In a climate of lower interest rates, it may be important to ensure an investment portfolio is working as hard as possible. Private Market Investments may be worth considering as they can potentially improve returns, reduce risk and increase diversification. In addition, long/longer-term thinking can add value to short-term investments.

Private Market Investments are investment opportunities that are unavailable through public markets such as stock exchanges. They enable investors to directly profit from long-term investment themes and can also provide access to specialist sectors or industries, such as Private Equity, Private Debt, Infrastructure Financing, Real Estate, Lending to Smaller Businesses, that generally are difficult to access through traditional means.

At a time when Private Market Investments are undergoing rapid development, we believe there is an unprecedented opportunity to develop new solutions that offer clients superior risk-adjusted returns.

However, Private Market Investments may have high minimum investment levels and may be complex and illiquid, so careful consideration of the options is key.

Private Equity is a widespread form of capital and a popular alternative form of investment. In the financial sector, it allows companies to grow rapidly and, in return, investors expect high yields from the investment. Investments are usually made by professional investment companies that specialize in Private Equity. 

Private Equity companies use the money collected from investors to launch so-called Private Equity funds. The capital is used to buy shares in several target companies. Financing is usually not provided by the fund alone. External investors and banks are also involved in co-financing.

Strategically, Private Equity companies strive for a blocking minority, i.e. a minority holding in the company. After a few years, when the strategic goals have been achieved and profitability increased, an exit takes place. For example, the shares are then sold to other investors, repurchased by the former owner or the company is listed in an Initial Public Offering (IPO).

 

 

Private Debt has only recently been considered an asset class in its own right, and the term covers a range of different investment styles and strategies. The term ‘Private Debt’ is typically applied to debt investments which are not financed by banks and are not issued or traded in an open market, while the word "private" refers to the investment instrument itself and not necessarily the borrower – i.e., public companies can borrow via private debt just as private companies can. Private Debt falls into a broader category termed "Alternative Debt" or "Alternative Credit" and is used interchangeably with "Direct Lending", "Private Lending" and "Private Credit".

Within the Private Debt market, investors lend to investee entities – be they corporate groups, subsidiaries or special purpose vehicles established to finance specific projects or assets – in the same way that banks lend to such entities. Private Debt investments are typically used to finance business growth, provide working capital, or fund infrastructure or real estate development.

In accordance with the philosophy of RML Advisory, we provide access to Private Asset solutions that are - unlike typical Private Asset investments - characterized by the following criteria's:

  • Better liquidity or significantly shorter investment horizons

  • Investments in Private Debt typically senior & secured with hard assets

  • Easier access for professional / qualified investors

  • Significantly lower minimum investment amounts required

  • Investment themes characterized either by sustainability, growth potential, and / or added value for the environment (circular economy)

  • Access via Private Equity fund for qualified investors (QIAIF) or via (partially) listed debt (bonds) instruments

Jörd Capital Private Equity Hemp Fund

 

Jörd Capital is a is a private equity firm, with headquarters in Irvine, California. The firms multiple managed funds, primarily focus on strategic majority and minority, controlled investments in targeted industries, throughout the United States.

The manager has a culture of performance through collaboration with elite partners in responsible investments.

The Managing Members and the Investment Advisory Group have decades of combined experience in real estate development, investments, commercial lending, property and business operations and management, and private investment fund management. The Fund Manager’s primary objective, within a prudent investment approach, is to achieve superior risk-adjusted returns for its investors in each of its subsidiary funds.

Jörd Capital Hemp fund is a private equity fund focused on identifying and investing in opportunities within the US hemp market.

The firm has a two-pronged approach to its investment strategy:

(1) supporting real estate strategically situated in primary and secondary markets along with equity investments in licensed where required hemp businesses and,

(2) providing debt to projects which are minimally leveraged.

The firm collaborates with strategic partners including: lenders, investors, developers, and brokers to create opportunity and ensure the resources for both short term, and long term success.

Investment Objectives

Jörd Capital is focused on designing and managing a diverse portfolio with a total return (growth and income) profile.

 

KEY POINTS

01

To invest in the growth of the American Hemp industry (this became legalised in the 50 U.S. states in 2018).  Hemp is now like all other agricultural commodities from a legal perspective.

 

The vast majority of hemp grown in the U.S. is grown for CBD (Cannabidiol ). The Hemp Business Journal estimates CBD market will reach $2.1bn in sales by 2020. Research & Markets estimate industrial hemp will reach sales of $10.6bn by 2025 & will expand at a CAGR of 14% during the period. CBD market will likely grow 40x it’s current size by 2022. Increasing demand for CBD will increase the demand for more Hemp.

02

 

Preserve and return investors’ capital contributions. Realize capital appreciation / growth in the value of the fund’s investments.

