Pilot
A structure that avoids any form of financial license will be sought for the pilot in order to minimize the cost, and focus our efforts on understanding the core product, rather than trying to meet certain regulations.
Companies can seek unlimited investment from sophisticated investors - A “sophisticated investor” is defined as a person who has net assets of at least $2.5 million or has a gross income of at least $250,000 per annum for the last two financial years.
The pilot will be a small short duration investment that aims for the following outcomes:
- impact: improve cashflow of ISA providers to enable more loans sooner
- learning: validate modelling, FX strategy, assumptions, service providers, professional advice
To restrict the lifespan of the fund only ISAs with 36 payments (3 years, TBD) will be acquired.
We are considering two classes of shareholders:
- preferred: investors requiring market yields (~8%)
- Payments would be made preferrentially to preferred investors up to a minimum yeild, from which point other investors would paid the majority of yeild.
- Lower risk, lower upside potential.
- Target investors
- PAF/PuAF managers requiring market returns for funds under management
- supporter: patient and values aligned investors that are more risk tolerant
- Base scenario modelling would target yeild being slightly higher for supporters. Any over performance would see substanital upside for supporters
- Target investors
- Seed funders
- PAF/PuAF interest free loans
- PAF/PuAF gifts
Fee structure (covering costs to execution and management):
- X% of capital raised
- 20% performance fee for payments beyond X% yield