Alternative Capital Management

Alternative Capital Management

Project Cost: RM2,500,000

Amount Invested : RM50,000

Amount Required : RM2,000,000

Knowledge / Experience Required:
general management
strategy
finance
internationalisation

Proposed Investor’s Role: n/a

Industry: financial services

Project Stage: early expansion

EXECUTIVE SUMMARY:

Company History:

More than 10 years experience in the financial industry in Malaysia (Corporate Advisory, Corporate Finance, Corporate Restructuring, Corporate Affairs)
Completed MBA in University of California in US, as well as a full member of the Chartered Alternative Investments Analysts Association (“CAIA”).
Working and Network exposure in southern California (US) and southern British Columbia (Vancouver/Victoria).
Recently returned to Malaysia and started Kaia Capital Management in mid-2013.
Product / Service Description:

We are strong believers of ‘Alternative Capital Investment’ in financial markets.
Based on alternative investment (AI) strategies practiced in the US, we intend to bring in these know-how tools to Malaysian markets.
Instead of trying to outperform the Beta markets, we seek Alpha and ‘Alternative Beta’ returns.
Initial focus was on directional Long strategies but we have recently engaged in Long/Short strategies – in anticipation of more market volatility in the next 6 months.
xxx Capital Management is the vehicle.
Business Opportunity:

– Our USP is the usage of cutting edge ‘Alternative Investment’ (AI) tools and know-how.
– Our competitive advantage is sustainable since the portability of such Alpha and Alternative Beta returns is not easy (require a lot of quant research) to replicate and highly experential-based.
– Our key assets are both our AI knowledge and our AI network… globally.

Revenue Model:

– Returns are based on Alpha (non-market) and Alternative Beta (market but via AI strategies only).
– Returns are periodic (quarterly or half-yearly).
– Returns are based on cash profit realized via capital gains and dividend incomes.
– Superior returns are common in the AI world – as we apply non-traditional capital investment methods/strategies.
– Sustainability arises from the lagging effect of transferring knowledge from the developed markets (US/Canada/Euro) to the emerging markets.

Management Team:

– xxxx (CEO & Chief Investment Officer)
– xxxx (Chief Risk Officer)
– xxxx (Compliance Officer)
– xxxx (Fund Manager)

Current Status:

Initial research on suitability of certain AI strategies were done since 2008.
Application in Western (US) markets since 2009.
Recent Start-Up capital (RM50K) invested in Malaysian equity market since June 2013, with 2-month ROI of 11.9% (realized & unrealized gains).
Thereupon, private limited company xxx Capital Management Sdn Bhd) was incorporated.
Secures commitment by a Singapore investor for Seed Capital of RM100K, with target drawdown by 4th Quarter of 2013.
Need another RM2.0mio (Max) as next Funding Need (by 1H 2014) to access global markets and better prime brokerage rates (below 0.05%).
Funding Milestone:

– Depends on funding quantum.
– Depends on Investor(s)’ risk-return profile and appetite.
– Funding milestone to be discussed in due time.

Business Valuation:

– My Start-up of RM50K at par value.
– The Singapore investor of RM100K Seed Capital also at par value.
– For next funding stage, we are open to discussions on post-money valuation of either xxx Capital Management or another SPV (likely to be based on P/E ratio or dividend growth model).
– We are open but believe in being fair and equitable in creating win-win situation for all.

Expected Return On Investment:

Am looking at long-term annualised ROI of 8% per annum ABOVE a mutually-agreed benchmark index.

Investment Risk and Mitigation:

Market Risk, Volatility Risk, Counterparty Risk, Interest Rate Risk, Currency Risk, Time (Theta) Risk, Political Risk, Regulatory Risk, Macro-economic Risk.

Exit Strategies:

– Sell to Funds of Funds (FOFs)
– Sell to Family Offices (I have worked at two Family Offices of billionaires in Msia, with direct access to patriach/founder).
– First right of refusal on share disposal back to me.
– Distribution of highly liquid assets (Cash + Marketable Securites), and voluntary winding up.

 

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