Strategy
STRATEGY
Early Stage companies present the greatest opportunity at the greatest risk. To guard against this greatest risk, RWE presents a unique strategy that requires patience and diligence. Our principal objective is to provide investors with a high level of sustainable income, along with potential for capital appreciation. For our entrepreneur, we provide steady income, and the opportunity to earn along with investors as the business earns. We give each our clients, investors and entrepreneurs a complete transparent game plan to success.
For investors, balancing the investment in enhanced high-yield funds offers a cost-effective method of reducing the risk of investing in high-risk securities. Diversification and careful due diligence are particularly important in these investment areas.
Using proven managers, RWEexpects to invest a substantial portion of its proceeds from investment in high yield convertible debt securities. These debt securities will be subject to very stringent criteria that guards significantly against downside risk. Funds that are not issued using our proprietary convertible debt format will be invested primarily in high-income equities including income funds and other income bearing investments.
We expect annual distributions between 8-15% on our income-based investments. In the event stock is issued or other equity investments are distributed to the partnership, each unit holder will receive a distribution proportional to his/her contributions.
Funds are created to own a broad array of assets with long useful lives and predictable and reliable cash flows. High yield debt securities offer attractive risk-return characteristics and provide individual investors an opportunity to participate in an asset class that they have not generally been able to access.
The General Management of the fund will be accomplished by the General Partners this includes mentoring and monitoring all early stage company clients and maintaining the records and the funds pursuant to the terms of all issued convertible debt. In exchange for service fees, General Partners will prepare companies for presentation to investment banks and our Select Committee. All investments in early stage companies will be a subject to the Select Committee’s approval.
