ROYAL CAPITAL FUND structureMain activitiesMain activities of ROYAL CAPITAL FUND have realization via controlled specialized funds of direct investment. Each fund has its own tokens, what leads to effective management, risk diversification, and attracts additional investment for certain activities.
ROYAL M&A FUND. The fund's investment model in the field of mergers & acquisitions is based on synergy research; research of underestimated companies, as well as companies, which face lack of funding and have perspective chances for developing and optimizing; increasing its values and selling to strategic investor. An additional effect can be achieved with the use of debt financing when structuring the transaction. Tokens of M&A fund ensure management effectiveness and gain investment attractiveness for financing projects in the field of M&A. Tokens of the mergers and acquisitions fund ensure effective management and attraction of additional investments for financing M & A projects.
ROYAL DEVELOPMENT FUND. The fund specializes on investment in perspective construction projects and real estate objects. Investment model of the fund is based on issued REIT-tokens which lead to effective management, additional financing, liquidity, and give opportunity to invest with no restriction on amount and term. REIT's owners have profit due to increasing price of fund's shares, which shapes out of total profit by realization of developments projects and real estate rental price. Tokens' price depends on assets value in fund portfolio. The fund doesn't have minimum amount of investments or minimum required participation period, so an investor can sell tokens any time to the other member of market. The increased profitability is formed due to the fact that the fund organizes construction and realizes the real estate at market value, which positively affects the profit; besides, the fund can attract financing in the form of lending, which creates leverage and increased profit on equity.
ROYAL VENTURES FUND. Venture investment is one of the most prospective types of financial activity. The fund’s investment model is focused on financing venture projects, mainly oriented on developing of blockchain system and new technological solutions in financial sphere. Technological development has a specific position in the modern world; technologies provide an advantage, helping to take leading positions in the market. By investing in venture capital projects, we gain access to advanced technological solutions in this field, which gives a competitive advantage. The advantage of this model is also the ability to use new technological solutions in related areas of the company's activities, which gives product promotion and eliminates the need to create its research and development department.
EXCHANGE TRADED FUNDS. ETF is index investment fund, its shares can be traded on stock market; in other words, ETF is a portfolio of securities traded on the stock market. The tokens of the index investment fund make it easy to invest in all kinds of securities included in portfolio of ETF. The profitability of the fund would depend on the rate of its assets. This allows to diversify assets and reduce risks.
Related ActivitiesOrganization and support of ICO
Organization and support of mergers & acquisitions transactions
Financial and investment consulting
Development of infrastructure for purchase and sale of tokens
The organization of issue of tokenized financial instruments
MonetizationThe profit from the implementation of investment projects
Funds management commission
Commission for the organization of transactions in the field of mergers & acquisitions
Commission for the organization of ICO
Advisory fees
Commission for purchase and sale of tokenized financial instruments on the market
Commissions for success for funds management
Private equity fundsMergers & AcquisitionsM & A activity is one of the main activities in the company. As an investment company, we provide a full range of services in this field. We can work as direct investors or accompany the transaction data.
Mergers & acquisitions of companies is a special kind of investment activity in business and capital, which gives an effective result due to synergy. The specific of mergers & acquisitions deals is total profit growth due to the merger of companies, that is, what 2 + 2> 4. Another feature is divestiture of company units as separate individual units (carve-out, spin-off). As a result, a summarized value of individual companies exceeds the previous value.
Our approach to M & A is finding synergies, underestimated companies and companies that have lack of financing and prospects for further optimization; and increasing its value, and then selling it to a strategic investor.
The formation of synergies is possible due to the following points:
• Economy of scale and liquidation of overcapacity. When two competing enterprises have under-loaded production capacity. Buying a competitor, makes the production fully loaded. Due to increased production, the cost per unit of output decreases. The total cost is less than summarized costs of two enterprises before the merger. The second enterprise can be reoriented or sold.
• Economies of management costs and commercial costs. After a merger or takeover, a duplicate unit can be reduced (accounting, marketing, etc.)
• Purchase cost reduction. Association of companies that purchase the same products. Due to the large volume of procurement, the combined company provides suppliers with greater discounts than each company separately.
• Economy of research and development. Companies are working on the same new product, in fact they duplicate each other's work. One united company can reduce costs, without losing the technological advantage.
