Investment terms
Repaid from revenue the partnership already collects
$2,000,000 across 20 units. A three-year instrument paying 8% annual interest with progressive return of capital, funded by a share of the administrative load rather than by member contributions or by new investor money, with an option at maturity to convert any remaining balance into equity in the general partner.
Structure
Round at a glance
- Total raise
- $2,000,000
- Units offered
- 20
- Price per unit
- $100,000
- Term
- 3 years
- Interest
- 8% per year
- First distribution
- Per the offering documents
This website is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any offer is made solely to verified accredited investors through the confidential offering documents for NWX Consorcio LP, which should be read in full before any investment decision.
Mechanics
How the return is paid
Two components, paid from the administrative load the partnership collects on member contributions.
- Source of payment
- 10% of the 19% administrative load charged on member credit value. The pool grows as members enrol.
- Capital amortisation
- Principal is returned progressively across the term rather than at maturity, and accelerates as the program scales. Amortisation in any year is capped at the capital still outstanding.
- Interest
- 8% per year, for a cumulative 24% across the three-year term. Paid on the capital base.
- Distributions
- Beginning Per the offering documents, paid into the investor's nominated account. Frequency within each year is set by the offering documents.
- Security
- A percentage partnership interest is held in escrow for the duration of the contract.
Projected total per unit, full 3-year term
$123,000 to $126,000
On a $100,000 unit: capital returned, capped at the amount invested, plus $24,000 of interest. That interest figure is the same in every case, because 8% is charged on the capital base rather than on business performance. The scenarios change how quickly principal comes back, not how much.
Conversion option
From lender to partner at maturity
At the end of the three-year term, an investor may convert any capital balance that has not been amortised into equity in NWX Management LLC, the general partner that operates the program.
- When
- At the end of the 3-year term.
- What converts
- The remaining unamortised capital balance.
- Into what
- An equity interest in NWX Management LLC, the general partner.
- Valuation cap
- $8,000,000 for NWX Management LLC.
- Worked example
- At the cap, $1,000,000 converted equates to a 12.5% interest in the general partner.
- Security
- The percentage interest is held in escrow until conversion.
Use of funds
What the capital buys
Revenue is a function of members contributing, so the round is spent on the capacity to enrol members. Each member added is worth $1,140 a year in administrative load at the modelled contribution level.
- Raising
- $2,000,000
- 20 units of $100,000.
- Revenue per member
- $1,140
- Per year, at $500 per month against the 19% load.
- Participants by 2028
- 10,000
- Base case in the published model.
- Annual AUM by 2028
- $60MM
- Base case. The upside case models $75MM.
The full allocation of the round across distribution, technology, compliance and reserve is set out in the offering documents.
Eligibility
Who can participate
Interests are offered under Rule 506(c) of Regulation D. Participation is limited to accredited investors as defined in Rule 501(a), and every purchaser's accredited status must be independently verified before subscription. Self-certification alone is not sufficient.
Request the offering documents