Investor strategy call, October 18th 2021
Speaker1: [00:00:24] Hello, Madhur. Hey, now, how are you doing well?
Speaker2: [00:00:29] How’s it going today?
Speaker1: [00:00:31] Oh, pretty good, I was just working on the the UFC document.
Speaker2: [00:00:37] Yes. Fantastic. Yeah. And you’re doing you’re doing really great. And you’re really helping us out. So, OK, we’re just getting set up here for the call. We just got the screen share going. All right. Yep. We’re back with another Q&A. Yeah, I see some familiar faces here, so the way we do it, simply put, just ping on the on the chat. If you have a particular question or or raise your hand and then we’ll bring you up, walk through whatever, whether it’s a transaction or anything in going through, and then see if we can help.
Speaker3: [00:02:03] Hello, Eddie. On mute.
Speaker2: [00:02:13] Yep, no worries. Yup. How are you doing today?
Speaker3: [00:02:19] Not bad, but not bad. Yeah, I sent you an email earlier today. Not sure if you got it.
Speaker2: [00:02:30] Yes, I did. I did, and that was in regards to the PR, and yeah, we got it in the Slack channel. I was just on a bunch of stuff, but yeah, basically we do have. Is it OK if I can tell you right now because I have it right in front of me?
Speaker3: [00:02:48] Yeah, yeah, sure, sure, sure, absolutely.
Speaker2: [00:02:50] All right, cool. Just making sure it’s not confidential. Yeah. So the. Yeah, and then we can put it in and then what we’ll do, because sometimes these press releases are very in the very. You know, they’re very like sometimes when you put opinions there, a bit resistance, and so what we’ll do will try putting it exactly like that then. And then if they say because they may say, Oh, you know, you’re not allowed to provide opinions, then we can just talk more about the discounts. So that’s the only thing that we may get, but then we’ll do it with that and then go from there. But in regards to it? Yeah. But in in regards to the to the I think the PowerPoint you mentioned doesn’t go straight to subscription agreements after you get stir. Yeah.
Speaker3: [00:03:37] Yeah, that’s that’s the plan. Okay. Oh. The LPA substitution agreement or law that will be there? I could probably share that with you before making it go live, right?
Speaker2: [00:03:55] Yeah. No, please do, please do, because let’s take a look. If the subscription agreement is right there, just anything that they can use to get the two, honestly, just sign a document and then I would also what I would do, I would also collect. So I’ll do two things. I’ll collect their email and then I get there and then I’ll get. I’ll show them the subscription agreement because if you get their email, then you can get back in touch with them. Yeah. And then, yeah, yeah, that’s what I would do.
Speaker3: [00:04:25] Ok, I appreciate that, because this guy I said with with a website, just got funding for his startup, so it seems has been very difficult to get hold of him to even do basic stuff. All right. So that’s why I want to go the route of using the SharePoint.
Speaker2: [00:04:47] Yeah. Honestly, like sometimes like the less is more like the the fewer things like, the fewer things of resistance, the better the CSK deal will probably get on here as well. Feel free to come on here. But yeah, if you could just get them on a subscription agreement and get their email, they agreed that they’re an investor. Then they’ll be great.
Speaker4: [00:05:10] And it was, yeah, I was going to say is you want to stay away as far as possible from SharePoint, one like one as fast as you can? Ok. And so, you know, and I’m talking from, you know, I used to roll out of SharePoint before it even was in the cloud. But the challenge you’re going to have is every time there is going to be an integration request with a fund administration or a third party, you have to have a developer to handle that for you. And that’s going to be very costly. You may not see that right now. But in my opinion, you’re better off leveraging juniper or strata, or if you’re if you’re if you’re cost conscious, I would say, use a folio, a folio. A folio is very, very affordable because we have a fixed price monthly and then they have different level from 20 million, 50 million, 100 million, and it’s not even a thousand dollars a month for that. So, so, so so so you may want to look at that because the integration and the integration is going to be is going to you the two things on two fronts. One is going to allow you to be investor friendly and very easy to to to to navigate and then to. It’s going to be institutional capital friendly as well because every institution or family office who are leveraging or bringing money or or grabbing your subscription, they are expecting that they are expecting your your workflow or your Portal investor portal to be as flush as other through a capital that you’re interfacing with.
Speaker4: [00:07:09] So, you know, it’s funny. You mention that because, you know, we just went through that and we’re selecting things and we’re getting ready to launch our portal. And there are a lot of them out there. But I think if you really want to sift costs, I believe it’s called. So it’s called ever invest if you go to invest, invest. Easy, easy tsd you have a right, they have the right legal solution. I would rather work with them first and indeed prevent all that automation for you. This download the offer memorandum. The presentation will read the integration of the API. It’s all in one. Just buy or subscribe to the white label and then they handle all the information, all the integration, and we’ll focus on what you need to be focusing on, which is operating investor relations and then campaigning on your phone, but not integration. That’s a very, very slippery slope when you get to invest investor portal development and integration build out. I would say run as fast as you can away from SharePoint.
