMAIL TO AICLIENTSERVICE@BANKOF
AMERICA.COM. PLEASE INCLUDE THE WORDS "EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS
(TI), LLC TENDER DOCUMENTS" IN THE SUBJECT LINE.
PART 1. INVESTOR DETAILS:
Name of Member: ----------------------------------------------------
Bank of America Account Number:
(where applicable) --------------------------------------------------
Social Security # or
Taxpayer Identification # :
-------------------------------------------
Telephone Number: ( )
-------------------------------------------------
Email Address for Confirmation of Receipt: -------------------------
PART 2. AMOUNT OF LIMITED LIABILITY COMPANY INTEREST IN THE FUND BEING
TENDERED:
/ / I would like to tender my entire limited liability company interest in
the Fund.
/ / I would like to tender $ of my limited liability company interest in
the Fund. (Please note, the minimum tender is $25,000 and a minimum
interest with a value of $50,000, or more must be maintained in the
Fund (the "Required Minimum Balance").)*
/ / I would like to leave $ of my limited liability company interest in the
Fund, and tender any remaining balance. (Please note, the minimum
tender is $25,000 and the Required Minimum Balance, or more must be
maintained in the Fund).*
*The undersigned understands and agrees that if the undersigned tenders
an amount that would cause the undersigned's capital account balance to
fall below the Required Minimum Balance, the Fund may reduce the amount
to be repurchased from the undersigned so that the Required Minimum
Balance is maintained.
C-3
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC - LETTER OF TRANSMITTAL
PART 3. PAYMENT.
BANK OF AMERICA ACCOUNT HOLDERS
Cash payments will be deposited to the undersigned's account at Bank of
America. The undersigned hereby represents and warrants that the
undersigned understands that, for cash payments deposited to the
undersigned's account, upon a withdrawal of such cash payment from such
account, Bank of America may impose such fees as it would customarily
assess upon the withdrawal of cash from such account.
NON-BANK OF AMERICA ACCOUNT HOLDERS
/ / PAYMENT BY WIRE:
Bank Name: _______________________________________
Bank Address: _______________________________________
Bank ABA #: _______________________________________
Account Name: _______________________________________
Account Number: _______________________________________
For Further Credit Account #: _______________________________________
For Further Credit Acct. Name: _______________________________________
PROMISSORY NOTE
The promissory note reflecting both the initial and contingent payment
portion of the repurchase price, if applicable, will be deposited into
a special custody account with PFPC for the benefit of the undersigned.
The undersigned hereby represents and warrants that the undersigned
understands that any payment of cash due pursuant to the Note will also
be deposited directly to the undersigned's account at Bank of America
or wired to the undersigned's bank account and upon a withdrawal of
such cash from a Bank of America account, Bank of America may impose
such fees as it would customarily assess upon the withdrawal of cash
from such account.
PART 4. SIGNATURE(S).
FOR INDIVIDUAL INVESTORS FOR OTHER INVESTORS:
AND JOINT TENANTS:
- ------------------------------------ --------------------------------
Signature Print Name of Investor
(SIGNATURE OF OWNER(S) EXACTLY AS
APPEARED ON SUBSCRIPTION AGREEMENT)
- ------------------------------------ --------------------------------
Print Name of Investor Signature
C-4
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC - LETTER OF TRANSMITTAL
(SIGNATURE OF OWNER(S) EXACTLY AS
APPEARED ON SUBSCRIPTION
AGREEMENT)
- ------------------------------------ ---------------------------------
Joint Tenant Signature if necessary Print Name of Signatory and Title
(SIGNATURE OF OWNER(S) EXACTLY AS
APPEARED ON SUBSCRIPTION AGREEMENT)
- ------------------------------------ --------------------------------
Print Name of Joint Tenant Co-signatory if necessary
(SIGNATURE OF OWNER(S) EXACTLY AS
APPEARED ON SUBSCRIPTION
AGREEMENT)
--------------------------------
Print Name and Title of
Co-signatory
Date:
---------------------------
C-5
Exhibit D
NOTICE OF WITHDRAWAL OF TENDER
Regarding Interests in
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC
Tendered Pursuant to the Offer
Dated October 2, 2009
---------------------------------------------------------------------
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE
AT, AND THIS NOTICE OF WITHDRAWAL MUST BE
RECEIVED BY THE FUND BY, 12:00 MIDNIGHT, EASTERN TIME, ON
OCTOBER 30, 2009, UNLESS THE OFFER IS EXTENDED.
---------------------------------------------------------------------
COMPLETE THIS NOTICE OF WITHDRAWAL AND MAIL TO:
U.S. Trust Hedge Fund
Management, Inc.
