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In
this new world of Humpty Dumpty Finance,
capitalizing an emerging growth
company or a new
venture is almost impossible - at best,
extremely difficult in today's ever changing
marketplace.
iCap Ventures is leading the way
domestically and internationally in unique, creative
and proprietary structured finance
solutions for
this new world of finance. We have
developed structured finance/funding systems
which can provide capitalization for small & medium
size enterprises (SME's) in
the early stages of their development, as
well as for seasoned and/or emerging growth
companies.
Our
unique and proprietary investment banking
tools, structures and systems give qualified
companies or ventures the highest possible
opportunity of
achieving their capitalization goals.
We provide
unique capitalization solutions through the
convergence of insurance with the capital markets,
providing an alternative channel for borrowers to
transfer risk to A+-rated guaranteed insurance
contracts (GIC) which have a term-certain return of
principal and fixed internal rates of return.
We partner with institutional
investors & lenders for our capital
resources, and we have domestic and
international sources for
relatively liquid and guaranteed collaterals with
limited correlation with other exposures. The
unique arbitrage in our Structured Finance solutions
can
provide qualified projects/ventures a
ten year "interest only" loan - of which the interest only payments equal an amount that would be the same as repayment of 100% of the principal only.
International Structured Finance Solutions
The Insurance-Linked Capitalization
Arbitrage Program (iCAP)
Our Insurance-Linked Capitalization
Arbitrage Program (iCAP), provides
international and domestic project/venture
funding through our proprietary system of
capital arbitrage and structured finance of
institutional notes and loans.
Our structured finance strategy has been
developed through the use and leverage of
Insurance-Linked Longevity Assets which are
reinsured to a fixed term certain maturity,
to provide capital securitization needed for
the development and completion of approved
projects/ventures throughout the United
States and in “free world” countries. We
have created note and loan structures that are
“A+” rated by the top credit rating agencies
in the U.S.
A
significant arbitrage is created between
guaranteed coupon rates to Institutional
Investors and the return of the invested funds earn as invested in a Reinsured
Insurance-Linked Longevity Asset Fund.
This side investment of a portion of the
loan funds provides securitization which
becomes the
underlying collateral for our Structured
Notes or Loans, having a face value of up to
One Billion US Dollars ($1,000,000,000 USD)
with a term of ten (10) years from the date
of issue.
An
Indentured Trust is set-up and funded with a
certain portion of the institutional loan
funds to insure the payments of minimal
baseline interest and associated maintenance
cost of the structured note over the term. The maturity
(or alternatively the reinsurance guarantee) of the asset-class
insurance-linked longevity fund
ensures the return of 100% of the Principal
at the end of term. Allowing for the
difference in cost of the collateral assets,
premium payments, reinsurance and all
associated fees
(deducted from the institutional capital), the
net remaining balance (gross borrower loan) is allocated to the project/venture
in the form of a ten year “interest only”
note. We also require up to a 20% Equity position in each project/venture.
The approximate time for the release of
funds from project approval to capital
distribution is typically between 120 and 180 days and
is virtually guaranteed due to the fact that
we pre-approve each client project with our
institutional investor sources.
Our firm has well-developed and proven
methods for organizing and structuring
capital arbitrage finance solutions,
including cash-backed collateral instruments
and insurance bonds for our institutional
investors, and for procurement of full
capital funds with favorable terms and
rates.
For projects/ventures that cannot
provide sufficient collateral to secure a
commercial loan, a complex and multi-level
approach to structuring the transaction
makes it possible to successfully receive
venture capital funding, without any
collateral from the client. We are
recognized by cooperating Institutional
Investors as a “Collateral Provider” of
“Guaranteed Insurance Contracts” (GIC),
allowing us maximum control over management
and support for the structured collateral
financing process. |