Speaker3: [00:08:18] I really appreciate that. I was actually thinking, you know, I was just thinking, OK, maybe when we close, we’ll use that for investor reports and investor relations, but I, yeah, I completely agree with you.
Speaker4: [00:08:33] Yeah, I mean, Djenepo is great. I like the platform. I like what they do. There is some comes there. We’re not going to get into that. Obviously, we have to talk to them to see what what fits your best. But the basic of what they do is very solid. They they are solid. And then you have a folio, a folio. I think up to 50 or 100 million is the same monthly fee. There is no additional fees the way they set up their process. But I folio and to compete, whereas a folio allows you and provide, I guess, a better accounting and key ones versus what the folio does. So. Okay, so, so. But but you know, if you are asking me, depending on what you want to do and what you want to land, I will tell you my preference is first, it is a strata and I’ve actually tried out that book recently. So nine months ago, so it’s called out mademoiselle. It’s owned by by a Luxembourg firm. But that’s that would be that would be where I where I would focus my. Uh, you know, my attention more, if I were you and then definitely looking to invest because you’re going to see things that would be somewhat more, more catered to what you’re trying to do in terms of hands off investor portal automation.
Speaker3: [00:10:06] Yeah. Okay. Yeah. Thank you. I appreciate that.
Speaker2: [00:10:10] Thanks. Thanks. Good. Nice. Yeah. Because I never know that because I don’t really have experience using the SharePoint. I’m just more in the side of, you know, getting the investors in. And it’s like, how did you know? But actually managing the back end? Because Abdullah, what are your thoughts on, you know, something like Clickfunnels or something like that versus the fully managed? Yeah. What are your thoughts?
Speaker4: [00:10:33] Yeah, no. Yeah, no. Clickfunnels is great. Clickfunnels is great for bringing in. I’m driving right now, so I can’t really show. But yeah, but but. But the Clickfunnels is great for landing pages and then for a B testing, right? You can do have different testing and then in Clickfunnels also allows you to carry out your campaign in a as a journey, meaning that you can have different drips at different touches. But also you can segregate the investors that that believe that you’re getting in. So maybe someone is a qualified is a qualified purchaser or actually an investor. Maybe it’s an institution, or maybe it’s a non activated investor, and then you create buckets with funnels. You can create buckets and then each of those guys as you ask them to no more than two or three questions as they go through to that first. To that first 10 to 30 seconds of reading your landing page or a portal. And that’s all that does. And once once you get that whatever that bucket is, it drug that information into your CRM. And those those leads get tagged and from the back end, the administration or the investor portal you have on the back end, you could use something as as chat form. For example, chats from can be used much easier than can SharePoint to actually grab the information. And then from there you send different, you send them into different drip campaign. Yeah. And then go from there. But the important is important is that when they lead into your CRM, that you know, if they are acquitted, if the equity did went away, you won the services.
Speaker2: [00:12:34] You going a bit off there, the audio to. Yep, I think you’re back.
Speaker5: [00:12:44] One is yeah, yeah. One there are two things that must happen if you are here in the U.S. as far as those accredited investment leads are getting online or one is special, capture that information. It goes into CRM before they get their subscription agreement and even they can have the VPN. But before they get this agreement to start signing and agreeing to to purchasing shares of an opportunity, you need to do your card. You need to do your KYC, your your customer. Yeah, and then you need to do your AML, which is anti-money laundering. And these these engines need to happen simultaneously if they all happen independently, and it’s very convoluted. You can forget about those investors because they get confused. They are going to invest the money. And so and so the fund, the third party, like Juniper, does a very good job integrating with what’s in your CRM bucket, wherever it comes from triaging that and then they handle that email and then let that KYC process. The what’s the other one investor events does the same thing, but invest because you can white label it, you can own it. You have more control over when you do that, how you do that, which is the same thing everywhere. But the other difference is it allows you to do the same thing, but you’re just the admin doing it. So so it’s a it’s a bit more cost effective that way. And then and the other businesses we’ve talked to, we’re looking at they can handle all that process, but which is great. But they even go a step further because now in those touch points or touches as they do the camps that they do the KYC as they do the AML, they also create the story based on those avatar. Hmm. Ok.
Speaker2: [00:14:50] So, Abdul, so what are your thoughts on? Because the one that I familiar with is we use DocuSign for the email and for the subscription. What are your thoughts on? And having Typekit.
Speaker5: [00:15:05] Posts on which one?
Speaker2: [00:15:07] Yeah. Just cut off. So what are your thoughts on DocuSign for AML, KYC and subscription agreement?
Speaker5: [00:15:19] No, I think first.
Speaker3: [00:15:23] Uh, yeah, that’s sort of an agreement.
