International Funding Program
Structured Finance Up to 100% Construction / Development Financing
Funding Amounts Considered:
$40,000,000 Minimum; up to $800,000,000
Funding Structure:
Equity + Profit Split
Funding Types Considered:
Acquisition / Refinance / Construction – Development
US or Stable International Locations – all industries, especially energy and mining projects
Maximum Loan to Cost:
Up to 100%
Structure: this is an equity based structure. Investors receive repayment from the structure + equity in the project + profit splits to be determined
Investment Purpose(s):
Qualified income producing projects and other acceptable business purposes, including construction / development or acquisition.
The Underwriter works directly with a large, long established Financier and national banks to provide this financing program. This private money funding facility was recently established for the development of top quality A&D or income producing properties which will create new jobs and improve people’s quality-of-life. Projects with strong humanitarian & community development agendas are especially valued and highly considered for funding.
STRUCTURE:
This funding vehicle is supported by Senior Life Settlement Policies, life insurance policies on individuals who have agreed to allow investors to acquire the rights to their insurance policies. Numerous such policies have been acquired and committed to serving as the value basis for this structured finance program.
The structure basically (and simply described) works like this:
· A new “Special Purpose Vehicle” (SPV) is created.
· Following initial due diligence and acceptance, the project owners commit initial funds to the SPV, to be used to set up the SPV, place initial deposit on the portfolio of insurance policies, and perform appropriate due diligence on the project. Most of the expenses are legal fees and deposits on the portfolio. All expenses and the entire structure is revealed to the project owners prior to any commitment of funds.
· At the proper time, the project to be funded commits 25% of the ownership in the project, plus a percentage of their profits for up to ten years to the SPV.
· The SPV creates a prospectus, hirers Market Makers to sell the prospectus to investors and acquires investments for the SPV.
· The SPV acquires a select portfolio of “Senior Life Settlement” policies (see basic information about SLS policies here - http://www.thevoiceoftheindustry.com/).
It is a well established fact that a well chosen and well managed portfolio of these policies can pay a significant return on investment. This investment and the returns that it pays play a critical role in this structure. The team that structures this and puts it all together have structured numerous portfolios so far and all of them have proven successful.
· The portfolio is structured so that it will repay the principle investment over the period of ten years plus a guaranteed 10% premium. Thus, the investors are assured of return of principle in ten years, plus a 10% premium, plus any additional return from the success of the project.
· And the Project gets funded – through an equity investment. The project is also required to pay a pre-determined percentage of their net profits for ten years. That percentage is generally around 10%, it varies by project.
· The SPV does not play an active role in the management of the company but has pre-negotiated review and audit rights.
COST TO PLAY:
Wouldn’t it be great if Goldilocks existed? If we lived in a perfect world, a good project would get funded just because it’s such a good project. If we buy this and sell it for that, we will make tons of money – so investors should be willing to invest without me having to pay any costs. What a great fairy tale that would be.
In truth, “it takes money to make money”. This program has costs and no one is willing to pay them up front unless YOU the project owner make a significant investment in the costs inherent with raising the funds. You do not need to cover the entire cost, and you don’t pay a dime – until you have all the assurances, all the documentation, and all the “feel good” that you need.
In order to be accepted into the program, you will need to show “proof of funds” and that you have available the money outlined below. Yes, a significant outlay of funds is required to set up the structure, create the prospectus, structure the servicing of the policies, etc. You will also be required to pay only half of the total structuring requirement up front, the second half to be paid upon completion of the SPV and the prospectus.
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Project Funding Amount
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Total Fees Due (½Due @ Start ½ Due @ Completion of SPV)
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Minimum of $40,000,000
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$250,000
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From $40,000,000 to $50,000,000
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$325,000
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From $50,000,000 to $65,000,000
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$475,000
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From $65,000,000 to $100,000,000
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$550,000
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From $100,000,000 to $400,000,000
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$1,000,000
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From $400,000,000 to $800,000,000
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$2,000,000
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ASSURANCES:
This is a well established funding mechanism. The team that acts as underwriters and coordinators has successfully completed several of these structures recently. There will be full and complete disclosure – at the appropriate time. We are seeking up to five companies or projects to help through this process in 2012. This can be a quick process – 90 days or so if all parties cooperate and move with deliberate speed.
WHAT WE DO:
If you choose to participate in this program and your project is accepted for funding, Intelligent Funding will act as an advisor to your company and represent you in initial negotiations. We will review all material before submission and suggest improvements for it to be better considered. We will also assist you in preparing for the Special Purpose Vehicle and the coming investment.
Once you reach a point in negotiations with the Underwriters and/or investors where we are no longer needed, we step out and let the transaction happen. For these services, we are rewarded with a total of 2% of the monies invested in the project. Before your project is submitted for initial consideration, we will enter into a simple agreement that outlines Intelligent Funding’s role.
APLYING & QUALIFYING:
Interested companies must submit an initial application/qualification form. If this initial application is approved for consideration, the project submits a full business plan with initial supporting information, along with a completed NCND Agreement and proof of available funds (which may take several forms but is generally a bank statement with critical information like account numbers removed). During this process and upon submitting the above information you will have several conversations with the underwriters and the team that will be handling the process. This Is not a blind process. Once you have been accepted and approved for participation (and prior to spending any money) you will be totally informed and aware of the entire process.
To be initially considered for this program please download this MS Word file, complete it and e-mail it back to us at Info@intelligentfunding.com. Please also call for initial consultation concerning this program.
