Pre-IPO Fund I
Eagle Pre-IPO Fund I
The Creation of Wealth
Jeff Bezos and Amazon. Bill Gates and Microsoft. Larry Ellison and Oracle. Three of the most notable names and companies amongst many created in the last decades born from ideas. The world was unaware of the need or utility for these technologies, but the founders and teams had visions that were forward thinking and innovative.
These ideas and inspirations had little quantifiable value in their most nascent stages and were the Intellectual Property upon which each of these companies were based. But when they were the intellectual properties, they were the seeds which bloomed into plants and multiplied into forests. So, how did these companies find the fertilizer to grow and be revenue producing and maturing entities?
Early Stage Investing
Founders, Early Investors, Angel Investors, and then Venture Capitalists and other forward thinkers shared the visions of the founders and saw the potential for extraordinary growth. Many of them made investments before companies were even incorporated.
Investors that saw prototypes and what they would develop into, and in some cases helped to establish the first phases of manufacturing. While the founders of these companies have created astounding value for themselves, so have the early-stage investors received extraordinary returns on their investments.
The Eagle Pre-IPO Opportunity Fund I
The Eagle Pre-IPO fund seeks to find and incubate these unique intellectual properties and provide opportunities for investors in the fund to participate in the growth of companies from their early stages. The fund recognizes that not every investment will pay off and in fact, a good number will not. But a baseball player who gets a hit 3 out of 10 times at bat is likely going to the Hall of Fame – such is the value of each hit.
The value of the Eagle Pre-IPO fund is finding the right intellectual property and helping it prosper. An example to put it in perspective: Andres Bechtolsheim, the co-founder of Sun Microsystems, made a $100,000 investment in Google before the company even had a name. Twelve years later, that investment was worth $1.7 Billion, and he was one of several early-stage investors to see similar returns.
The Eagle Pre-IPO Opportunity Fund I - Term Sheet
|INVESTMENT OBJECTIVE||Fund will invest in early stage technology and related opportunities with a view to hold each investment until the earlier of its IPO, outright sale, or exchange of its securities for securities of an acquiring company.|
|TERM OF FUND||Anticipated to be 5 years subject to extension.|
|INVESTORS||Accredited Investors only, within the meaning of Regulation D under the Securities Act of 1933.|
|STRUCTURE||Limited Partners (Investors) invest in a closed-end structure managed by its General Partner (GP), Eagle Fund Management, LLC.|
|INVESTMENT PERIOD||Fund expects to deploy its capital within two years after the initial closing date.|
|EXIT STRATEGY||Fund expects to exit from investments in a variety of ways including through the Initial Public Offering (IPO) of the companies invested in, sale of the companies invested for cash or the stock of acquiring companies, or distribution of the shares to Fund investors.|
|INVESTMENT GUIDELINES||The Fund cannot initially invest more than 5% of the Fund’s assets into any one opportunity.|
|THE GP AND MANAGER||Eagle Fund Management, LLC (EFM) -- a unit of Eagle Private Equity www.EaglePrivateEquity.com, an adviser focused in early stage private equity opportunities. EFM Principals have long experience in evaluating and realizing on early stage Intellectual Property based opportunities.|
|GP INVESTMENT||GP intends to invest in the Fund an amount equal to 1% of Fund assets on a basis similar to that of Investors.|
|PREFERENTIAL RETURNS||Investors receive distributions equal to 8% annualized, cumulative, and non-compounding; prior to any distributions to the GP.|
|PERFORMANCE FEES||Once the Fund profits are allocated 80% to Investors, and 20% to the GP.|
|MANAGEMENT FEES||GP receives a 2% Management Fee. Fees paid quarterly in advance.|