STRUCTURED DEBT INVESTMENT OPPORTUNITIES
Disclaimer: This document provides a summary of general information in respect of Privilege Wealth PLC and does not constitute an offer for sale or subscription of shares or other securities or services. This summary is made available on a private and confidential basis and by accepting this summary the recipient agrees to keep confidential all information contained in it. The content of the summary has been prepared by Privilege Wealth PLC and is being made available in good faith. No directors or officers of Privilege Wealth PLC, Privilege Wealth Management Limited, Helix Investment Management or their respective advisors will have any responsibility or liability whatsoever in respect of the statements made herein or omissions here from or in respect of any other written or oral communication transmitted or made available to the recipient in respect of same. All and any references to insurance, insurance cover, or capital-protection are purely descriptive in nature and non-contractual; the only document to be relied upon in this respect is the respective insurance policy itself. This document is subject to amendment. Any subscription for securities issued by Privilege Wealth One LP or Helix Securitisation Fund Compartment “Privilege Wealth� may only be made pursuant to the terms and conditions of the relevant subscription agreement and any related information memorandum.
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Contents Our background Corpor ate structure The opportunity Our products Risk factors Insur ance Benefits Partners Contact
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Our background Privilege Wealth PLC is a UK registered Public Limited Company. It offers a diverse range of multi-currency, structured debt securities which pay superior rates of interest to investors, with relatively low risk profiles. Responding to the shortage of capital available
within
our
market
sector,
Privilege Wealth enters into exclusive and on-going funding agreements with financial institutions such as:
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•
Micro lending companies
•
Short term “line-of-credit” lenders
•
Mezzanine finance companies
•
Asset Backed lenders
•
Peer to Peer arrangers
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Our structure
Privilege Wealth PLC is a UK Registered, London based privately held Public Limited Company.
GIBRALTAR BASED LIMITED COMPANY
USA BASED CORPORATION
EUROPEAN OPERATIONS
HOLDS ALL USA AGREEMENTS, BANK ACCOUNTS, STAFF CONTRACTS, ACH & SECURITY ARRANGEMENT AND LICENSES
GENERAL PARTNER OF PRIVILEGE WEALTH ONE LP SALES & MARKETING FOR GROUP
PANAMANIAN ASSET HOLDING COMPANY
PANAMA BASED CALL CENTRE OPERATION
PROVIDES SERVICES AND RECEIVES ROYALTIES AND FEES FROM PRIVILEGE DIRECT CORP
PROVIDES MARKETING & LEAD SERVICES EMPLOYER OF SALES AND ADMINISTRATION AGENTS
USA BASED FINANCIAL TECHNOLOGY BUSINESS HOLDS ALL PROPRIETARY & INTELLECTUAL PROPERTY & THIRD PARTY SOFTWARE RESEARCH & DEVELOPMENT DIVISION
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The opportunity With ever more lenders entering the marketplace, the need for liquid capital to lend is at an all time high. Privilege Wealth has secured exclusive on-going funding agreements to supply loan capital to a select group of institutions that meet our strict ethical, procedural, administrational and technological criteria. The resulting contractual arrangements between
Privilege Wealth and their
source-borrowers
form
an
excellent
synergistic relationship; both relying on the other for growth.
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Shortage of available capital Demand for short term finance is extremely strong and growing year on year. Currently the market sector distributes in excess of $50 billion per annum and all indicators point towards a continuation of that trend. Currently, capital demand far exceeds supply.
Real-time data analysis Privilege Wealth exclusively contracts with lenders who have entered into a software licensing agreement with Fintech SDG. This ensures that the reporting and analysis of credit ratings, ageing analysis, default rates and other algorithmic real-time data remain state-of-the-art.
Superior returns In any market sector where demand exceeds supply, returns are above average. This, combined with security over capital loaned in excess of 400%, leads to an extremely high return on investment and comparatively low risk.
Mutual dependence A synergistic relationship has developed between Privilege Wealth and the lenders. The exclusive relationship means that both need the support of the other to grow.
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Methods of investing EMTN-A
EMTN-B
EMTN-C
A USD denominated secured Medium-Term-Note aimed primarily at institutional, authorised and regulated firms, and high-net-worth, sophisticated or experienced investors requiring an insured income producing financial instrument.
