[slide 1]
PLR Exhibit C: Step Transaction Diagrams
Private Letter Ruling Request — Exhibit C
Taxpayer: Solara Digital Infrastructure LP (EIN 82-4917366)
Filed by: Solara Digital Infrastructure GP LLC (EIN 82-4917365)
Prepared by: Calderwood & Harkness LLP (Engagement No. 20250527-SDILP-PLR)
Submission target: August 15, 2025 — IRS CC:INTL, 1111 Constitution Avenue NW, Washington, DC 20224
[slide 2]
Five-Step Reorganization Roadmap
Step 1 — Formation of new Delaware and Cayman entities (September 15, 2025)
Step 2 — Fund IV-A Cayman contributes portfolio assets to Master Fund (October 1, 2025)
Step 3 — Fund IV-B Lux contributes portfolio assets to Master Fund (October 15, 2025)
Step 4 — Fund V-A Cayman and Fund V-B Lux contribute portfolio assets (November 1, 2025)
Step 5 — Dissolution of Legacy Offshore Vehicles; LP migration to feeders (December 1, 2025)
Aggregate: $7.75B FMV / $6.03B basis / $1.72B built-in gain / $1.34B liabilities assumed
[slide 3]
Step 1 — Formation of New Entities
Form Solara Consolidated Master Fund GP LLC (Delaware LLC)
Form Solara Consolidated Master Fund LP (Delaware LP)
Form Solara International Feeder (Cayman) LP
Form Solara Tax-Exempt Feeder (Cayman) LP
File Form 8832 elections — each new entity classified as a partnership
Delaware agent: Capitol Registered Agents Inc.; Cayman: Harborstone Corporate Services Ltd.
[slide 4]
Step 2 — Fund IV-A Cayman Contribution
Contributor: Solara Digital Partners Fund IV-A (Cayman) LP (EIN 98-6241503; CIMA MF-72491)
Contributee: Solara Consolidated Master Fund LP
Assets: FMV $2.31B / basis $1.62B / built-in gain $690M
Includes 100% of Thorngate Fiber Networks LP ($670M FMV / $490M basis) and 60% of NovaBright Data Systems Inc. ($890M FMV / $520M basis)
Consideration: Master Fund LP limited partnership interest
Authority: § 721(a) nonrecognition; § 723 carryover basis; § 1223(2) holding period tacking
[slide 5]
Step 3 — Fund IV-B Luxembourg Contribution
Contributor: Solara Digital Partners Fund IV-B (Luxembourg) SCSp (EIN 98-6241571; RCS B 248193)
Contributee: Solara Consolidated Master Fund LP
Assets: FMV €1.07B/$1.16B / basis €782M/$844.6M / built-in gain €288M/$311M (at 1.08 EUR/USD)
Includes 100% of Crestline Cloud Solutions LLC (€340M/$367M FMV; €195M/$211M basis)
Authority: § 721(a) nonrecognition; § 367 inapplicable (partnership-to-partnership)
No Luxembourg capital gains expected per Article 3(2) of the Luxembourg law of July 12, 2013
[slide 6]
Step 4 — Fund V Offshore Contributions
Fund V-A Cayman (EIN 98-7891234; CIMA MF-89103) — FMV $2.89B / basis $2.34B / BIG $550M
Fund V-B Luxembourg (EIN 98-7891267; RCS B 271056) — FMV €1.29B/$1.39B / basis €1.14B/$1.23B / BIG €150M/$162M
Contributee: Solara Consolidated Master Fund LP
Includes 55% of Veridian Edge Computing Corp. ($1.12B FMV / $780M basis) and 100% of Helix SaaS Holdings Ltd. ($445M FMV / $310M basis)
Consideration: Master Fund LP limited partnership interests to each contributor
Same § 721(a) treatment as Steps 2 and 3; § 367 inapplicable
[slide 7]
Step 5 — Dissolution and LP Migration
Dissolving entities: Fund IV-A Cayman, Fund IV-B Lux, Fund V-A Cayman, Fund V-B Lux
Each Legacy Offshore Vehicle distributes its Master Fund LP interest to its LPs
Non-U.S. LPs (e.g., Nordhaven SWF, Kestrel Pacific) roll into Solara International Feeder (Cayman) LP
U.S. tax-exempt LPs (e.g., Pinnacle SERS, Grandview Endowment) roll into Solara Tax-Exempt Feeder (Cayman) LP
Authority: § 731(a) nonrecognition; § 731(c) marketable-securities exception inapplicable
CIMA deregistration (MF-72491, MF-89103) and Luxembourg CSSF wind-down notifications initiated
[slide 8]
Post-Reorganization Consolidated Structure
Master Fund at center: Solara Consolidated Master Fund LP (Delaware; partnership for U.S. tax)
Governed by Solara Consolidated Master Fund GP LLC
Two Cayman feeders: Int'l Feeder (non-U.S. investors) and TE Feeder (U.S. tax-exempt investors)
Fund IV LP and Fund V LP co-invest directly alongside Master Fund
Four legacy offshore vehicles dissolved (Fund IV-A/IV-B/V-A/V-B)
Anticipated annual savings: $3.8M in duplicative offshore admin/audit/regulatory fees
[slide 9]
IRC Provisions Mapped to Each Step
Step 1: Treas. Reg. § 301.7701-3 (entity classification / Form 8832)
Steps 2–4: § 721(a) nonrecognition; § 721(b) analyzed (n/a); § 723 carryover basis; § 1223(2) holding period; § 367 (n/a); § 1446 (no withholding)
Steps 2–5: § 704(c) built-in gain tracking; remedial method continues under Treas. Reg. § 1.704-3(d)
Steps 2–5: § 752 liability shifts; netting under Treas. Reg. § 1.752-1(f); $1.34B aggregate liabilities
Step 5: § 731(a) nonrecognition distribution; § 731(c) marketable securities exception inapplicable
Cross-cutting: § 897 / FIRPTA analysis (NovaBright, Thorngate); Treas. Reg. § 1.701-2 anti-abuse
[slide 10]
Legend and Reading Notes
Solid arrow = asset contribution or distribution
Dashed arrow = equity issuance (partnership interest)
Blue = Delaware entity; Green = Cayman entity; Gold = Luxembourg entity
Dotted-outline boxes = entities to be formed (Step 1) or dissolved (Step 5)
All EUR figures converted at 1.08 EUR/USD applied uniformly
Illustrative only; controlling detail in PLR narrative and Exhibits D and E