• Opportunity for staff costs reduction. There is a lack of productivity and excessive number of employees in some companies, as well as the existence of large benefits for trade unions. When staff is optimized, efficiency is improved.
• Financial synergies. Bigger companies can borrow money on more profitable conditions than smaller ones. By uniting two companies of the same rating we can get a company with better credit rating.
• Tax synergies. Uniting profitable company and loss-making company, we can consolidate tax payment. In this case, due to loss-making part of a company, we possibly can avoid some tax obligations if it has large accumulated tax loss.
• Wrong valuation of shares by the market. The strategy is based on the idea of the acquisition of underestimated companies.
Technological accomplishment. Tokens are issued for M & A. As an investor acquires a fund token, the issue of tokens is equal to the amount of investments, calculated to the current date.
Token value = assets value / the number of tokens issued.
Emission = investment / token value - commission.
The investment is used to finance venture projects. M & A tokens are based on fund assets. The withdrawal of funds are carried out by sale of tokens on the stock market to another investor, or the by sale of tokens to the fund, in this case the tokens are liquidated and recalculation is made for the current date. If the fund is unable to fulfill obligations to the investor, the fund repays its obligations to the investor as soon as it has cash-flow after investment projects done.
The fund takes an entrance / exit fee of 3% and management fee of 3% of the assets and 20% of the profit.
Real Estate Investment TrustREIT (Real Estate Investment Trust) - an investment fund aimed at financing development projects in real estate. Holders of REIT receive an income from the growth in value of the fund's shares, the profit from the implementation of development projects, and from the rental of real estate. The value of REIT tokens depends on the value of assets in the fund's portfolio. In this fund there is no minimum amount of investments and a minimum period of participation, an investor can sell tokens on the market to another investor any time.
The distribution of profit from development projects will be implemented as the project is completed. Token owners can sell the token any time, without waiting for the completion of the project, while the cost will increase as the project is fulfilled. The profit from the lease payments will be paid as dividends on a quarterly or annual basis, the decision is made by the board of directors.
Advantages of REIT in comparison with direct investment in real estate and alternative investments.
Liquidity. Compared with the direct purchase of real estate, investments in REIT shares have high liquidity. The owner cannot always sell the asset or part of the asset quickly and profitably. Owners of REIT tokens can always sell them (or part) to other investors on the market.
Purchasing power. REIT opens the opportunity to become an investor of large investment projects in the field of real estate via collective investment. The profit is distributed in proportion to the shares in the fund, but the income / investment ratio is the same for all.
High profitability. Real estate management, rental payments, profit from the construction projects, profit from the growth in value of assets - provide high returns to owners of REIT tokens.
Reliability. The risk of REIT bankruptcy is minimal (there wasn't a single case of REIT bankruptcy). because REIT is secured by the real estate they manage, and real estate management is their main activity.
At least 75% of the fund's profit is distributed among investors as dividends.
Technological accomplishment.Tokens of the REIT are getting issued. As an investor acquires a fund token, the issue of tokens is equal to the amount of invested funds calculated for the current date.
The value of the token = the value of the assets / the number of tokens issued.
Emission = investment / token cost - commission.
The investor's funds are directed to investments in the real estate market, the acquisition and management of completed objects, and the implementation of development projects. The tokens of REIT are based on the fund assets.
The withdrawal of funds are carried out by sale of tokens on the stock market to another investor, or the by sale of tokens to the fund, in this case the tokens are liquidated and recalculation is made for the current date. To ensure liquidity, there is a reserve of 3% of the fund's resources. If the number of applications for a return exceeds possible payments out of the accumulated reserve, and this reserve is spent out, the fund repays its obligations to the investor as soon as it has cash-flow after investment projects done. The fund takes an entry / exit fee of 3%, for management at a rate of 3% of the assets, and for success at a rate of 20% of the profit.
Ventures InvestmentVenture investment fund ROYAL VENTURES FUND is aimed primarily at financing of innovative high-tech projects for developing a system of blockchain technologies and innovative solutions in the field of finance. Venture projects are the driver of the modern technological process. Venture projects often represent new technologies that don't have analogs, products, and market place, that's why it becomes difficult to give fair estimation to project's prospects.