Speaker5: [00:15:26] And, uh, well, yeah, I should be coming up in one second. I think this area is dead usually. No. Ok. How about nothing, you guys? Yep. Ok, good. Yeah. So what I was saying is, I think for a subscription agreement, you can use, you can use DocuSign as far as signature and everything else you capture. You capture. You capture those. That’s fine. I mean, I’ve used those. I’ve used DocuSign when I do syndication all the time. And then for EML, DocuSign use third party plugins that can help you with email. I’ve never used them. I don’t know how that works, but I do know they have plugins that you can buy a subscription or additional to the email because Dark Side, Dark Side does not do email and also DocuSign do not do KYC. Docusign does the capturing of the information you still need to validate. If the CC comes to your door tomorrow, it should be the audit trail. How you validate that capturing and signing is not KYC, it’s just documenting. Right? But just validated so. So again, if you’re raising a million dollars, they won’t care. But if you’re raising thirty million dollars or more? Yes, they do care.
Speaker2: [00:16:52] Exactly. So because for, you know, a little shop here in Canada, what we did, we had we had a, you know, a lawyer set up. The AML is like a form. It’s just like a document of saying, Oh, what’s your fear that your risk tolerance or whatever on a KYC and AML? And then we got them to upload their driver’s license and then we did it. And then the Canadian, the Ontario Securities Commission, they audited that that was OK because I think it’s because like we use that as a form. But then what you’re saying is, like, if there’s no form, then you have to find another way essentially, right?
Speaker5: [00:17:27] So yeah, so so so what you said, what you said, exactly what you said exactly, actually. And this is what I was saying. Hey, running away from SharePoint, what you just said? Exactly. With you explain there you can use that form to do exactly that. And that would, I think, you know, and I think that based on what I’ve seen and can that we’ve done for for syndication, that’s exactly how we did it. There is no issue with that. There is no I don’t think because you’re within the framework, you’re within parameters of of of of your of your fund or your syndication investment. But when it’s come to fund of funds where you have purchasing qualified, you have quite a purchasing qualified purchaser and you have entities that are buying shares and you’re doing it blind pool. Like we’re doing a little bit more involved because you do want to have those validated as you go because again, it’s a blind pool. So, so, so so you want to go a step further. However, what you just said, you know, it’s within the construct of what needs to happen. Well, that challenging is and this is this is way I think Canada and the U.S. is a bit different. If you’re doing rec d, I create an investor is only, uh, there is something called the Blue Sky Law. The Blue Sky Law require you to do KYC on, on, on your investors, but also depending what state the investors are coming from, you need to register your investment with those states and that can register between one hundred and fifty one hundred and fifty dollars all the way to three thousand if you’re in California or some other state for registration.
Speaker5: [00:19:19] And then that costs if you have a 50 investors there in 50 different states each you have to you have to register, let’s say, half or or or three fourths of the state for the blue, for the blue sky law that your registered investment or a private placement investment in those states. So these are processes you can automate. With those third party hours, as I mentioned, because that can happen on the back of the. But if you do like, you know, like let’s say I don’t know, I don’t I don’t know and I don’t believe that we’ve been able to do that with Document DarkSide because our lawyers typically do that. So, so when I mean, when I talk automation, I see that ninety five percent of everything is automated. There is always going to be something you have to do manually and there is no way around it. But, but but I think if you if you’re less than 90 percent automated, but the only automation you have is pushing the pushing the subscription agreement and then downloading the document and then send it back. And then you’re doing those mail by hand. Then then it’s a little bit to me. It’s a little bit cumbersome. I don’t know how many investors you have. But I think it’s a bit cumbersome depending on how you look at it.
Speaker2: [00:20:52] Wow, that’s fantastic. Well, yeah, because so then because the the I mean, it’s best because you’re saying that you can automate a lot of the. Oh yeah. By laws even.
Speaker5: [00:21:07] Yeah. Ok. Yeah. Easiest, easiest, easiest automate. Ninety nine percent of everything, the one percent you’re going to have to deal with is going to be very, very, very, very minimal. I mean, you will you’ll think yourself for choosing and also be the platform. But remember, right? Its system buckets. So you can’t you can’t use funnel to capture leads. There is, you know, leads. You can always do that. That’s pretty straightforward. But when the data hit the CRM, how do you handle the conversion? That’s where it get from conversion to subscriber to shareholder or investor to investor management and relations. That’s where it gets a little bit interesting.
Speaker3: [00:21:55] Yeah.
Speaker2: [00:21:56] Amazing. Amazing. Because, yeah, because that’s what we call the front office, the back office and all that good stuff. Yep, yep.
Speaker5: [00:22:04] Yeah. And then then when you look at it too, is, you know, today, you know, 60 percent of family offices are now looking in the past five years have outsourced the backend for the administration 60 percent. So, so, so so unless your unless you’re, you know, the benefit capital of the world that can hire twenty eight people to handle funds and document and legal, they have the capital for that. Then you can do that versus you can do all of that. You can do all of that, and then they handle your investor relations and incoming and out of capital, capital, call accounting, rebalancing, distribution, waterfall. And then you have one person that you always talk to. That one person is also what who interface with your capital. Call CPAs all the other legalese or administration for that. You know, that’s easily that’s easily very, very durable. Because when you look at the cost, if you had to hire people to do, to do, to do all of that three, four or five people, you’re looking at a quarter of a million dollars versus, you know, you may be looking at less than a hundred K to do all that. So. So again, I think every. Every every fund or indication is different, but. I like things to be automated by nature, so
Speaker3: [00:23:36] Yeah, yeah, that’s edit.
