Capital Raised Since 2011
* Includes $4.8mm of Bridge Financing
Carofin provides investors access to an ongoing stream of private investment opportunities across venture capital, private equity and private debt. We encourage you to review our private debt offerings as well as our track record of managing these investments on behalf of our clients.
Private Debt Offerings Since 2011
Loans – Performance & Stats
|Avg. Offering Size:||$3,483,212|
|No./Amount||% of Offerings|
|Defaults (all types):||15||18.3%|
|Current Projected Loss:||$2,301,144||0.8%|
Risk and Return Across Private Debt
A Word of Caution
Our network of investors has enjoyed a 13.5% interest rate on average across our debt offerings. As is common in this asset class, they have also experienced investments that defaulted, are delayed and in some cases have lost principal.
Carofin structures its securities to mitigate risk, and when an investment becomes challenged, we engage in the effort to recover our clients’ principal. Read below our list of defaults and related recovery efforts.
LOAN DEFAULT AND RECOVERY HISTORY2
|Year||Issuance||Recovery (% of Principal)|
|2012||3-year, 16% Sr. Secured Note||135.7%|
|2012||15-month, 15% Unsecured Note Tranche A||118.8%|
|2013||12-month, 12% Sr. Secured Note||121.5%|
|2014||3-year, 13.2% Sr. Secured Note3||129.2%|
|2016||9-month, 12.0% Sr. Secured Note||109%|
|2013||12-month, 14$ Sr. Secured Note||Inactive||98.7%|
|2017||Current pay LLC Membership Interests||Inactive||84.25%|
2. All defaults are for non-payments unless otherwise noted
3. Covenant default
4. Fraud and non-payment default
Outstanding Transactions – Recoveries Ongoing
|Year||Issuance||Issuer Status||Recovery to Date||Projected Recovery|
|2012||15-month, 15% Unsecured Note Tranche B||Recovery Underway||36.9%||100% + Interest|
|2013||3-year, 15% Sr. Secured Note||Restart TBD||40.4%||100%+|
|2014||10-year, 15% Mezzanine Note||Improving Operations||~50.0%||100% + Interest|
|2014||12-month, 13.5% Sr. Secured Note4||Recovery Underway||64.5%||75%|
|2015||3-year, 12% Sr. Secured Notes Tranches I & II||Improving Operations||0%||100% + Interest|
|2016||9-month, 12.5%||Recovery Underway||41.2%||60%|
|2016||12-month, 15% Sr. Secured Note||Recovery Underway||79.2%||Approx. 100%|
Private Equity and Venture Capital
A Longer Term Hold
Equity stakes in privately held businesses has at times created considerable wealth for informed, patient and sometimes lucky investors.
Equity investments are typically subordinated to debt and thus can carry a higher degree of risk. Private equity investors should expect to hold these investments for 5-10 years, understanding that liquidity events and timeframes are often unpredictable.
Equity – Performance & Stats
|Number of Issuers||36|
The information contained herein has not been reviewed, verified, or audited by an accountant or other third party, and there are no warranties, expressed or implied, as to the accuracy, completeness or results obtained from any information in this document, so it is not a complete description of any investment or investment performance. The results presented should not and cannot be viewed as an indicator of future performance.
Securities are offered by Carofin, LLC. Carofin and Carolina Financial Securities, LLC are affiliated Broker-Dealers and members of FINRA, with both Broker-Dealers being subsidiaries of Carolina Financial Group, LLC. Securities offered by Carofin have not been endorsed by the Securities and Exchange Commission, FINRA, or any state securities commission or regulatory authority and are offered solely to Accredited Investors pursuant to an exemption from registration under the Securities Act of 1933 and its relevant rules and regulations. Securities offered pursuant to an exemption from registration are high risk, illiquid investments and may result in the loss of some or all of your investment.