Asset Base Investment
We provide non-recourse, non-purpose capital at competitive terms in exchange for equity collateral. The equity becomes part of our portfolio for the financing term, but the borrower retains all beneficial ownership and upside from the asset upon completion of the financing term.
OUR INVESTMENT PROCESS ENSURES EVERY TRANSACTION IS SIMPLE AND TRANSPARENT
The ACI portfolio management and origination teams identify a suitable equity investment and establish a partnership with the issuer or asset owner.
AGREEMENT & FUNDING
ACI issues a loan to the asset owner and receives equity as pledged collateral in order to establish a long position in its portfolio.
The asset owner receives favorable, fixed loan terms in exchange. Interest rates typically range between 3 – 4% and LTV ratios typically range between 60% – 70%.
FINANCING & COLLATERAL RETURN
At the outset of the loan, ACI obtains title and custody of the equity collateral.
The investment team has the discretion to rebalance the portfolio and engage in trading and risk management activity.
When the loan is repaid, the full number of shares is returned. The asset owner retains 100% of the equity upside appreciation.
RISK ASSESSMENT & MITIGATION
As a global financial institution, our top priority is managing risk, regulatory compliance, and AML considerations. For years, ACI has worked to protect borrowers through a robust infrastructure to mitigate a wide variety of risk factors and prevent fraud. The measures we take help ACI, our borrowers, and our partners remain safeguarded against possible improprieties.