Speaker5: [00:23:38] You can tell, you know, my background is in computer science, so I love this kind of stuff, man.
Speaker2: [00:23:44] Nice. Same here. But this is nice because but then added, Because what I’m getting here? See, that’s why we call it mastermind, right? Because there’s not one person that knows the whole piece. Because so on your side, I mean, it looks like it’s either yes or it’s, you know, simple landing page or juniper, right? Yep. Either one of those things, because if you do the latter too much like it’s it’s nice. But if you don’t want to touch that, then it looks like Juniper is really the best thing.
Speaker4: [00:24:18] Yeah. And then and then and then also there’s other ones like deal room. I mean, I know the founder, the founder of Deal Room, I mean, we’ve we’ve we’ve we’ve we’ve met several times and also, you know, film conferences in Denver. So deal with me isn’t a good one. I believe you’re still doing the syndication deal, right? Yeah, yeah, so, yeah, so if you’re doing a syndication deal, you know, I know the grand breakers, you know, the good one, everything I just mentioned. If you’re doing syndication and you are very cost efficient but have the same quality as Shredder or Juniper, Groundbreaker is a really, really good one because those guys, I know them very well. And they they they came from the syndication world computer science guys that happened to be with investors. Definitely. Definitely. You know, reach out to those guys, get a demo and see because, you know, and I can make it into, I can make it introduction for you to the dealer room, guys. But I know those guys. And then the grand wicker guy’s worth exploring the very, very cost efficient but institutional quality when it comes to automation. So and and not as expensive as the other guys, I mentioned other shops, but yeah, well, I
Speaker3: [00:25:41] Think that yeah, I’ll look at those and you can make the introduction. I’ll be happy to.
Speaker2: [00:25:50] Ok, awesome. So, so, Abdel, So I’m curious, so when it comes to the when it comes to automation because you really you’re really into the market, right? So then when it comes to automation of of the investor attraction and automation of what would you just say we like, then it just goes to what Facebook ads and the email outreach or what are your thoughts there?
Speaker4: [00:26:13] Well, I mean, well, you think automation, you know, automation is kind of a loaded term, right? There is the lead capture which is separate, you know, SEO search engine marketing. And then there is the video and then triaging of that and then they move to three. They move through from lead generation. They move to free subscription where they now provide want to talk about themselves. Then they move from pre to qualify and then to qualify. That’s when they go to a qualified bucket qualified. And each of those get divided into subcategories. And based on how they enter from there, then you follow up with them, you know, introduce your fund or your syndication if you’re doing syndication. And then from there, once, once, once, once they get the first email, the second email, you may want to have your villa reach out to them or you reach out to them personally. And then, hey, I saw you trying to subscribe, but I wanted to touch base with you personally and then kind of get a little bit more about your goal, but you already have that information captured. Then, you know, you know, if if you live in the next six months, they want to invest between 10 to 100000 and maybe you ask them, you know, it’s not going to be seasonal, would you? Would you commit 100k right away? Don’t shy away from asking for the money. Right. It’s an opportunity. And is that offer when that offer, then even if you didn’t follow up with them, but the system will follow up with them automatically with with the with the subscription agreement and ask them.
Speaker4: [00:27:43] That’s the that’s the call to action. Ask them to do a soft commitment. So, so doing doing that soft commitment, that’s when the transition happened from your CRM. To the fund management services or to deliver more to the investor portal because by then. When they are going for commitment, they will ask them to register to the investor portal. And that goes to validation with the KYC they would have already done during the initial pre qualification. Ok. And from the from they took off, I mean, there are several things you could do, whether it’s inside some of the things you could do. But I think more importantly, I think it’s in the kitchen. To me, it’s a little bit easier because it’s one dealer, one fund, the funniest idea to other things. So it’s a lot easier to be single focused, single minded, fun, single purpose fund. So. So that seems to help a lot better. And I think when you see a demo from Grad Baker or dealer room, they’re going to find out that, oh, actually, that’s really easy, because now you don’t even need to have Clickfunnels. Maybe you just run the Facebook ad and then redirect their site, redirect, redirect them to the portal, because that portal will also come with a landing page for a b testing. Yeah.
Speaker3: [00:29:08] Ok.
Speaker2: [00:29:10] The room and it’s hard. The thing is that it’s a different game when when you’re doing some ads for investors because we ain’t doing Facebook ads for customers, then there’s there’s ROI. But then it’s like it’s a different game because then it’s like. Because really, the money that somebody makes is from the management fees and all that stuff when the investor is already put the money in. And so it’s like, so it’s to track the ROI from the ads based on that. So. And it takes a lot of time and data.
