westbrooke
income plus

• Investors seeking stable, quarterly high-yield income flows
• Investors seeking an investment with a positive social impact
• Medium-term investment horizon *
• Low-risk profile with a capital preservation focus

* Initial investor lock-up of 12 months with a 6-month redemption notice period thereafter which can be given at the end of February or August annually.

• The Westbrooke SNN Income Plus QI Hedge Fund: investors own units or participatory interests in a Collective Investment Scheme in Hedge Funds (“CIS”), which is regulated by the Financial Sector Conduct Authority (“FSCA”).
• The Pref: investors will subscribe for shares in an unlisted South African company through a private placement memorandum or through a company prospectus registered with the Companies and Intellectual Property Commission (“CIPC”).
• Segregated mandate: investors will become a limited partner to a bespoke En Commandite partnership set up by Westbrooke.

CIS and Pref Structure:

• The liquidity of the underlying loans is managed by the investment team to ensure that if an investor places notice there is liquidity in place to redeem the investors CIS units or shares.
• Both the CIS and the Pref operate on a 6-month notice period following the respective initial lock-up periods, which provides the investment team with adequate time to generate cash for investor redemptions as and when they fall due.
• Liquidity can be generated through one or a combination of: (1) allowing shorter-dated loans to be repaid, (2) sale of the loans to other investors and (3) cash management. Although there are “gating” provisions, it is the intention that these would only be used in exceptional circumstances.
• All transactions are assessed against the upcoming redemptions to ensure that the liquidity risk is appropriately managed, and that any asset / liability mismatch is reduced to the extent possible.

Segregated mandate:

• The liquidity of the segregated portfolio will depend on the term of each underlying loan position held in the segregated portfolio.

The Strategy provides secured loan instruments with a focus on the following key sectors of the market:

• Speciality finance companies;
• Investment holding and operating companies; and
• Real estate.

Although the split between these underlying sectors fluctuates depending on investment pipelines, we target to create a spread across the various sub-sectors.

1. Speciality finance
   Speciality finance companies comprise of non-bank lenders that have developed a niche in their sector of expertise, such as real estate bridging loans, asset and rental finance, merchant cash advances, etc.
   The majority of the funding provided by the Strategy to this sector is on a senior secured basis with a pledge and cession of the borrower’s book as collateral.
   There typically is significant equity or first loss within these books.
   The funding provided is typically to further grow the client’s book, thereby allowing the company to scale and become more profitable.
2. Investment holding and operating companies
   These transactions are typically provided to companies that have significant assets or investments where a traditional bank is either unable to understand the value of the assets or operate at the speed that the Westbrooke team is able to.
   The facilities provided are typically provided to fund acquisitions or working capital and are secured against the equity value inherent in these businesses.
   The Strategy typically takes corporate and personal guarantees to further secure the loans.
3. Real estate
   The Strategy provides loans to real estate holding companies, as well as to fund experienced developers.
   The transactions typically take the form of a senior or subordinated secured facility, which is backed by guarantees from the developer or holding company.
   The Strategy does not focus on ring-fenced development finance or greenfield projects.