Verifiable and actionable intelligence for the thoughtful investor
This serves as the bank secured alternative funding strategy to finance CAM’s fully paid up $50bn alternative funding company. Who’s funding capacity is magnified 4 X through CAM’s private wealth lending platform group. To smartly power its self sustaining project funding ecosystem
Here’s how your outsized return is achieved
CAM’s bank-managed buy-sell contracts signed with our bank trader is executed on a capital protected basis, as our capital and its return is contractually bank-guaranteed. The bank trader’s “riskless principal” new issue arbitrage trading of Medium Term Notes, means no buy-sell takes place unless there is a pre-contracted exit buyer in place, that has agreed to pay a fixed higher price for the Medium Term Note before the transaction begins. So locking in a predetermined guaranteed profit per trade. The difference between the buy and sell price represents the profit per trade.
These managed buy-sell operations constitute a “riskless principal” transaction as referenced in the Federal Reserve Bulletin of Aug. 1993, entitled: “Anatomy of the Medium Term Note Market” where on page 765 it states: “In a riskless principal transaction, when the dealer buys the MTN, it has already lined up an investor that has agreed to the terms of the resale”.
So by repeating these trades back-to-back weekly over the 10-week contract term that is then repeated 4 times over the year. This thereby generates an outsized capital protected and bank-guaranteed fixed rate of return that is then used to fund CAM’s project without exposing its investors to either project risk or market risk, because CAM’s return is fully bank-guaranteed.
The bank trader working via their global top-20 bank can not trade for themselves using their own funds unless there is a third party client, willing to block an audit deposit in the client’s own sole signatory account, to in this way enable the bank trader to enhance their existing credit lines without using that client’s audit deposit, as collateral, encumbering it, or placing it on call at any time.
So it is this bank regulatory requirement for an audit deposit to be pledged by a third party client to serve as a proof of funds, that creates this opportunity for CAM as the bank trader’s third party audit depositor. To block its $500m within its own sole signatory bank account. To so enable the trader to use this deposit to bank compliantly trigger their access to their own now further enhanced credit line, extended from their own bank, drawn against their own callable assets, not against CAM’s.
The trader then uses this enhanced credit line to execute the riskless principal trading of Medium Term Notes leveraged at up to 10 times CAM’s blocked $500m, fully bank secured on a non-depletion basis.
Securitizing your outsized return
CAM’s bank-managed contracted returns in these trades do not represent commercial profits found in a typical customer facing business selling goods and services. Rather, these bank-guaranteed financial benefits are generated and allocated to fully finance CAM’s project. Accordingly CAM is issuing a Tracker Certificate security, that offers you exposure to an outsized return under CAM’s bank-managed and bank-endorsed alternative funding contracts.
These bank contracts are not primarily to enrich investors, but rather they serve to enable financially sophisticated project owners/founders to more efficiently finance large projects debt-free. Which is why the minimum Medium Term Note face value denomination for which the bank trader can execute its bank-managed trades start from $500m.
So because most investors do not have such liquidity nor the privileged bank/trader relationships. This offering is prudently structured to give a pool of qualified investors, advantaged exposure to CAM’s fully bank-secured outsized return, found only within this highly specialized private wholesale baking market.
Your outsized return, plus hard cap extraordinary coupon bonus
CAM’s Tracker offers a 2-part return that is non-market correlated. CAM’s first pay-out is as an “extraordinary coupon” rate bonus subject to CAM achieving its hard cap. In which case a 3 X dividend in month 7.5 is paid after CAM’s bank-managed and bank-guaranteed buy-sell alternative funding contract is signed.
Then the Tracker’s final exit return is accomplished via CAM’s share buy-back at 10 X the Trackers original unit price paid at its maturity 12 months after CAM signs its bank-guaranteed funding contracts. To in this way capably pay its pool of Tracker investors a bank-guaranteed leveraged return of 1,300%, by CAM entering 4 10-week, $500m bank-endorsed buy-sell contracts, as the alternative funding strategy to fund its projects, with CAM’s $500m capital blocked on a fully bank-guaranteed non-depletion basis.
Allocation and pricing
CAM will have 1.38389117% of its $50,701,655,734.68 called up share capital issued as an bankable exchange listed Tracker Certificate with a Swiss ISIN, that will track CAM’s share price to transparently reflect the current value of your private equity investment in CAM.
