EABF (Expandable Active Block Funds)
Kinesis Capital & Investment strategy of investment is based on implementation of an effective financial, operational and governance initiatives to focus on revenues generation, EABF are blocks linked to a sector of investment, the blocks are named and generated based on four factors :
- Forecasting and Valuation : through an full and in-depth understanding of the industry where the fund is acting, we evaluate the business and translate the financial forecasts and type of strategies related in order to code the fund.
- Stock Risk Assessment : Individual or other type of risks associated, a full quality scoring protocol based on multi factor assessment framework (quantitave-qualitative) is set up to evaluate accurately the risks, our Big Data network allow us to check cross check similar companies in our database over their minimal gearing and anticipate failure risks.
- Portfolio and Project Structure : The allocation of the code related to the EABF is based on the capacity of the project to interact with other EABF or act standalone over one EABF, our company allocate capital to each EABF based on risk and return trade off with high evaluation of the market and economic risks.
- Market and Economic Risks Management : the last factor allowing our company to note efficiently the EABF, based on the industry the fund will be active for, in order to allocate funds efficiently, its the compliance to our risk management matrix , the typology of projects and the fund associated are evaluated, the screening of the economic risks and the market management solutions will lead the note of the EABF block fund.
Each active block allow different returns based on the factors presented above, for a example we experience historical returns and high yield for EABF_CI (Complex Infrastructure), as the fund invest on very complex assets generating high and quick returns at a profitable interrest per year for our investors.
Blocks like EABF AA or HB generate a more longer yield as they are based on research and development for more than 40% of the EABF, the results is leaded by the patent and the application, usually Kinesis Capital mix the investment with venture lending in order to reduce the risk on the fund and the mobilization of long term funds.
Some projects can be part of multiple EABF using very unique strategies of investment, for example the MROTROPOLIS in Malaysia, the project receive 60% of funds from EABF_AA for the airside facilities, EABF_ITAI provide 15% for the polycrystaline fiber network and the systems associated where EABF_EP provide 20% of the funds for the energy production and distribution and EABF_CI provide 30% of the funds for the landside infrastructure.
To generate more profit and reduce the ROI and increase the IRR, the management company choose to put 10% in derivative and 4% of the results in trading to generate more direct revenues.
The company hold a strategy of CDS (swap) where the EABF_CT will perfectly match, this example shows how our active funds are flexible and capable to act together in order to generate value and a unique oversight for the project.
Fields of Investments for the four major EABF (Expandable Active Block Funds)