Venture Loans
Venture Loans are generally loans made to a private company which is not yet profitable but is growing rapidly and is expected to reach self-sustainability with the Venture Loan funding. As a result, there is an element of equity risk in these loans, albeit much less than with a start-up as these companies have products on market, with sales and some history. EPC typically includes a number of features in these Venture Loans which make them attractive to investors:
Interest and PrincipalInterest is typically 14% or higher and there are quarterly principal payments.
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Collateral and GuaranteesWhile these are unlikely to make investors whole in the event of a problem, they do ensure that the entrepreneur's interests are aligned with the investors'.
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WarrantsWarrants to acquire shares at a future date at today's value, in order to provide investors with potential upside beyond their interest coupon.
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Film & TV Debt Financing
Film & TV Debt Financing are loans made to a film or TV producer, which may include government tax credits, pre-sales, minimum guarantees, and more as collateral.
Interest and Principal12%-16% interest, interest and principal are paid out when the collateral turns into cash.
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TermThese usually mature in 12-18 months.
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Minimal RiskThese projects have been vetted for the security, are bonded for completion, etc. We do not take on equity risk.
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Unicorn Equity
We occasionally get access to share offerings of Unicorns, which are private companies with billion dollar plus valuations.
LiquidityThese companies are expected to have an IPO soon, at which time you could sell your investment
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Attractive ReturnsThese companies are in high growth mode, with potential for high returns.
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RiskYour shares are illiquid until after an IPO occurs, which may take longer than expected.
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Other Opportunities
EPC will occasionally present you with other attractive private investment opportunities.