Speaker4: [00:29:41] Well, I mean. Well, yeah, I think again, I think I think I think that all that can be disclosed into the subscription agreement and and understand, even even if you’re raising 10 million, oh excuse me, 10 million, you don’t reach that million in your document. You allow yourself to raise 10 percent because your operating expense has to come from the fund itself or so. So again, the subscription, the subscription agreement and disclosure form will have all of that information. And whoever is the FCC lawyer or syndication lawyer, you know, would have already told you that or provide guidance around that because initially you’re going to have to up, you’re going to have to to to frontload all those costs as you it. And when you close, that’s when you get that back or you get that refund plus your acquisition fee. But in reality, in reality, yes, there is a cost associated with that. And. I think. Yeah, I think there was a lot of stuff that, you know, since we started, since then, I afford a nice soft launch and have fun, but put things together. Now we we understand that it’s a lot more when we say flexible, a significantly more flexible than syndication because syndication is very limited to other things, other areas. But but that’s different. Different approach.
Speaker2: [00:31:17] All right. And this is solid.
Speaker4: [00:31:21] And also to I would say, you know, I’ve done, you know, I’ve been a member of syndication, but I said I would say, I don’t know why I wasn’t doing fund of funds to start with because because now you can have your Reg D, you can have your closed fund, let’s say, if they want to do crowdfunding a crowdfunded crowdfunding fund for free for all of your non qualified purchaser or not actually investors. If you get funding, you can do as little as a thousand dollars per investor. And you know, I have partners or DP that I’ve worked with and of course, sponsor in other deals that virtually raise eight between eight to 20 million in just crowdfunding and the average the average contribution. That stuff with the marketing and Facebook becomes very, very powerful on Instagram from very, very powerful even podcast becomes very, very, very powerful because we’re talking there is a whole other investor class, the wholesaler, the if you will say if you have a real estate, they may not be accredited, but slowly two or three grand. And let’s see what happened. Right. So it’s a strategy. Creativity is is basically uncapped when you’re doing fine, but with syndication, you could do the same, but you just have to use different, different, different methods. And I think in my opinion, if you look, you see this, you definitely got to use one because I don’t know how you. We a better stock and raising strategy without the supply that’s based on what I’ve seen.
Speaker2: [00:33:31] Got it. Yeah. So Andy, what are you seeing? It’s amazing because because the thing is, the smaller the Czech side is, the better Facebook ads comes into play. Because then it’s like because then you can measure be it’s easier to measure the ROI. Right, because then if it costs you like, it can cost you probably like a few hundred bucks for you to like, maybe it costs you like seven hundred dollars to get. A subscription agreements and end of that, you have to get probably like five of them and in one in every five is probably going to invest 8K. And then you’ve actually doubled the money. I mean, if it’s like that, then makes sense and it’s easy to track.
Speaker4: [00:34:15] I see. Yep, yep, yep. Wow.
Speaker3: [00:34:20] So the room or their room?
Speaker4: [00:34:25] Deal dealer, room dealer.
Speaker3: [00:34:27] Oh, yeah, yeah. Okay, I got it. Thanks. Okay. Ok.
Speaker2: [00:34:39] So which one are you going to end up choosing what you’re going to look at all of them and make a choice from there?
Speaker3: [00:34:44] Yeah. Just look, I look at both groundbreaker and room
Speaker2: [00:34:51] Nice and they think like to like if the landing pages you can use, if if the landing pages have only one like thing where it’s like just putting your email in the first page, just so you can get that email at least and then afterwards, then all the other stuff, because I found, like, really good numbers, like if you’re just able to just get one piece of information, I get first. And then once you get that, then you then you start giving them the the OK country and then another job, because then it’s like because if we I think if you give them everything upfront like, oh, then they’ll run away, it’ll be scary.
Speaker4: [00:35:25] What are you going to say, though, is another thing I think you could look at is look at your competitors to see how they are capturing contact. That’s a very good example because people are used to this type of a way of doing things right. And so look at what your competitors are doing and also look internally. You can just Google, Google, Google, Google Sheets or Google Contact Form. Yeah, Google Capture captured contact form and you’ll see a bunch of example you go to that form, look at investor contact form. You’ll find a bunch of them. But whoever is your competitor in that space, look at how they do the process, right? But it’s kind of reverse engineer from there. So, yeah.
Speaker3: [00:36:23] Thank you, Abdul. Thank you so much.
Speaker2: [00:36:27] I was really helpful. All right. All right, so see a few more people here, I mean, any more ideas, questions, thoughts to share, see more people are here as well.
Speaker4: [00:36:50] So I was going to ask for the green to ask for the question, but now that’s my mind. But I know Addy is writing a check, so our friend is up. There you go. We go. But yeah, the the question I had is, is for you not to. Have you seen? Co-investment agreement terms that you can settle it with us.
Speaker2: [00:37:34] Oh, yeah, yeah. There are several investment agreement terms. What type of this is a type of company? It has to be a real estate.
