ACQ Capital is providing equity capital for a broad range of ventures
including: start-up, expansion, real estate development, R &
D, acquisitions, debt-reduction and non-profit organizations.
Our funding capacity is the result of a joint venture with two
hedge funds and a major German bank. ACQ has already met all underwriting
requirements, leaving only due diligence and underwriting of the
project requiring capital and being provided secondary assets,
specifically real estate (“real estate assets”).
||Many good projects either
go unfunded or fail due to a lack of capital. To the astute investor,
the issue ultimately reverts to “risk” and the possibility
of “loss of capital” while the potential ROI is very
||ACQ Capital has developed
financial vehicles to solve a variety of problems associated with
funding projects by mitigating risk. The solution requires ACQ Capital,
together with its partners, utilize these real estate assets in
a manner that creates investment capital WITHOUT encumbering or
pledging the real estate as collateral at any time.
Estate Asset Criteria:
The Project (any individual,
partnership, LLC and/or company requiring capital) desiring capital
funding must provide real estate assets to be utilized as part
of the funding package. The criteria is narrow, specific and non-negotiable.
|The Project must
provide qualifying real estate having an appraised equity
125% of the amount of capital desired/requested. The Project
may utilize real estate owned by 3rd party(s). Multiple properties
may be utilized.
The Project must provide a current, acceptable institutional
Minimum appraised equity must be greater than $1,500,000.
The quality of the appraisal is essential.
“Existing debt” cannot exceed 30% of the appraised
value. If existing debt exceeds 30%, the Project may reduce
debt to meet this requirement, but any reductions must occur
prior to submission for Bank underwriting. ACQ will not advance
funds prior the issuance and execution of a binding Bank funding
Most types of real estate is acceptable: Single Family Residence;
Residential, Commercial & Industrial Income; Hotels; Development
land; Ranch; Agricultural
Title to the real estate and existing loans remain exactly
as they are and must remain exactly the same throughout the
term of the funding contract.
Prefer California, but not geographically bound, including
|With acceptable real estate
assets in place, funding is typically structured as follows:
ACQ Capital causes a funding contract to be issued by ACQ’s
Bank to fund the amount of capital investment required by
The agreed capital investment is distributed over 12 monthly
The Project becomes a party to ACQ’s Bank funding contract,
thereby assuring the Project will receive their capital investment
on a timely basis.
Title to the real estate does NOT change for the current owner
at any time. The current owner of the Assets continue to own,
operate and maintain the Assets for the term of the agreement.
Closing for the initial funding typically requires 60 days
from the date the appraisal is received.
|The Assets become part
of the Bank funding contract but NOT utilized as collateral to support
a loan, nor are the Assets pledged, hypothecated or encumbered at
any time. No liens of any type are recorded by either ACQ Capital
or ACQ’s Bank against the property at any time.
||Investment Range: $1,500,000
minimum / $50,000,000
Consideration to ACQ: Typically equity in the Project, negotiated
on a performance oriented earn-out basis. Every transaction is tailored
to the specific project, giving consideration to the Project quality
and status, management team, track record and other relevant factors.
The management team must gain an appreciation of the value of capital,
recognizing the capital is the only party taking any real risk and
therefore, must take steps to mitigate risk. ACQ will not provide
the required real estate to support funding for any other Project,
other then the Project it is intended to support.
Liquidity Event: 3 to 5 years
Consideration to the Owner of the real estate: The Project management
team will negotiate the provider of the real estate, a separate
and independent agreement whatever level of consideration or participation
they will receive in the Project. ACQ Capital does not participate
in these negotiations at any level, but full disclosure of the nature
of the agreement.