As we prepare our upcoming quarterly review, we are pleased to announce that the 10foot portfolio has returned approximately 70% since last quarter and now has an unaudited total net asset value (NAV) of $16,830 versus an initial value of $10,000 at inception.
There has also been a change in the structure of the fund, via deployment of a special purpose vehicle (‘Portfolio SPV’) which now holds the 10foot portfolio. A separate SPV (‘Website SPV’) was created for the purpose of holding the 10footinvestor.com properties, which as you know, are in the process of heading to IPO. The Portfolio SPV has significant – to date unrecognised – intangible assets, primarily in the form of the portfolio manager and their world-class expertise and connections. These are difficult to value. However employing the latest financial techniques like Discounted Cash Flow methodology, modest growth assumptions and a technical change from reporting NTA to NAV, we are now able to ascribe a value to these and thus, the net asset value of the Portfolio SPV is significantly higher than was previously reported to the market. We regret and apologise that it has taken so long to ascribe a fair value to holders’ assets.
Importantly, the Portfolio SPV will begin paying management fees to the Website SPV, 10footinvestor.com. As a result, 10footinvestor.com will soon be drawing its first revenues and progress beyond the pre-revenue stage of development, which should make it easier to finalise the IPO process and unlock a fairer equity valuation for holders. A preliminary valuation suggests 10footinvestor.com could be worth as much as $60 million instead of the $40 million previously disclosed to the market.
A signing bonus of 10 million options in 10footinvestor.com with an exercise price of $0.001 was issued to the Portfolio SPV in return for awarding the management contract to the Website SPV. As a result, we expect the forecast strong growth in the NAV of the portfolio SPV to continue for the foreseeable future. In FY18 we are forecasting investment returns of 120% followed by approximately 100% in FY19 as the IPO process completes.
We will soon be issuing a supplementary report detailing our newly revalued assets, and depending on investor interest, may consider re-opening the fund to further investment. We are available to answer client queries at firstname.lastname@example.org, or via our twitter handle, @10footinvestor.
And if you believe all that, I have a $60 million IPO I’d like to sell you….
Corporate Fuckery-O-Meter™ rating: Off the charts.