A fund-driven ecosystem
Of CAM’s called up share capital of 50,701,655,734.68, 1.38389117% of this that represents ($701,655,734.68), is allocated to CAM’s Tracker Certificate investors to thereby finance the establishment of CAM’s own $50,000,000,000 investment fund structured so that its capital over 12 months is fully paid up. This is so that CAM can ultimately deploy its wholesale lending group’s highly specialised alternative funding programs, to more efficiently fund an even greater number of projects globally beyond this as CAM’s initial foundational project.
Secured leveraged income streams
The fund’s earnings are from its participation in the 25% bond deposit-driven, fully capital secured/bank-guaranteed 4 X Multiple Program. That is available through CAM’s partnering private wealth lending platform group (PWLPG), to approved projects globally.
So by our investment fund pledging just 25% of such a project’s budget, held in safekeeping via this capital insured/bank-guaranteed coupon bond paying a coupon rate without exposing CAM’s capital to project/market risk. The fund can thereby earn a bank-guaranteed coupon rate of 5% per annum, paid monthly, via our private wealth lending platform group, and it can also take an equity stake in the project. Plus earn a bank-guaranteed 20% p.a. coupon rate by pledging from $1m to CAM’s affiliated PWLPG’s Project Sponsoring Program.
Private bank-to-bank settlement
Our Tracker Certificate product is a structured note like others in the market and so any bank in the world that can offer its customers settlement under Delivery Versus Payment (DVP), is able to place a buy order. Whether they are willing to do so commercially, is ultimately that banks decision. So in order to buy our note the starting point is to first speak to your bank.
So if DVP is available to you via your bank you can then buy CAM’s Tracker Certificate. The process is that you first inform your advisor/bank that you wish to buy an exchange listed Tracker Certificate, this is fully identifiable to your bank simply by you sharing the provided ISIN/term sheet with them. So the bank can then execute your DVP buy order for you as their customer, under the Tracker Certificate’s ISIN, bank-to-bank from the Paying Agent bank.
Soft cap
Our soft cap is $500,054,710, so if funded at this level it allows CAM to establish the $50bn investment fund as a stand alone project. As it is this fund that is the key foundational tool to entirely power CAM’s self-funding ecosystem. So it is no problem for CAM to establish this fund alone. As investors still earn the same 1,000% return with CAM achieving the hard cap. The only difference being it doesn’t also trigger the bonus extraordinary coupon rate pay-out.
Hard cap
$701,655,734.68 is this project’s hard cap of which $500,054,710 is used to sign the 4 bank-managed buy-sell contracts used to fund CAM’s alternative funding arm, that will be CAM’s $50,000,000,000 investment fund. To in this way, fund projects globally via our partnering private wealth lending platform group.
So once at this hard cap funding level the remaining balance of $201,601,024.69 is allocated to our Project Sponsoring Program to thereby create a fully bank and insurance guaranteed monthly coupon rate income, to thereby sustainably grow CAM’s fund at 20% p.a.
Then garnering more ‘bang’ of our investment fund’s buck, by securely leveraging CAM’s $50bn investment capacity through our private wealth lending platform group’s, four times Multiple Program. To in this way sustainably magnify our 25% bond deposit, by 4 times, for a 5% p.a. coupon rate, whilst getting an equity kicker on CAM’s selected and approved global projects.
So this $701,655,734.68 hard cap will cause CAM to trigger its conditional “extraordinary coupon” bonus pay-out of a 3 X dividend in month 7.5 after signing its bank-managed/bank-guaranteed buy-sell funding contract, to serve as a bonus reward to CAM’s Tracker investors if the hard cap is reached instead of the soft cap.
Crucially however, even if this hard cap is not reached CAM will still by default pay its Tracker investors the same bank-secured 1,000% ($5bn return) in proportion to each investor’s original Tracker Certificate investment. So this extraordinary coupon payment is over and above CAM’s bank-secured 1,000% return. As an enhanced bonus coupon rate to be triggered by CAM reaching its $701,655,734.68 hard cap.