 

03

 

Monetize legalized hemp operations by strategically investing in real estate and licensed operators, who can perform on an elite level.​ Average Deal Size: $5 million-$10 million levered. Investment can be qualified as an infrastructure/agricultural commodities play.

04

 

For investors outside the US (including Europe) an Irish domiciled Private Equity Fund will be launched. Fund is investible via 2 different share classes:

  • Class A shares: anticipated preferred return 9 % p.a. + cash flow waterfall distribution (Total project level IRR: 15 % +); investments in hard assets (equipment and or real estate). Investors in Class A shares also have opportunity through the cash flow waterfall to reap significant returns above the 9% preferred return threshold from net revenue generated by the genetics and/or hemp processing business or from the appreciation of the real estate (land, buildings, etc.). 

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  • Class B shares: anticipated preferred return 9 % p.a. only (no participation in cash flow waterfall distribution); investments in secured short-term or bridge debt investments.

 

Investment Hold Period: 3-5 years.

Minimum investment: US$, EUR 100,000

For more information and for detailed project information packages please contact us.

Altair Secured Renewable Energy Bonds 

 

The London based manager has structured and fundraised in excess of £50m worth of renewable energy projects both in the UK and EU over the past five years. The manager also has significant experience in sourcing and managing a wide variety of investment opportunities outside of the renewable energy sector (environmental sustainability projects).

The manager aims to generate stable and secure returns for the stakeholders by investing in UK and EU-based renewable energy power production. Initial positions in biomass and biogas plants are intended to be supplemented with diversified investments in other types of energy projects including tidal, solar and wind.

KEY POINTS

01

Bond maturity: 31.12.2023; Fixed Coupon 12 % p.a. paid semi-annually.

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02

Political support initially boosted the attraction of renewables, but technological progress in recent years has also dramatically improved the economics.

03

Stable, index-linked revenues in part guaranteed by the governments. Asset-backed investment minimises risk of loss to investors. Long-term contracts provide revenue and fuel security.

04

Ethical investment in seeking to generate energy from renewable sources. Attractive compensation compared to the investment risk involved. Renewables theme has great potential, particularly for project developers.

Minimum investment: EUR, US$, GBP 10,000​

For more information please contact us.

ReOIL Tyre Recycling - Pyrolysis

 

ReOil has the only continuous commercial operational pyrolysis plant in Europe with a throughput of up to 20,000 ton of tires per annum producing a gate fee for the tires, Pyrolysis Oil, Recycled Carbon Black (rCB) and Steel.

This process is continuous (rather than a batch process) with a potential uptime of over 93% per annum. The 20,000 ton plant has two production lines which enables maintenance to be carried out whilst keeping production year round at over 7800 hours per annum.

The proceeds of the raise will be used to upgrade the plant, providing significantly enhanced profitability in Gate Fees, Oil Sales and Pelletised Carbon Black.

KEY POINTS

01

  • Bond matures after 18 months from issue date (Oct. 10, 2019).

  • Fixed Coupon 10 % p.a., paid quarterly.

  • Senior & Secured Debt.

  • Issuance in EUR or GBP

02

  • Listing: Frankfurt/ GEM Ireland

  • The bonds are issued under an established institutional wholesale bond programme and are acceptable assets under the Eligible Assets Directive, as well as transferable securities under UCITS rules.

  • ISCC certified, ISO14,001, ISO9,001; audited by Dekra (largest and one of the world's leading audit firms).

03

  • REOil has full ownership of all its IP and operating systems.

  • Over 20,500 hours of running time across the kilns.

  • A team of 38 people skilled in the buildout of the plant, operation, service and maintenance of a continuously running pyrolysis plant.

  • A clear plant upgrade structure with 4 key plant upgrades to significantly enhance the plant’s earning ability.

04

  • Products being sold into the market which are recognised for their sustainability by investment grade counterparties purchasing the recycled commodities produced, adding to the circular environmental economy.

  • An EPC wrap for the upgrades and future plant buildout is supplied by one of the top sustainable companies in the world to produce a guaranteed wrap for the build out of future plants.

  • The plant is the most advanced continuous commercial technology for tire recycling in the world built from high quality European components, European controls and operating systems.

  • Unlike other players in the market that make claims, the plant is not a test plant, nor a development plant, but a full- scale commercially operating entity that has been built and developed over the past 4 years.

  • The company has not only built the most advanced tire recycling plant in the world from high quality European components and European PLC systems – it has the necessary environmental certificates and complies with European environmental standards.

Minimum investment: EUR, GBP 100,000

For more information (Term Sheets, Memorandum, etc.) please contact us.​

Nao Group - Commercial Property Development in the Coworking and Shared Office Space Market

 

The Nao Group is a commercial property developer striving to be at the forefront of the rapidly evolving coworking and shared office space market. Utilising the senior management team’s vast experience in the property sector and solid operational intelligence, the group has set a course to deliver a coworking experience that today’s entrepreneurs and SMEs will truly embrace.

