Kiribilli Private’s Investment Philosophy

KIRIBILLI PRIVATE MEDIA – MAY 2018

Kiribilli Private is an alternative investment marketplace that provides accredited investors (lenders) with opportunities to connect with highly vetted borrowers and the opportunity to invest in asset-based lending with a targeted annual interest of 8-20%.

We let the investors Become the Bank.

 

We present investment offerings from experienced and trustworthy loan originators or asset managers with significant long-term track records of success in their respective investment area. We only accept investments that have a low correlation to the broader markets, are backed by strong collateral and are short in duration (up to 36 months).

In summary, each offering introduced by Kiribillli Private must meet the following criteria:

  • Asset-backed with strong collateral

  • Have low market correlation

  • Managed by proven asset managers

  • Short in duration (up to 36 months)

  • Targeted annual interest of 8-20%

Let’s explore these in greater depth.

Asset-based with strong collateral

All offerings introduced by Kiribilli Private are asset-backed loans that are secured by strong, tangible collateral. Unlike a traditional bank loan, which is approved based on a borrower’s credit score, balance sheet ratios and cash-flow statements, asset-based lending (ABL) is granted based on a thorough investigation into the tangible assets that a borrower can offer to secure the loan.

Borrowers can put up equipment, inventory, accounts receivable and other liquid assets such as real estate to secure the financing they need. In the unlikely instance that a borrower defaults, the originator, trustee or asset managers can seize the assets and sell them to pay off the investors in the loan.

The originators of our asset-based loans have deep expertise in asset valuation. In addition, Kiribilli Private only accepts investment opportunities with low loan-to-value (LTV) ratios. LTV ratio is a financial term that expresses the ratio of a loan to the value of an asset purchased. The lower the LTV, the less risky the loan is because it’s backed by a lot more collateral than the value of the loan.

For example, Kiribilli Private investors participated in a $200K Pro Athlete Loan to an NBA player, for example, that was secured by his $2M guaranteed player contract, as well as insurance in the event the player should become injured, die or otherwise fail to complete his contract. Our investors earned 10% over the loan’s 24-month term, receiving their pro-rata interest payments on the 15th of each month.

Low Market Correlation

Kiribilli Private offerings provide low correlation to the broader markets, meaning that they are largely unaffected by whether the stock market is rising or falling. Investments that are low in correlation may help cushion portfolios from turmoil in the stock market and the global economy.

Traditionally, ultra-wealthy individuals and institutional investors have included low-correlation alternative asset classes such as litigation finance, aircraft leasing, real estate lending or receivables funding in their portfolios to help reduce their overall exposure to stock market volatility.

Until now, accredited investors were shut out of these types of offerings by high minimum investments and other barriers. At Kiribilli Private, however, we are using the power of technology to disrupt this state of affairs and bring low-correlation investments to all accredited investors.

Proven Alternative Investment Asset Managers

Asset managers are key to ensure that the loan or investment is serviced smoothly, and the returns are flowing back to investors. Kiribilli Private works with proven asset managers who are experienced operators in their investment area and have seen been through down cycles. They must be subject market experts in their asset classes, know the market and have experience managing the investment. This ensures that your hard-earned money in this investment is managed appropriately.

If the above 3 criteria are met then we consider yield and duration.

Short Duration

Short duration offers investors flexibility that they may be seeking. Generally accepted investment period range from 12 months to 5 years+. Most investments you will find on Kiribilli Private are typically 1 to 3 years. Short durations provide our investors with:

  • Flexibility – Kiribilli Private investors are not required to tie up their capital for long periods, as they would be investing in real estate, for example.

  • Substantial returns – Borrowers are willing to pay higher interest rates for the short- term financing Kiribilli Private investors provide to them.

Targeted Annual Interest of 8-20%

At Kiribilli Private, we provide access to asset-based investments that target yields of 8-20% for accredited investors.

In times like these, high-net-worth individuals and institutional investors search (and find!) higher yields in specialty finance investments. Until now, these offerings haven’t been available to most accredited investors.

 

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No Financial Services Kiribilli Private (“Kiribilli”) provides a private capital marketplace by which it may introduce potential accredited investors to asset- based Investee Entities. Any securities or participation interests which are issued or sold as a result of such introduction will be issued by the Investee Entity or by another person affiliated with the Investee Entity (for example a current shareholder/founder of the Investee Entity).

Kiribilli is not engaged in a business of providing financial services and does not hold an Australian Financial Services Licence or is regulated by the Financial Conduct Authority.

Kiribilli does not provide any financial product advice (whether general or personal) in relation to the securities or participation interests which are offered by or in any Investee Entity or in respect of any other financial product. In particular, Kiribilli makes no recommendation as to the suitability of any investment opportunity for any potential investor and does not take account of any investor’s financial situation or needs in making information about Investee Entities available to members of private capital marketplace.

Kiribilli does not provide dealing services in relation to any financial products, including any securities or scheme interests issued or to be issued by an Investee Entity, whether by way of arranging their issue, acquisition, variation or disposal or by any other means.