225 High Ridge Road
Stamford, CT 06905
Attn: Client Service
For additional information:
Phone: (866) 921-7951
D-1
EXCELSIOR DIRECTIONAL HEDGE FUND OF FUNDS (TI), LLC - LETTER OF TRANSMITTAL
Ladies and Gentlemen:
The undersigned wishes to withdraw the tender of its limited liability
company interest in Excelsior Directional Hedge Fund of Funds (TI), LLC (the
"Fund"), or the tender of a portion of such interests, for repurchase by the
Fund that previously was submitted by the undersigned in a Letter of Transmittal
dated _____________________.
Such tender was in the amount of:
/ / Entire limited liability company interest.
/ / $___________ of limited liability company interest.
/ / The portion of limited liability company interest in excess $
-----------
The undersigned recognizes that upon the submission on a timely basis
of this Notice of Withdrawal of Tender, properly executed, the interest in the
Fund (or portion of such interest) previously tendered will not be repurchased
by the Fund upon expiration of the tender offer described above.
SIGNATURE(S).
FOR INDIVIDUAL INVESTORS FOR OTHER INVESTORS:
AND JOINT TENANTS:
- --------------------------------------- ------------------------------------
Signature Print Name of Investor
(SIGNATURE OF OWNER(S) EXACTLY AS
APPEARED ON SUBSCRIPTION AGREEMENT)
- --------------------------------------- ------------------------------------
Print Name of Investor Signature
(SIGNATURE OF OWNER(S) EXACTLY AS
APPEARED ON SUBSCRIPTION AGREEMENT)
- -------------------------------------- ------------------------------------
Joint Tenant Signature if necessary Print Name of Signatory and Title
(SIGNATURE OF OWNER(S) EXACTLY AS
APPEARED ON SUBSCRIPTION AGREEMENT)
- -------------------------------------- ------------------------------------
Print Name of Joint Tenant Co-signatory if necessary
(SIGNATURE OF OWNER(S) EXACTLY AS
APPEARED ON SUBSCRIPTION AGREEMENT)
------------------------------------
Print Name and Title of Co-signatory
- -------------------------------------- ------------------------------------
Date:
---------------------------
D-2
EXHIBIT E
Forms of letters from the Fund
to Members in connection with acceptance of offers of tender
[THIS LETTER IS SENT IF THE MEMBER TENDERED ITS ENTIRE INTEREST IN THE FUND.]
November 9, 2009
Dear Member:
Excelsior Directional Hedge Fund of Funds (TI), LLC (the "Fund") has
received and accepted for repurchase your tender of your limited liability
company interest in the Fund ("Interest" or "Interests" as the context
requires).
Because you have tendered and the Fund has repurchased your entire
investment, you have been paid a note (the "Note") entitling you to receive an
initial payment of 95% of the repurchase price based on the unaudited net asset
value of the Fund, determined as of December 31, 2009, in accordance with the
terms of the tender offer. A cash payment in this amount will be deposited into
your account with Bank of America, N.A. or one of its affiliated banks ("Bank of
America") on January 31, 2010 or wired to your bank account on that date if you
do not have a Bank of America account, unless the valuation date of the
Interests has changed or the Fund has requested a withdrawal of its capital from
the investment funds in which it has invested and has not yet received the
proceeds of that withdrawal, in accordance with the terms of the tender offer.
The terms of the Note provide that a contingent payment representing
the balance of the repurchase price, if any, will be paid to you after the
completion of the Fund's fiscal year-end audit and is subject to fiscal year-end
audit adjustment. This amount, will be paid within ten calendar days after the
conclusion of the fiscal year-end audit, or on such earlier date as the Fund's
Board of Managers may determine, according to the terms of the tender offer and
will also be deposited into your Bank of America account or wired to your bank
account if you do not have a Bank of America account. We expect the audit to be
completed by the end of May 2010.
Should you have any questions, please feel free to contact the Fund's
adviser, U.S. Trust Hedge Fund Management, Inc. at (866) 921-7951.
Sincerely,
Excelsior Directional Hedge Fund of Funds (TI),
LLC
Enclosure
E-1
[THIS LETTER IS BEING SENT IF THE MEMBER TENDERED A PORTION OF ITS INTEREST IN
THE FUND.]
November 9, 2009
Dear Member:
Excelsior Directional Hedge Fund of Funds (TI), LLC (the "Fund") has
received and accepted for repurchase your tender of a portion of your limited
liability company interest in the Fund ("Interest" or "Interests" as the context
requires).
