How It Works?
BSEP Plus Collateral Group (BPCG) creates “investment grade” collateral for Small & Medium Sized Businesses (SMBs), Investment Funds (IFs), and Single Family Offices (SFOs). The Balance Sheet Enhancement Platform (BSEP+™) is a “proprietary” Business Method back office solution that makes SMBs more “bankable,” provides “principal protection” for IFs, and provides Education Planning capital solutions for SFOs.
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This is How a Typical Scenerio Works
a. Investment Fund X receives a ($5.0M) capital raise request from Company Y;
b. Upon initial review and diligence, Investment Fund X determines Company Y is a “high growth, high risk” opportunity;
c. Investment Fund X is reluctant to invest capital in Company Y, because of its lack of collateral and high level of risk;
d. Company Y retains BSEP Plus Collateral Group to create, model, and administrate the BSEP+™ principal protection collateral instrument over the term for the benefit of Investment Fund X on behalf of Company Y;
e. Company Y wraps the BSEP+™ principal protection collateral around its current business model, creating an “enhancement” to its balance sheet and a “hedge” against its possible failure to perform;
f. Company Y “re-submits” its capital raise request to Investment Fund X with the BSEP+™ principal protection collateral included in its due diligence package;
g. Investment Fund X receives a ($10.0M) capital raise request from Company Y because the BSEP+™ principal protection collateral requires Investment Fund X to “double down” on its investment capital request, ($5.0M) for Company Y and ($5.0M) for the BSEP+™.
h. Investment Fund X gains more comfort to invest in Company Y because Investment Fund X can ensure the recovery of its ($5M) principal investment with the BSEP+™ principal protection collateral and discover its tax deferral features can create additional revenue for the fund;
i. ($5.0M) is allocated to Company Y’s USE OF FUNDS from its original capital raise request in accordance with its terms and conditions with Investment Fund X;
j. ($5.0M) is allocated to the creation and administration of the BSEP+™ principal protection collateral under the management and control of Investment Fund X;
k. The ($5.0M) capital that is allocated for the BSEP+™ principal protection collateral is projected to double in year 6 to ($10.0M); this represents the
compounded creation and protection of Investment Fund X’s principal;
l. Worst Case Scenario: If Company Y defaults, bankrupt or worst, Investment Fund X is assured the recovery of its principal investment in Company Y and retains ownership of collateral and (its current value) for liquidation or portability to another high-growth, high-risk opportunity;
m. Best Case Scenario: If Company Y performs and exceeds expectations and/or is sold, Investment Fund X has created a win/win/win acquisition to its portfolio; Investment Fund X still retains ownership of collateral and (its current value) to remain as Company Y hedge or for portability;
n. Upon closing, collateral is “assigned” to Investment Fund X under its management and control (protected from 3rd party creditors) in accordance with the terms set forth with Company Y;
Request A Copy Of The Overview Below
BSEP Plus Collateral Group (hereinafter referred to as “BPCG” or “the Company”) is pleased to present the Overview presentation regarding the Balanced Sheet Enhancement Platform (BSEP+™) for Small & Medium Sized Businesses (SMBs), for Investment Funds (IFs), and , Single Family Offices (SFOs). The BSEP+™ can be structured to make SMBs more “bankable” for funding! It can provide principal protection and risk mitigation for IFs, and provide a means to pay for college tuition with no repayment obligation for SFOs.