A GBP denominated secured Medium-Term-Note / corporate bond aimed specifically at the investment and pension market, and in particular; SSAS, SIPP, OPS, QROP, Provident, Credit Union and collective schemes.
An EUR secured Medium-TermNote aimed at institutional, authorised, and regulated firms, high-net worth, sophisticated and experienced investors requiring an income producing financial instrument with annual capital liquidity.
Loan Note listed on the Bermuda exchange (recognised exchange in terms of MiFID and FCA).
Loan Note listed on the Bermuda exchange (recognised exchange in terms of MiFID and FCA).
Loan Note listed on the Bermuda exchange (recognised exchange in terms of MiFID and FCA).
USD Only
GBP Only
EUR Only
60 months only
60 months only
60 months only
Redeemable at end of term
Redeemable annually
Redeemable at end of term
12% Interest
9.85% Interest
12% Interest
Paid Quarterly
Paid Annually
Paid Quarterly
95% of Capital insured
95% of Capital insured
95% of Capital insured
Tradeable
Tradeable
Tradeable
ISIN XS1211591398
ISIN XS1211596942
ISIN XS1211597593
FCA - “Standard Asset�
*For insurance description please see page 14.
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MCLN-D A direct multi-currency (GBP-EUR-USD) Loan Note qualifying in terms of section 21b of the FMSA 2000, only issued to certified High Net Worth persons within the meaning of Article 48 of the Financial Services and Markets Act (Financial Promotions) Order 2005 (FPO) or self certified sophisticated investors within the meaning of Article 50A FPO or who have complied with the provisions of Part 1 of Schedule 5 of the FPO or self certified sophisticated investors being persons who have complied with Part ii of Schedule 5 of the FPO. 95% of Capital is insured against loss*. GBP-EUR-USD | 12-60 month term | Redeemable every 12 months (with 30 days notice) | Paid Quarterly | 95% of Capital insured
FTDA-E A direct multi-currency (GBP-EUR-USD) Fixed Term Dividend Agreement (profit-share) between the Limited Partner and the General Partner (acting for and on behalf of the Partnership). The FTDA is a closed-end 12, 36 or 60 month dividend contract consisting of 4 quarterly payments and the return of share capital at end of term. Uninsured. A Sharia compliant version is available. GBP-EUR-USD | 12-60 month term | Redeemable every 12 months (with 30 days notice) | Paid Quarterly *For insurance description please see page 14.
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Investments via third parties Privilege Wealth receives inward investment via many different financial instruments, structures and institutions, including but not limited to the following:
Munio capital Munio Capital invest into Privilege Wealth One LP via their strategic bond fund. Munio Capital is only open to High Net Worth, Sophisticated, Experienced and Restricted Investors. www.muniocapital.co.uk
Listed bond & funds Privilege Wealth maintains a number of contractual relationships with funds, trusts, listed companies, family offices, asset managers and other financial institutions.
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Eastbridge Investments PLC is a UK Aim listed company who have adopted an investing policy to include asset backed or insured debt and equity instruments which make regular cash payments - focusing principally on the retail finance sector. Eastbridge intends to issue equity to fund the purchase of these instruments and, through an intermediary, has a preference towards acquiring EMTNs A, B and C. With minimal corporate overheads Eastbridge believes that it will be able to a large degree translate its yield on debt investment into shareholder returns.
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Investment security
Investment into Privilege Wealth
1st charge over partner loan book
*For insurance description and policy document please see page 14.
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Step-in rights to takeover loan collections
Insurance to protect 95% of Capital*
Whilst Privilege Wealth has gone to great lengths to mitigate investment risk; it is prudent to point out the key potential risks as with any other investment product
Risk factors
Economic
A severe economic downturn could increase the number of loans that default, and in turn the lenders might find it difficult to repay our loan interest. Given the disparity between the interest charge to the consumer and the interest paid to Privilege Wealth, most lenders would need to experience a default rate in excess of 70% to endanger capital; at which point step-in rights and insurance would be activated.
