HOW IT WORKS

FINATECH HAS TWO PRIMARY SOLUTIONS

How the First Solution Works

Conventional Structure

$140 million in profits

With the conventional structure, the fund's return to its investors is distributed evenly among the investors. Thus a 14% return at the fund level means a 14% ROI for every investor.

FinaTech's Structure

$140 million in profits

$35 million

$105 million

$500 million in senior investors

7% ROI

In FinaTech's first solution, half the investors are senior and paid a preferential 7% return. If the fund earns 14%, and the subordinate investors receive the rest of the return, they'll net an improved 21% ROI.

$500 million in subordinate investors

21% ROI

$1 billion in investors
14% ROI

How the Second Solution Works

Conventional Structure

$140 million in profits

$1 billion in investors

14% ROI

With the conventional structure, the fund's return to its investors is distributed evenly among the investors. Thus a 14% return at the fund level means a 14% ROI for every investor.

FinaTech's Structure

$140 million in profits

$50 million

$90 million

$1 billion bond earning 5% interest.

In FinaTech's second solution, the fund is capitalized by selling a bond guaranteed by the investors' capital call commitments. Interest on the bond is paid first, with the remainder of the fund's return going to the investors. Because the investors have advanced little to no money, their ROI is exceptionally high.

50%+ ROI

Investors advance little to no capital.

© 2019 by C Squared Structured Investment Fund