Arquitos Capital: Liquidia Buyout & Income SPV

(MENAFN- ValueWalk) I wanted to share this time-sensitive opportunity now about the launch of a dedicated co-investment vehicle: the Liquidia Buyout and Income SPV.

Read more hedge fund letters here

Also see: Liquidia Court Ruling, Arquitos Capital Down Over 50% In Q3 [Letter]

Arquitos Capital has maintained an active position in Liquidia Corporation (NASDAQ:LQDA) since 2022. Following the resolution of the long-standing patent litigation on October 13, 2026, the company's overhang has cleared, while commercial execution of Yutrepia continues to accelerate, reaching $223M in revenue in Q3 2026. With the stock trading around $34 per share (down from an August high of $93.61), we believe Liquidia is positioned as an attractive acquisition candidate.

The SPV will have a three-year max term, a 0% management fee, and a 10% performance fee payable only upon a distribution or liquidity event.

Strategy Overview

The SPV will deploy a bifurcated 50/50 capital allocation model designed to generate yield while capturing leveraged upside:

50% Upside Sleeve (Long-Dated Calls): Structured to deliver asymmetric, multi-bagger returns upon a corporate buyout or substantial equity re-rating. 50% Income Sleeve (Volatility-Harvesting Overlay): Designed to monetize elevated implied volatility to generate quarterly target cash distributions (with a reinvestment option) and cushion portfolio downside if an exit takes longer to materialize.

Warm regards,

Steven L. Kiel

President and Chief Investment Officer

Arquitos Capital Management

Email: [email protected]

Website:

Further Information Access the Confidential Investment Overview

Due to the proprietary derivative overlay architecture and regulatory requirements, detailed materials are confidential.

Prospective investors who meet the Qualified Purchaser standard can sign our electronic NDA using the secure link below to immediately access the Confidential Investment Overview memo and scenario return analysis:

[REDACTED]

If you have any questions after reviewing the materials or would like to schedule a call to discuss the structure, please reply directly to this email.

Warm regards,

Steven

Editors note: Interested investors can contact Hedge Fund Alpha at [email protected] to request access or contact Arquitos directly. VALUEWALK LLC dba Hedge Fund Alpha has no affiliation with Steven Kiel, Arquitos Capital nor any affiliated entities. HedgeFundAlpha and is not making money nor any form of compensation from this post or any capital raised, nor leads provided etc, Nor is this advertising, nor advising on taking part. Besides no compensation, there is no investment or professional advice being offered. Please see our full disclaimer for more details.

Hedge Fund Alpha frequently posts opportunities that we find interesting, and we have profiled Steven in HiddenValueStocks nearly ten years ago. What is interesting to note is that even after a really brutal Q3, his annualized returns are still pretty good, as you can see in the Q3 letter linked above.

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