In view of many variables, this is associated with a high risk. In most cases an interesting product is launched, but there are no funds for its entering the market. The point of investment attracted is always a problem for start-ups. ICO is a new mechanism for attracting financing for venture capital projects at early stages of their development, due to which they can attract investment from a large number of previously unreachable investors.
ICO allows any person to participate in venture transactions without restrictions for the minimum capital, which increases efficiency, and ensures the cash-flow into the project. Blockchain simplifies the process of cooperation between investors and the company, while ensuring the share in the company in terms of token issued.
The fund invests in projects that have a minimally viable product, which is preparing to enter the market. The fund invests in start-ups attracting financing at the round no lower than "A" having a minimally viable product and the prospects for globalization and transformation into international business. The amount of investments in the project is from $ 1 million to $ 10 million. The investment term for the project is about 5 years on average. Decisions on the exit from investments are made by a team of fund managers. Based on fund managers decision, this might be either sooner or later, depending on an assessment of growth and market conditions.
Technological accomplishment.Tokens of the ROYAL VENTURES FUND are getting issued. As an investor acquires a fund token, the issue of tokens is equal to the amount of invested funds calculated for the current date.
Token value = assets value / the number of tokens issued.
Emission = investment / token cost - commission.
The investor's funds are directed to investments in venture projects. The tokens of ROYAL VENTURES FUND are based on the fund assets. The withdrawal of funds are carried out by sale of tokens on the stock market to another investor, or the by sale of tokens to the fund, in this case the tokens are liquidated and recalculation is made for the current date. The fund takes an entry / exit fee of 3%, for management at a rate of 3% of the assets, and for success at a rate of 20% of the profit.
Exchange Traded FundsETF(Exchange Traded Funds) is a financial investment vehicle, its shares are traded on the stock market, ETF is a portfolio of securities traded on the stock market. It's a relatively new instrument on the securities market. Over the past 20 years, ETFs have become one of the most popular instruments on the securities market, both for institutional and for individual investors, as it has several advantages:
1. Ease of trading and accounting - ETF funds are traded as standard shares;
2. Access to international markets from a standard brokerage account;
3. Transparency of the ETF fund's investment portfolio structure online;
4. The ability to implement both passive (index) investment strategies, and active management strategies, arbitrage pricing and hedging;
5. Low initial investment amount;
6. High liquidity - the ability to purchase and sale assets any time;
7. Wide diversification.
ETF gives opportunity to invest in all securities included in the relevant ETF, the profitability of fund depends on the rate of its assets. This allows to diversify assets and reduce risks. ETF is a universal instrument in the securities market. Now, with the development of the blockchain, new opportunities for investment are opening up. In view of the large trend towards ICO, there's an increasing number of tokens traded on crypto market. As tokens are financial instruments, this opens up new opportunities for creating ETFs and investments in the ETF on the crypto currency market. ETF has already proven its effectiveness on financial market and it's an excellent vehicle for investing. The crypto currency market opens additional opportunities for the development of ETF, this gives confidence that ETF as an investment vehicle on crypto currency market that will staidly grow.
Technological accomplishment. Tokens of the ETF fund are getting issued. As an investor acquires a fund token, the issue of tokens is equal to the amount of invested funds calculated for the current date.
Token value = assets value / the number of tokens issued.
Emission = investment / token cost - commission.
The investor's funds are directed to purchasing of tokens on the market. The tokens of ETF are based on tokens included in index. The withdrawal of funds are carried out by sale of tokens on the stock market to another investor, or the by sale of tokens to the fund, in this case the tokens are liquidated and recalculation is made for the current date. The fund takes an entry / exit fee of 3%, and for management at a rate of 3% of the assets.
We see a great potential in usage of tokens based on blockchain as an innovative financial instrument for the markets, and we target to make token a standard financial instrument, actively used on standardized platform. Despite the fact that regulatory framework hasn't been formed yet, governments of many countries are working on making the regulatory basis and principles for the relationships between market members. ICO opens up a whole new range of opportunities for investments in infrastructure projects, development projects, and venture projects. Blockchain makes the system global, available, clear; it simplifies cooperation between its users, and therefore it makes possible for private investors to work on large projects, which have been inaccessible before.
ROYAL CAPITAL FUND
