Alpha have teamed up with a Luxembourg company, GFH Group, specialists in establishing highly regulated umbrella funds, fund administration and fund distribution to bring to the market Alphas own specialist funds range. The GFH route offers complete transparency and protection for the investor under Luxembourg regulation
Alpha Special Situations fund.
With a core focus on companies in the later stages of preparing for a public listing and other high value propositions within listed equity, this fund will be target as small investments at significant discounts to the open market price.
Our corporate funding strategy incorporates 3 main uses of proceeds:
Stage A (pre IPO)
A company is funded through its early stages of corporate development in order to provide working capital for it to build corporate assets and ensure internal process control. A company who has already commenced the ‘go public route’ possible contribution to the ‘go public’ fee schedule enabling the company to achieve public status without a drag on the cash flows and capital. We will work with our partner company, GE Partners, to help prepare the company to be in the best possible shape for an IPO thus providing maximum gain for the fund. Investment at Stage A will be secured convertible debt with equity enhancements.
Stage B (post IPO)
To provide a company with the required capital to grow revenues through either its product portfolio or through regional expansion. Companies looking for stage B finance in order meet current liabilities will not be entertained, a clear and defined growth plan will be key to any decision process with expected likely discount target to current bid price of any security of 25 % to 50%. An M&A strategy could also be considered here.
Stage C (Private)
Private ventures with a defined asset valuation often offer tremendous growth potential without the need or potential for a public listing at this stage of a company’s development, but with a targeted IPO/ listing at some point in the next 24 months. Any investment in Stage C companies will be debt with equity combined. A company’s ability to service the debt alongside any securable assets will be key in the decision making process.
Anticipated spread of funds:
- Stage A 50%
- Stage B 25%
- Stage C 20%
- Cash 5%
The table below outlines the various phases at which we will consider an investment:
|Phase||Investment Interest||Investment Prerequisites|
|Idea only||None||Not applicable|
|Seed||Low||Business Plan, Financials and beta customer|
|Start-up||Medium||Business Plan, careful cash management, min. 1 major customer contracts|
|1st Round/ Series A||High||Running business for min. 12 months, revenue, breakeven 18 months|
|2nd Round/ Series B||High||High margins, plus protected IP’s|
|3rd Round/ Series C||Medium||Mid-term operational plan, exponential proven growth prospects, regional expansion|
|Later rounds||Low||Not applicable|
|Mezzanine Stage||None||Not applicable|
Alpha South East Asian Opportunities Fund