Financing the fund
The 3 X dividend in month 7.5 is already factored into CAM’s financial statements, so only 4.5 months after this in month 12 your exit matures so CAM then buys back all 500,054,710 originally acquired Tracker (shares), at 10 X each Tracker’s original $1 purchase price, using the accrued 12 months proceeds from CAM’s 4 bank-managed buy-sell contracts. So the total direct cost of CAM’s share buy-back is $500,054,710 x 1,000% = $5,000,547,100.
Therefore, because CAM’s 12 month pre-tax funding return is $59,499,572,968.25, we deduct from this CAM’s Gibraltar CAT 2 tax rate, the securitization platform fees and the total share buy-back cost giving us $5,001,241,409.65. This results in CAM achieving a net funding proceeds surplus of $54,498,331,558.60 .
CAM uses this net funding profit of $54,498,331,558.60 to declare a $1 per share dividend, that is then immediately re-invested into CAM by the founder to fully pay up all unpaid 50,000,000,000 shares, to in this way create a $50,000,000,000 investment fund to power our project’s self-sustaining ecosystem.
Capitalization of Ex-listing platform’s fees
To ensure we still have (after listing platform fees) the required amount to execute our project based on the minimum soft cap of $500,054710, minus the upfront/raise-dependent listing platform fees of: $40,213 + $600,065.65 = $640,278.65 + $500,054,710 = $500,694,988.65. So with these fees capitalized into our raise the total is $500,694,988.65.
To ensure we still have (after listing platform fees) the required amount to execute our project based on the hard cap of $701,655,734.68, minus the upfront/raise-dependent listing platform fees of $40,213, + $841,986.88 = $882,199.88 + $701,655,734.68 = $702,537,934.56. So with these fees capitalized into our raise the total is $702,537,934.56.
Capitalization of IB’s closing fee
As CAM pays a capital raising closing fee of 1.5% for our investment bankers capital introductions paid on successful investment closing as a performance-based fee deducted from the capital amount raised. Accordingly, to ensure that we maintain the full required correct amount to execute the transaction. We are similarly capitalizing this 1.5% into the above soft and hard cap amounts. So the fee-adjusted soft and hard cap to be raised is, $500,694,988.65 x 1.5% = $7,510,424.82975 + $500,694,988.65 = $508,205,413.48 (soft cap) and $702,537,934.56 x 1.5% = $10,538,069.02 + $702,537,934.56 = $713,076,003.58 (hard cap).
Deal structuring fees
So based on the above fee capitalizations CAM’s net $500,054,710 soft cap has deal structuring fees of $7,510,424.83 + $640,278.65 = $8,150,703.48. Whilst its $701,655,734.68 hard cap’s deal structuring fees comprise of $10,538,069.02 + $882,199.88 = $11,420,268.90. To thereby be split proportionately amongst the investor syndicate relative to each member’s allocation.
Triggering CAM’s Stock Ex-listing
It is important to understand that although CAM’s securitization platform’s fee for the net soft cap raise of $500,054,710, is $600,065.65 as the raise-dependent element of the platform fee. Only the $40,213 is actually required to be paid upfront to trigger the execution this entire transaction, as this raise-dependent fee is payable to the platform only once the raise is achieved.
So for the upfront fee of $40,213 paid to our securitization platform to provide the infrastructure to get our bankable Stock Ex-listed Tracker Certificate, (with Swiss ISIN and Term Sheet prepared), listed on a licensed and regulated EU Stock Exchange and on Bloomberg.
Means CAM’s underlying strategy has its shares price dynamically mirrored to reflect your Tracker’s publicly quoted price. Enabling us to raise up to our hard cap of $713,076,003.58 (including capitalization of fees), for this same $40,213 service fee. So our bank-guaranteed alternative funding strategy can establish our $50,000,000,000 fund, (with its capital fully paid up over a prearranged term), to sustainably power our global projects alternative funding ecosystem.
Priority access
To join the waitlist for updates and exclusive early priority access to our bankable Tracker Certificate strategy to be listed on a licensed and regulated EU Stock Exchange soon. Just subscribe below to our newsletter for the latest pre-listing updates and to qualify for discounts off of your Tracker Certificate’s management and performance fees, on your bank’s DVP buy orders from €1m and up.
Thanks – Colin Blanchard
CEO, Cautus Asset Management Ltd.
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