Speaker4: [00:37:41] No, no, no. Not not. It can. It can be fun of fund to funds. But specifically, I was looking at quite an investment of GP or call fund manager agreement terms. Oh, those. Yeah. You know, let’s say, let’s say Guggenheim Partners or our commingling funds to invest with venture capital. Obviously, they would share some sort of partnership terms or agreement or have that scenario. So I wanted to see if you have any savings or if you’ve seen something like that and you could certainly like to compare with the units that Ken and I are working on.
Speaker2: [00:38:28] Yep. So I have one, but one is this for it’s like a it’s like a mini hard money fund. So I have went for like a mini hard money fund. It’s a bit different. And then this one a matter. I don’t know if you’ve seen anything like that on your side, but just any co GP type of agreement. But let me show you, I’ll just share what I got. This one is more for hard money. The second? All right, so I mean, yeah, I mean, something like raises outcome come internally, I mean, we’re actually launching a private credit fund just internally. But so I mean, these are the terms that we got and this isn’t I mean, this is mostly for fixing, but basically this is just a small fund of one million. But they’re saying that, OK, they’re going to provide five hundred million five hundred thousand. You know, once we put it into their little bank account and then so we put we get five hundred thousand, they match it and then they want us to perform to this. So they want us to hit this yield, hit this default rates don’t take 60 percent of the portfolio. They want this cash. Basically, it’s like, let’s play by the rules and then what they’ll do is after a year. Then they’ll give us access to 10x leverage. So they’re going to keep on after a few days, they’ll keep on increasing the yield that we have to hit when they increase it to 40 14 percent after 180 days and then is basically like, you want us to prove ourselves before they give us all the leverage to then have half in half a year to give us one million leverage. And then in a year, then they give us five hundred or so, five million leverage. So I mean, this is the closest thing I have in debt, but I can I can we can dig for some more and then we have some ideas as well. So.
Speaker4: [00:40:39] Can you? I don’t know if you can share that or not, but thank you. I’ve seen one one from Riggio that does something similar to that. But on the debt front or hard money lender, that’s pretty common. But I’m just looking for, you know? Different example, and then from the equity in the equity space, what I understand is because, again, it’s private equity. These are these are a lot more loose because there’s no right way to say, Hey, this is the right or this is the wrong way to do it. I think what we’re trying to come up with is it’s come up with the model and I’m trying to get as many as I can and then reverse engineer that from a distant point and then developing model around that because because when you’re talking to three or four Pacific partners or co-investment partners or foreign partners, they want to have some sort of baseline and baseline. What we’re trying to make it somewhat unique to our capital, if you will. Hmm.
Speaker2: [00:41:48] Ok, yeah, because so then that’s why that’s how you want to grow into your growing fund of fun models because you want to leverage other GPUs out there to grow right. And so you just want to see what other of agreements are there that way.
Speaker4: [00:42:01] Well, I mean, partly, but most funds, most fund, what I what I’ve seen is if you talk to Guggenheim Partners, for example, we already have a model and this is the world. If you’re coming to partner with us, we need to be able to read 75 million dollar check. You know, the concern about the not to profit about 18 percent return because of the amount is can you write a minimum of 75 million dollars per year and then sustain it 12 percent growth, then everything else is pretty open after that. That’s the two basic requirement. Obviously, if you have a hundred million dollar fund, it will be too risky to commit 75 million to one deal. So, so you have to spread the risk. And then that’s why I think with player developing model, the model, whereas it is it is a model that fits the mandate of our fund. We’re not saying somebody else to mandate that only fit or capital fund. And from there, we adjust
Speaker2: [00:43:04] Got it to avoid a concentration risk. Ok. So tell you what I. We’ll look through the archives that we may have to look through the archives. I think the family of this person may have one. And then, you know, in a matter of three, I don’t know if you’re still around, but let me know if you have any as well. But we’ll get one to you based on what we have because it sounds like a way to just lower some of the concentration risk as well and not dependency few deals. So.
Speaker1: [00:43:33] Oh, yeah. So I actually don’t really have a document per say, but but definitely like I can
Speaker2: [00:43:40] Look into it and make adjustments according to
Speaker1: [00:43:44] Whatever, whatever the needs are and advise on that.
Speaker2: [00:43:50] Yeah, no, no worries as well. So. All right, cool. Yeah, we’ll be sure to get you a support ticket sent over, and so we see, Oh, Marcus joined us as well. So Mark, if you have any questions, feel free to just either raise your hand or ping in the chat and then we’ll bring you harm. So. Yes. Hi, Mark, nice to have you. Like, the energy is always. Right. I’m going to be quiet. I’m going to just hang out around for a few moments. You know, if anyone’s who’s thinking of any either thoughts, ideas, questions for the moment here.
Speaker3: [00:44:54] So I think you may have to order on the PR for now until we. Yeah. And to sort out what I was going with Dereham or ground groundbreaker.
