BANKABLE CERTIFICATES AS AN INSTRUMENT FOR VC CO-INVESTMENTS
You source the deals, we handle the rest
Onboarding professional investors (both individuals and institutional) through traditional SPVs can be a complex, costly, and bureaucratic process.
BONART's bankable certificates are quick to launch (3 to 5 days) and cost effective (~2% of AUM).
BONART's bankable certificates leverage the existing banking infrastructure for the investment (subscription), hold and divestment (payback). This approach has multiple benefits:
Simplicity of investing. No documents to sign. Investors receive a term-sheet and ISIN number and purchase units of the product via their bank or broker, in the same manner as they buy stocks and listed products.
No need for additional KYC or AML on investors; the subscription is processed through regulated entities familiar with both the investor and our product. This saves your organisation from the burden of maintaining a high-cost legal compliance structure and mitigates the associated compliance risks that accompany direct investments.
NAV updates are baked into our process, giving investors tangible updates during the investment lifetime.
Seamless exit / liquidation process. When the underlying investments mature, the certificates can easily be redeemed by the sponsor, in return for proceeds / performance.
“Investing into BONART's certificates is the same process as buying a share of Nestle or Novartis”
Five simple steps to create your investment vehicle
Define your investment strategy: curate your custom portfolio of any size and theme
Set terms and fees (upfront ? management fee? carry ?)
Invite professional investors without the need for additional KYC and AML assessments
Collect subscriptions through the banking system - investors simply call their broker and place an order
Deploy capital and manage the lifetime of the strategy
BONART is regulated Swiss Asset Management firm owned and operated by the Barack family.
Boaz Barack, Founder and CEO of BONART, was previously a senior bankers at UBS and Credit Suisse and is widely considered to be a pioneer of innovation in financial services.
Our diverse team of experts is always eager to engage and help you structure the financial product that fits your investor’s needs.
Our Instrument (Certificates)
Actively Managed Certificates (AMCs) are investment vehicles that combine the features of actively managed funds and structured products. They are designed to provide investors with exposure to a professionally managed portfolio of assets or strategies (such as a Bridge round, Convertible, Co-Investment), while offering the liquidity and transparency associated with traditional exchange-traded securities.
Actively Managed Certificates offer a swift, adaptable, and cost-effective method of offering investment strategies to professional investors.
A private structure is established for each certificate. Every structure is its own, independent legal entity that is comparable to a balance sheet. Through the issuance of the vehicle it receives funds from investors on the liabilities side. The asset manager (BONART, in partnership with you, the Sponsor) run the portfolio on the asset side of the balance sheet in line with their portfolio strategy. The structure is covered 1:1 by the assets and therefore bears no traditional issuer risk.
To learn more about such products, we recommend this article by Julius Baer.
Securitisation is the process of creating a bankable / marketable financial instrument in order to invest in a defined asset or asset pool. These transactions gained particular attraction in the 1970s, starting with the financing of mortgage pools. From this point on, securitisation has evolved to include a more diverse array of underlying assets. These can be as varied as receivables, debt, shares, commodities or intellectual property, or real assets like art, infrastructure projects or real estate.
Today, securitisation transactions have not only grown massively in developed markets, but also have evolved to become an important part of the global capital markets, particularly in the European and US markets.
For more on securitisation, we recommend this article by Pestalozzi.