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Why Partner with IVI? Reason #2:
Improve Total Returns
Investors mistakenly use venture loan and royalty based schemes to ‘sweeten’ returns vs. implement as a second-generation solution to penetrate new investment niches, earn equity-like ROI and improve liquidity. It was this latter solution IVI delivered to the Federal Business Development Bank of Canada (C$3 Billion in assets) for financing Canadian firms underserved by commercial banks and local venture funds.
The Bank committed C$100MM to establish venture loans as an asset class equal in status to debt, guarantees and venture capital.
IVI's contributions included:
- Created the investment process to transact deals. Educated staff on the unique attributes of customer needs so the product would not cannibalize business from other Bank products
 Increased efficiency of staff to profile clients, sell features and benefits as sales messages that overcome customer preferences for competitive investment products- Trained staff to structure venture loan investments as a combination of debt/royalty. Negotiate terms, conditions and covenants that protect long-term returns when a firm grows slower-than-expected vs. be a victim of risk that erodes ROI
- Educated staff on the common mistakes that skilled investors inadvertently make in deal analysis and structuring, and solutions when transacting venture loan investments
- Specified the qualitative monitoring criteria in marketing, product development, human resources and operations that snapshot tomorrow's health of an investee company today, and provide a 12-18 month lead time for portfolio managers to effect a proactive response
Consider IVI as your investment advisor and partner in planning and executing international private equity schemes. We can help you avoid the learning curve costs that skilled investors inadvertently incur when executing new investment programs.
Contact IVI to discuss your needs.
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