Because you have tendered and the Fund has repurchased a portion of
your investment, you have been paid a note (the "Note") entitling you to receive
an initial payment of 100% of the repurchase price based on the unaudited net
asset value of the Fund, determined as of December 31, 2009, in accordance with
the terms of the tender offer. A cash payment in this amount will be deposited
into your account with Bank of America, N.A. or one of its affiliated banks
("Bank of America") on January 31, 2010 or wired to your bank account on that
date if you do not have a Bank of America account, unless the valuation date of
the Interests has changed or the Fund has requested a withdrawal of its capital
from the investment funds in which it has invested and has not yet received the
proceeds of that withdrawal, in accordance with the terms of the tender offer.
You remain a member of the Fund with respect to the portion of your
Interest in the Fund that you did not tender.
Should you have any questions, please feel free to contact the Fund's
adviser, U.S. Trust Hedge Fund Management, Inc. at (866) 921-7951.
Sincerely,
Excelsior Directional Hedge Fund of Funds (TI),
LLC
Enclosure
E-2
[THIS LETTER IS BEING SENT TO THE MEMBER WITH THE INITIAL PAYMENT FOR ALL OF ITS
INTEREST WHICH WAS REPURCHASED BY THE FUND.]
January 31, 2010
Dear Member:
Enclosed is a statement showing the breakdown of your capital
withdrawal resulting from our repurchase of your interest in Excelsior
Directional Hedge Fund of Funds (TI), LLC (the "Fund").
Because you have tendered and the Fund has repurchased your entire
investment you have previously been paid a note entitling you to receive 95% of
the repurchase price based on the unaudited net asset value of the Fund,
determined as of December 31, 2009, in accordance with the terms of the tender
offer. A cash payment in this amount is being deposited into your account with
Bank of America, N.A. or one of its affiliated banks ("Bank of America") on
January 31, 2010, if you have a Bank of America account. If you do not have a
Bank of America account, the payment has been wired to your bank account.
The balance of the repurchase price, if any, will be paid to you after
the completion of the Fund's fiscal year-end audit for the year ending March 31,
2010 and is subject to year-end audit adjustment. This amount will be paid
within ten days after the conclusion of the year-end audit, or on such earlier
date as the Fund's Board of Managers may determine, according to the terms of
the tender offer. We expect the audit to be completed by the end of May 2010.
Should you have any questions, please feel free to contact the Fund's
adviser, U.S. Trust Hedge Fund Management, Inc. at (866) 921-7951.
Sincerely,
Excelsior Directional Hedge Fund of Funds (TI),
LLC
Enclosure
E-3
[THIS LETTER IS SENT TO THE MEMBER WITH THE INITIAL PAYMENT FOR THE PORTION OF
ITS INTEREST WHICH WAS REPURCHASED BY THE FUND.]
January 31, 2010
Dear Member:
Enclosed is a statement showing the breakdown of your capital
withdrawal resulting from our repurchase of your interest in Excelsior
Directional Hedge Fund of Funds (TI), LLC (the "Fund").
Because you have tendered and the Fund has repurchased a portion of
your interest, you have been paid 100% of the repurchase price based on the
estimated unaudited net asset value of the Fund, determined as of December 31,
2009, in accordance with the terms of the tender offer. A cash payment in this
amount is being deposited into your account with Bank of America, N.A. or one of
its affiliate banks ("Bank of America") on January 31, 2010, if you have a Bank
of America account. If you do not have a Bank of America account, the payment
has been wired to your bank account.
Should you have any questions, please feel free to contact the Fund's
adviser, U.S. Trust Hedge Fund Management, Inc. at (866) 921-7951.
Sincerely,
Excelsior Directional Hedge Fund of Funds (TI),
LLC
Enclosure
E-4
[THIS LETTER IS SENT TO THE MEMBER WITH THE CONTINGENT PAYMENT FOR THE INTEREST
REPURCHASED BY THE FUND.]
June 8, 2010
Dear Member:
Enclosed is a statement showing the breakdown of your capital
withdrawal resulting from our repurchase of your interest in Excelsior
Directional Hedge Fund of Funds (TI), LLC (the "Fund").
Pursuant to the terms of the tender offer, the contingent payment is
being deposited into your account with Bank of America, N.A. or one of its
affiliated banks ("Bank of America") on June 8, 2010, if you have a Bank of
America account. If you do not have a Bank of America account, the payment has
been wired to your bank account per your instructions.
Should you have any questions, please feel free to contact the Fund's
adviser, U.S. Trust Hedge Fund Management, Inc. at (866) 921-7951.
Sincerely,
Excelsior Directional Hedge Fund of Funds (TI),
LLC
Enclosure