Legislative
Legislation outlawing short term lending or capping interest rates would affect the profitability of the business model. Any such legislation is highly unlikely to be retroactive, meaning that Privilege Wealth would still be able to collect all capital and interest owed up until such change in the law. The vast majority of lending legislation is passed on an individual state-by-state basis and not at a federal level. In this instance Privilege Wealth would review its business model.
Fr aud
An insurance policy covers 95% of the capital invested*. In the event of wrongful act or fraudulent activity by Directors / Managers or the lending partners themselves, or a payment default, the insurance would become active. The Directors of Privilege Wealth PLC are experienced businessmen with a strong track record of Corporate Governance and regulated financial markets activity. *For insurance description and policy document please see page 14.
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Insur ance Privilege Wealth and its associated insurance providers have undertaken a risk mitigation assessment to seek to identify and address the key risks which would give rise to a default event. Subsequently an insurance program has been designed to provide cover against those risks. The insurance is based upon Investment Managers Insurance and features cover for “Wrongful Act” and “Capital Shortfall” based upon 95% of the Capital Value of covered investments. We call the product “Capital95”. Funds are deployed at different times and maturities via different financial channels. The funds deployed range across different stages of investment (incoming, outgoing or invested). This spread and diversification of the risks renders it very unlikely to suffer a total loss of all investment funds due to any one individual event. For example “cyber-crime cover”, “wrongful act “ or “Capital Shortfall cover” would unlikely be for exposure to the full 95% of all funds invested by Privilege Wealth, and risk is assessed based upon the maximum risk exposure that Privilege Wealth and its insurers deem possible in that individual event or series of events. In this way an insurance matrix is constructed to surround and protect Privilege Wealth funds through all stages of the business process.
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LOW RISK HIGH RETURN The
structured
backed
by
loan
insurance
notes, and
collection rights, in combination with the high percentage of capital
cover
significantly
reduces the risk of investing into this sector. The resulting superior
returns
generated
allow us to pay a high rate of interest to our investors.
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Summary of benefits • High annual returns for investors from 9.85% • Insurance to 95% of capital value • Capital secured on loan books with step-in rights in the event of default • Fully tradable securities, listed on various international exchanges • ‘Standard Asset’ therefore eligible for pension investment EMTN-B is specifically aimed at the pension market due to the fact that it is classed as a “Standard Asset” and listed on a “Recognised Exchange”. The issuer provides liquidity in that it will redeem annually on each anniversary with 30 days notice. This product is therefore available to be invested into through many pension wrappers and other tax efficient vehicles including SIP, QROPS, OPS, ISA, SSAS and SAPS.
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Eligible for direct Investment from: High net worth, Sophisticated, Experienced & Restricted Investors Institutional Investors Hedge funds Pension funds
Introducer network
Limited partner status
Individuals or corporate entities
The ‘General Partner’ of a Gibraltar
wishing to partner with Privilege
Limited Partnership acts as the
Wealth and generate profitshare
controlling,
by introducing investors into our
managing body of the Partnership,
structured products may do so
similar to the Board of Directors
by applying to become a Limited
of a company. ‘Limited Partners’
Partner of Privilege Wealth One
can either be individual investors,
LP.
introducers or service providers,
All our Limited Partners can
would
administering
be
receive profitshare for introducing
and
investors to our suite of products,
‘shareholders’
even if that investment is made via
limited
third parties.
Privilege Wealth Management Ltd.
in
company
considered
&
a
as
traditional
environment.
is the General Partner of Privilege Wealth One LP.
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Becoming a limited partner Limited Partners would be expected to introduce a minimum of GBP 1m over the first 12 months of engagement and will be assessed according to the potential to achieve that. Initial applications are made via the Privilege Wealth website at:
www.privilegewealthlp.com
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Our website
By telephone
Partnerships
To register and find out more
To discuss our products
If you wish to become a Partner
www.pwplc.com
in more detail
partners@privilegewealthlp.com
+44 (0) 203 582 3810
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Head Office
6-9 THE SQUARE STOCKLEY PARK, UXBRIDGE, UB11 1FW UNITED KINGDOM
phone +44 (0) 203 582 3810 info@pwplc.com
www.pwplc.com Product Brochure December 2015