Speaker2: [00:45:07] Yeah, exactly. No worries. And then once that’s there, then is this there’s some short term benefit, but then there’s also a long term benefit. So I mean, I look at. Like. And one thing with the PR to I look at the. Because up here would be up there forever, so I’d also look at and you’ll be sent to investor list and so on. So but I also look at after the Edmonton transaction, if there’s if you can line up more things because let’s say in the year, let’s say in a year from now, people are googling you and they’re still seeing an article and we can see, OK, we’re going to send them to kind of think. Yeah, Absolutely. Good, good. All right. Right. So I’m going to just hold back for a few moments, but if in a few moments, no questions, we can stop it, but I’m still here if there are.
Speaker3: [00:46:24] So do you guys have any baby agreements for a real estate project like yours?
Speaker2: [00:46:32] Ye, yes, the 20 Camille Camille has the best ones, so I’m going to need to talk to Kuno for an example. Yeah, I don’t I don’t have the most, because most of the most of the agreements I have is just like, Oh, we’re going to fund this. I have one for an entertainment deal, one for a blockchain deal, one for a tech deal. Ok, yeah, so I have one, actually, no, I have one for fun. Yeah. Richards, Richards All Black Fund. Yeah, yeah. We’re going to take a look at that one as well. Richard Reid got some funding for one of his these deals, and so we’ll use that as an example. Ok. But it’s more, but it’s a it’s a debt fund, so it’s a bit difference. But we can we can show you what we have there as well. So.
Speaker3: [00:47:24] Yeah, I think that were just to just to have an idea, and I could tweak it to fit, to fit the purpose and get it latched onto to the lawyers to to review Nice.
Speaker2: [00:47:39] No, perfect. Yeah, and figuring, oh, it gets. Yeah, you can have a copy of it, so I see. Yeah. Mark, you can have a copy of it when we get it. I know. Yeah, you don’t have to go on mute or if you have any verbal question, you can unmute, but yeah, we’ll send that over. Well, we wanted to take a look at that document anyway, so.
Speaker1: [00:48:16] In that, too, how’s it going?
Speaker2: [00:48:19] I can’t complain. How’s it going with you?
Speaker1: [00:48:21] Oh, it’s going well, going well, thanks. Nice. So I assume that you had that recent acquisition or whatever that you guys are kind of putting together. I kind of click through, but I didn’t really understand that. You explain what that what, what you guys just recently put together and and how that’s going to help the community.
Speaker2: [00:48:41] Yeah, no, exactly. So then that one is so Richard. What we managed to do is we worked on because we kind of had a corporate goal of saying, OK, let’s look at the acquisitions. And Richard Reid managed to acquire a commercial brokerage. And so what they do, they work with different lenders and they have the book of business of lenders and so on. And so, you know, got the acquisition done. So now Richard owns, I believe he has, what, 20 or roughly roughly 20 percent stake in it. And now what you would do, he’s just going to raises their com doesn’t actually own it. But because we have an agreement where it’s like a partnership agreement for all the transactions that he’s able to secure, we benefit from. He’s just going to give us his relationships to lenders. And there are more, you know, they do a lot of trade finance, mainly mainly trade finance equipment, financing, things like that. And so, yeah, the point is I don’t want to get their contacts there, and we’re going to use the context that they already have instead of make some new relationships. So for the introductions that we have for new members and say, Oh, you know this, this and this, and so we do those introductions rather than go cold. And so it just it’s good spin to speed of these things up there.
Speaker1: [00:49:53] Okay. Make the lending component with some actual brokers and stuff that kind of working. As well as that, what it is or.
Speaker2: [00:50:04] Yes. But let’s let’s brokers more more direct lenders, OK, more direct lenders. Ok, nice. Yeah, because every one’s trying to be a broker just to get more close to the money rather than chase around sales with brokers, right? Yeah.
Speaker1: [00:50:25] All right, great. So I of, you know, I kind of want to get back to the thing I’m kind of been working on some other projects focus in the last couple of weeks here, but I want my data room teaser area putting together, you know, the data room for kind of hard money, fun that I want to do. And so you were mentioning that if I needed some help with that, I could just kind of email. You get a rough draft going and kind of email we could go back and forth or, oh, you could do some type of meeting the kind of. Because was the technical side of things are probably my weakest point, like I think my best point is like. You know, doing the deals and like talking and selling the deals, but when it comes to doing like the technical sides, it’s like it’s like, I want to do it, like going to the dentist, you know? And so I’m not very good at it, but some people are a lot better than I am at it. So.
Speaker2: [00:51:25] Fair enough. It’s funny when you joined. It’s funny. We were just talking about pretty much every deal room automation piece of software to exist right before you joined. But yeah, yeah. And we have we have a few people here. So then we have even right on this call, we have better who is a I mean, he’s he’s a charterholder financial analyst, chartered financial analyst. So then, you know, he’s been doing really great and just helping our community look at, you know, go through the financial part of it, the financial part of it. That’s when it comes to the, you know, if it’s an equity offering and end subscription agreements, you know, yeah, we can help. We can help you just some templated things and then introduce like, if needed, well, when needed, rather introduced to any attorneys for the final kind of go through if it’s an equity offering, you know, depending on the situation, whatever. So yeah, obviously we can go back and forth even on a call like this. We can go through everything you know, depending on if it’s confidential or not and then or an email. And so,
Speaker1: [00:52:26] Okay, that’s great. That’s comforting to know. Procrastinated myself on that part a little bit, but, you know, because I’m working on some other things, but that’s great. So hopefully you guys will be hearing from me here over the next week so I can start getting that kind of put together. I just kind of set the launch date for just February 15th just to give me some time just to kind of get everything together. Yeah.
