What does Indigo Funding do?
Indigo Funding is a private investment company that places equity and short-term debt investment opportunities with Indigo Funding investor partners. The process is referred to as Direct Private Placement and enables Indigo Funding to syndicate an opportunity through either investor participation or the placement of securities under U.S. Securities and Exchange Commission private offering exemptions such as those found in Regulation D. Because the Indigo Funding managed investment company independently raises capital to invest in a sponsored project the sponsor is insulated from traditional fundraising activity and expense. While the investment company placement process is not always successful, the monetary or other risk for a sponsor is extremely low given the way the Direct Private Placement program is structured:
- Extensive accredited investor base
- No application fees
- No pre-placement due diligence fees
- No placement expense
- No requirement of exclusivity – a sponsor may continue to pursue other funding options
- No requirement for a sponsor to proceed past placement
- A partial-placement investment option
Who are Indigo Funding investor partners?
Indigo Funding has a large network of investors who have partnered with Indigo Funding because they want to invest in good opportunities. This investor network is proprietary, worldwide, and the result of years of personal research, marketing, and contact by Indigo Funding’s director. Indigo Funding investor partners include wealthy individuals and families, trusts and foundations, funds, banks, companies, and other institutions. Many of these investors are not known or accessible by the general public and Indigo Funding’s accredited investor network is continually expanding. In addition to its investor partners, Indigo Funding has an exhaustive database of other, primarily institutional, investors.
What is the Direct Private Placement process?
A "Sponsor" with a funding "Project" submits a Project Funding Application along with any supporting documentation to Indigo Funding; Indigo Funding will review the Application and either accept or decline the Project; if the Project is accepted, Indigo Funding will issue the Direct Private Placement Consulting Agreement; once initial terms are agreed upon, Indigo Funding will conduct a preliminary due diligence investigation of the Project, outsource the preparation of the private placement memorandum, and present the investment opportunity to its investors. Further detailed information is provided below.
*Indigo Funding does not require an up-front due diligence fee before committing to and working on a Project. The private placement memorandum will be created and will be a Sponsor's only pre-placement expense if the Project is accepted.
Who should submit a Project Funding Application?
Any Sponsor with a competitively-attractive and financially-sound real estate, business, hotel, casino, energy, marine, mining, agriculture, or entertainment Project – in need of acquisition, development, or re-positioning equity capital or short-term debt financing – should consider submitting a Project Funding Application to Indigo Funding. Projects will be considered from any country (subject to investment restrictions) and there is no minimum or maximum investment size.
How much money can Indigo Funding access?
Indigo Funding has direct access to over a billion dollars through Indigo Funding investor partners.
Is every Direct Private Placement successful?
No. Sometimes an Indigo Funding investment company only places part of the investment* and sometimes it does not place any of the investment; however, Indigo Funding bears almost the entire financial risk that a placement will not be successful.
*In the event of a partial placement, the investment company will offer to proceed, via a Letter of Intent or Letter of Conditional Commitment.
What determines whether my Project will be accepted?
Indigo Funding does not accept all projects. The acceptance decision is based upon financial factors, Project position relative to competition, aesthetic considerations, Indigo Funding’s evaluation of current investor partners’ objectives, and other factors. While acceptance is not a guaranty of placement, Indigo Funding only makes money if the Direct Private Placement is successful and the funding is finalized.
What is the minimum equity and/or debt investment?
There is no minimum equity investment or loan amount.
How long does an equity investment take?
An equity investment will be scheduled to take no longer than 80 days to finalize: 10 days for preparation, 45 days for placement, 15 days for final due diligence, and 10 days to close. This period may be extended if necessary by agreement of the parties.
What will be the terms of an equity investment?
Equity participation, management, and ownership will vary depending upon the proportion of capital invested to total equity and the overall projected outcome for the Project. Most equity investments require 10-50% ownership. You should anticipate an equity partner will usually require a preferred yearly internal rate of return on investment of from 12 to 24 percent with scaled income participation as profits increase. Buy-out and buy-down provisions may be permitted.
How long will a debt investment (loan) take?
A real estate secured debt investment, or loan, will be scheduled to take no longer than 65 days to finalize: 10 days for preparation, 30 days for placement, 15 days for final due diligence, and 10 days to close. This period may be extended if necessary by agreement of the parties.
What will be the terms of a loan?
Debt funding secured by real estate usually involves a period of 3 years or less; yearly interest rates greater than those of commercial banks but less than those of "hard money" lenders (usually between 12% and 17%); interest-only payments or payments including long-term amortized principal; a scaled prepayment penalty; and possible profit participation.
Can I expedite a funding request?
No. Indigo Funding works as quickly as possible to place the investment.
Are there any placement expenses?
No. If your Project is accepted, Indigo Funding will bear the entire work/expense/risk related to formation of the investment company and the issuance of private securities.*
*The legal fees related to a typical private securities placement are usually in excess of $10,000.
Are there any fees?
Yes. Indigo Funding will be compensated 1-3% of the amount raised during the funding round as a consulting fee. This fee is payable after closing takes place. Indigo Funding only receives payment after SUCCESSFULLY raising capital.
Does Indigo Funding disclose information?
No. It is Indigo Funding's firm policy is to maintain absolute confidentiality with regard to investors, projects, companies it manages, and investments. When considering the rationale behind Indigo Funding's confidentiality policy it is important to keep in mind that (a) you have no risk; (b) Indigo Funding does not act as a broker and does not invest directly into projects; (c) there will be one company responsible for your very specific Project and this company will not have any investment history; and (d) the Direct Private Placement is through Indigo Funding and one or more Indigo Funding investors with varied investment experience.
Confidentiality
All Project submission and investment information is kept confidential. Neither Indigo Funding nor other entities will release information about investors, investment companies, or transactions.