Portfolio Management

Risk Management

Management has created, and will continuously develop, significant internal risk management protocols and makes MCA and Certificate investment decisions based on real-time performance data about its merchant customers. In addition, because the MCAs generally require automated payback either each business day or weekly and allow for ongoing data collection, Management expects to obtain early-warning indicators that provide a higher degree of visibility not just on individual MCAs, but also on macro portfolio trends.

Strategy

A majority of the Fund’s (and as such, the Certificate’s) capital is projected to be deployed whereby the Fund will participate as a syndicate member in a MCA in which there is a lead investor, and the Fund’s contribution will represent 5-20% of the individual MCA. Management anticipates investment holding periods for individual MCAs of three to seven months, and as capital is returned daily or weekly on an individual MCA, Management intends to continuously redeploy capital, thus achieving multiple layers of compounding effect in individual and portfolios of Certificates.