Speaker2: [00:52:55] Ok, nice, nice. Yeah, and then on this call, I mean, some heavy hitters, because we had like Abdul, when he when he when he joined, he was in the point where, you know, he was getting everything together. Now, you know, they’re they have a soft launch, for example. So yeah, I think before the thing, before the thing is sets, as long as you can get a good idea of some by side relationships, you have everything already so that you’re not too reactive. And then because this project is bankable here is presumably based on what you told me. So I’m looking forward to seeing it actually getting getting some attention here and then getting some getting some press when this thing closes.
Speaker1: [00:53:35] Nice. That’s great. Yeah, I’m going to think I’m going to I’m going to do the hard money route to be kind of like a bridge money between fixer upper flipper people and in the closing and or builders and developers. But the nice thing about what we can do is with it is we can actually borrow one hundred and fifty percent. On it, because when the people are borrowing the money, they’re not, they’re closing on the whole loan, but they don’t, they still get it and portions as the work gets done. Yeah. So there’s like, you know, they’ve got to prove the work’s done. So there, really, you can really borrow like one hundred and fifty percent of what you actually need. So that creates some. Arbitrage there. Um, you know, some space and then. And there’s other ways, too, so I’m kind of learning something from another fund around here that in Minnesota, that’s been doing it, but. And then there’s also, you know, leveraging with bank relationships to, you know, also taking the money and, you know, five or 10 million, then using the bank and can release a lot more also increases the. The rate of return, so I really think I can get them in, you know, up in the middle, you know, like up to like 15 percent return or or something like that, you know, so that’s kind of what I’m trying to put together. And I pretty much got the numbers, it just putting all the marketing materials together and then starting to get the virtual assistants to hit the KPIs.
Speaker2: [00:55:08] Exactly. Hit the streets and hit that, but then the bear reminder, if you get a few your few introductions we can, we can get to this so that you can, you know, things can move along for it further. I mean, we’ll do we haven’t been yet. We’ll do. We will do Kevin, and we’ll get Kevin to go more towards direct sources rather than investment banks. So, OK, get you some a few introductions just so you can get some more feedback. But then it sounds it sounds like something you know after a matter goes through it. I mean, because he has the, you know, some of the necessary, you know, credentials, you know, provide our opinion just so that you get the best, best ideas. And then. And I think we’re going to get a lot of calls set up. Ok. Hmm.
Speaker1: [00:55:54] That’s great. That’s all I had.
Speaker2: [00:55:56] Beautiful, beautiful. You’re looking forward here. All right. And then we have Kevin, it looks like it looks like a few people are dropping off and maybe it’s time to call it. So. So I guess, you know, Abdul Mark or Ken, if there are any more questions, let me know in a few moments. But if not, I hope I hope this helps and we have the next one on Wednesday at 11:00 a.m. Eastern. And obviously,
Speaker4: [00:56:27] Yeah, yeah, that’s me. I have a little question about death fund, but I think we can do that at the time because I’m still interested to see the full formation. I think we and I talked about it offline some time ago. I’m still interested into looking at the full formation void that fund. Like you’re saying like that right now, partly because, you know, there are different way of extending that, but the relationship or creating the the the leverage between local back, that’s something that I know personally I’ve been interested in. But I would like to see what the full doc look like from a structure standpoint and then one that is operational. If you have that example, I’ll be, you know, I’ll be very keen to take a look at it and see if I can if I can deconstruct that. I’ve always been on the equity side. So. So it’s a bit different for me, but I do see potential there as well.
Speaker2: [00:57:29] Nice. Nice. We’ll send you. We’ll start with the all this one. This one deal Richard has called the All Black Fund will work on that and got some funding secured. So we work on that one. And then we also we also have the we have the example of the GP thing. So would you for the, for example, debt fund? You would like to see the entire data room? Or is there anything particular?
Speaker4: [00:57:55] The entire auditorium, I mean, the whole. What I see, the full stack, the full stack, so the entire battalion.
Speaker2: [00:58:02] Nice got it. Yeah, we’ll make it happen there and. You know, someone got funded, so we’ll make everyone
Speaker4: [00:58:08] Happy with it. Sounds good.
Speaker2: [00:58:12] All right. And Mark, obviously, Mark, if you want a copy of that one as well, you can get that to you, but let me see in chats. Now, it looks like the Chad is now empty. All right. All right, cool. Any more questions, guys, happy to see your answer anything else? All right. Or it looks like there may be a. Yes, the same process supported raises matter, and the entire team is here. I’m here, too, and then 11 a.m. Wednesday and take it from there. All the best to everyone in their transactions. Look forward to seeing them get the.
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