Since launching in 2016, the company has successfully launched four offices and now has over 500 members across all locations. Nao Group has a strategy to expand its portfolio to 30 properties in the next 7 years across the UK, Europe, and APAC region, which will enable the company to achieve an estimated valuation in excess of Euro 600 million.

Funds will be used for business expansion in the UK (Stratford), Europe (Berlin) & Asia.

KEY POINTS

01

  • Three issuances available (US$,EUR and GBP)

  • Fixed Coupons (US$: 8.25 % p.a.; EUR: 7 % p.a.; GBP 8.25 % p.a.), paid quarterly in cash

  • High Yield Debt Instrument

  • 5 years term with a three-year redemption offering to accommodate the shorter investment strategy at zero costs

02

  • Listing: GEM Ireland

  • Asset-Backed & Secured against Nao Group’s property assets (tangible assets)

  • Eligibility: SIPP, ISA, UCITS, Portfolio Bonds & Investment Platforms

  • Liquidity: Daily

  • Minimum investment of US$, EUR & GBP 10,000, with no maximum limit

03

  • Coworking is the fastest growing sub-sector of the real estate market and has grown by over 200% globally in the past five years (JLL Global Market Perspective report).

  • London remains the global capital for coworking spaces, ahead of New York. (Cushman & Wakefield, Coworking 2018).

  • Cushman & Wakefield’s most recent sector report on APAC is forecasting a 40% growth in coworking memberships, well abovethe global average.

04

  • Currently 4 Buildings in the portfolio:

  • Manor House: Manor House opened in 2017 and was the company’s first London site. It is situated at the centre
    of the Borough of Haringey, which has been billed as London’s Next Growth Opportunity, and is home to the city’s largest housing zone with GBP 100M infrastructure investment.

  • Colindale: Situated in the London Borough of Barnet, just 25 mins from the centre of London, Colindale is the most recent Areaworks coworking space in the portfolio. It has opend its doors to new members in late 2018.

  • Farringdon: Located in the heart of Hatton Garden, the Farringdon building consists of 7 floors and with a rooftop terrace planned, it will be the largest and most exciting of Nao Group’s properties to date.

  • Hackney: Opened in 2018; the Hackney building is situated in London’s ‘Tech City’ and surrounded by the creative scenes of Hoxton and Shoreditch. Hackney is a fully owned property, forming part of Nao Group’s freehold property portfolio.

For more information (Term Sheets, Memorandum, Various independent market research, etc.) please contact us.​

Symtomax Corporate Loan Note - Cultivation and Production of Medical Cannabis

 

Symtomax is a licensed medical cannabis producer, with the largest outdoor cultivation site in Europe. The Portugal based cultivation facility site has a total of 105 Hectares. 95,000 m2 will be outdoor and 10,000 m2 will be indoor grow areas located in the Beja region of Portugal, focusing on providing safe and effective treatment options for worldwide pharmaceutical industries. Symtomax combines innovative horticultural techniques with an experienced team of award-winning growers, producing unique organic medical cannabis.

The loan note is to accelerate the development of the medical cannabis facility. The cultivation land has been approved by the Portuguese regulatory body INFARMED for the cultivation of full spectrum medical cannabis.

KEY POINTS

01

  • It is estimated that European countries combine to become the world's largest regulated medical cannabis market over the next five years

  • Products grown and processed at 95 hectare European medical facility (first year's harvest 45 hectars out of the 95 hectar side)

  • Capacity: 700,000 kgs per year

  • Largest licensed facility of its kind in Europe

  • Only a select of few countries in Europe has the right climate or have large enough areas of agricultural land to meet the demand for open-air cannabis cultivators

  • Portugal is using this to their advantage, having one of the most favourable microclimatic conditions for cannabis cultivation together with low labour costs, make this a truly ideal location 

02

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  • Market Leading double digit returns of over an investment period of two years (24 month maturity)

  • All investments are Asset Backed (Land, Property and License)

  • Security is offered by a purchase contract between Symtomax SPV Limited and Symtomax for the cultivation land, constructed facility and equipment

  • Symtomax holds an INFARMED (Portuguese licensing authority) approved license for the cultivation and production of medical cannabis

03

​​

  • Huge economic growth potential for this market

  • Board of directors includes leading medical professionals

04

 

  • ​Interest of 30 % return over a period of 24 months

  • Return year 1: 12 %

  • Return year 2: 18 %

  • Unlisted, privately placed, not traded

Minimum investment: EUR, US$, GBP 25,000

For more information please contact us.​

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