Guys,
I am involved in a proposed private project to raise funds for a very specific type of investment. Details with held for the moment.
The very basics, is to invite investors to the investment fund (this is back by a HUGE international investment company with local offices and registered FSP) and for them to "pool" their funds to get the required minimum funds. This product has been specially designed for us by these guys, and is not available to anyone else anywhere.
In this case we are talking an investment of R30 million. Yes a relatively large amount of money but if like John Q's idea we break this into smaller chunks the idea is that much more feasible.
The idea and returns are tailored to every investment type but the initial thinking is to invite investors (angle funders if you want) to put up min R30k each max R300k.
Returns are based on the following:
120 days - 12% return on capital
150 days - 18% return on capital
180 days 25% return on capital
360 days 45% return on capital.
I know not exciting returns but a heck of a lot better than your average investment and your capital is 100% guaranteed.
These interest amounts are virtually guaranteed (details still being ironed out) and your initial capital is 100% protected, so you can never loose your capital.
Initial capital is paid to projects Attorneys trust account (protected by the fidelity fund) until the full amount, in this case R30 mil is raised. This way should you really decide to pull out before the fund is opened you can get your capital back. You might loose a bank charge fee for EFT of a few rands but that's it.
Once full amount is raised and invested the interest amounts above kick in (NOT BEFORE) and the capital further protected by the investment house etc.
Angel Funders / investors are in no way involved in the decision making process and have no equity in the investment / project after their initial capital / plus interest is paid back to them.
This is a pure and simple group investment fund and we are aiming to guarantee return percentages as stated above and your initial capital.
The investment fund will run in all likelihood once every year for 12 months and be closed out. Payments will be as above and the longer you keep your funds in the investment (min 120 days) the higher interest you get back.
LOW RISK, GUARANTEED RETURN (well I am working on that, but capital is 100% guaranteed and I should be able to advise in a few days on percentage returns)
Previous and New investors will be invited to a new investment the following year and so on. Only 1 fund will be run annually and the top side (maximum fund size) is unlimited but the initial starting fund size has to be R30 mil to make it viable and get these return amounts.
NO PONZI STYLE AND NO SCAM, but I cannot divulge details (other than this is a tailored product that was designed for this purpose alone and is not available to others) on it quite yet as we are in final stages of terms and conditions negotiations etc with the investment house.
Once finalised and ready to run you will get a full details and contract laying out the terms and return amounts due to you.
Basically I want to bounce it off your heads and see if interest exists?
I invite comments