Private Equity
Private Equity
Explore our niche Private Equity initiatives, a recognized asset class that is gaining more traction each year due to its advantages which include: Less volatility, more reliant on underlying factors, higher historical growth and less volatile returns. Innovate Solutions, as industry leaders, identifies exclusive prospects, conducts due diligence on behalf of the client and allows direct access into the underlying investment at no extra cost. Private equity promises high profits, strategic impact, and portfolio diversity, all supported by a thorough due diligence procedure. Innovate has invested into sectors such as permanent crop agriculture, recycling, water and technology,
Agriculture - Private Equity Opportunity
There is R200 million to be raised for two large permanent crop farmers – Lucerne Agri and ANB Investments. Capital raised will be used to develop primary agriculture and net (protect) existing crops. Investment is diversified across 60+ farms, 3400+ hectares of land, and 14 different types of crops. Both farmers are 4th generation farms, vertically integrated and their primary focus is permanent crops which are less risky than livestock or seasonal crops. The lock-in period is 10 years, with an exit option after 5. Payments are distributed in the form of annual dividends, which will attract zero tax if invested in the correct structure.
Targeted Return P. A | 17% – 21% IRR |
Asset Class | Private Equity |
Time Horizon | 10 years with 5 years early exit option |
Return Classification | Dividends |
Distribution Frequency | Annual |
Security | 40% of investment is Pref Shares. Farmers are sizeable and experienced which reduces risk |
Diversification Factor | 65 Farms, 14 types of crops, and 3400+ hectares of farmland |
Offshore - UK Property Loan Note
UK Fund is the fundraising and investment arm of a Large UK Property. Development Company. They are offering sophisticated retail investors a Loan
Note which is redeemable after two years. The capital raised via the loan notes will be used by them to develop residential and commercial properties in the United Kingdom, to sell after completion. The reason they need the loan notes is to help secure property opportunities and progress the schemes as per their requirements and at pace. Investment is secured with a loan note and a first legal charge over properties purchased. The risk is diversified property development risk. There are zero fees incurred by the client.
Targeted Return P. A | Fixed: 10% – 12% Simple Returns in GBP |
Asset Class | Private Equity |
Time Horizon | 2 Years |
Return Classification | Interest |
Distribution Frequency | Bi-Annually or End of Term |
Security | Loan Agreement, first legal charge over properties purchased, and independent security trustee |
Diversification Factor | Used for multiple developments in the UK |
