Funding Overview & Funding Vision:
Speed Capital will provide investors with several different options for investment. This will enable investors to identify and select those investment transactions that mirror their risk profile, time horizon and return expectations. Providing our investor base with this flexibility should help distinguish Speed Capital from competitors. It should also attract a greater breadth of investors given the attractive and diverse opportunities.
Asset Based Lending Transactions – These structured and secure loans typically provide investors with a 12-14% net yield based on a 12-24 month hold. Loan to value is not greater than 60%. These debt transactions are secured by underlying assets of a company (most typically real estate). The key to these transactions is the collateral coverage available, i.e., how much collateral are we receiving to secure our capital? In some cases, in riskier scenarios, expected returns can exceed this range but not without assuming significantly greater risk than Speed Capital anticipates to be acceptable.
Undeveloped Land – When appropriate (based on market opportunities and expected length of the hold period) Speed Capital will acquire undeveloped land for appreciation. Again, the returns can be quite attractive and the holding costs are minimal if properly structured. The length of the hold period is critical to a successful exit and return.
Hybrid Debt Investments – In some cases, the investment will be a combination of a debt-driven opportunity with an equity component attached. Returns for these types of investments can range from 20%-40%. The critical analysis required in these transactions is to identify the exit strategy and validate (to the degree possible) that it can be achieved.
Private Equity investments – While a relatively broad range of investments can fall into this sector, typically these investments provide the investor with the opportunity to make an equity investment into a privately held company. The investment can (but does not always) possess an income component but it is typically designed to provide the investor with substantial growth potential. These investment are typically a longer term investment horizon (3-5 years).