TENET’s current investment portfolio consistently demonstrates our ability to deliver superior above trend (alpha) returns by screening and allocating to only select investment opportunities capable of meeting our industry leading underwriting guidelines that contract away underlying investment risks (beta).
For our Investors, TENET FINANCIAL offers a best-in-class risk/reward return based on applying TENET’s proprietary underwriting methodology and risk mitigation strategies. Our partnership with leading insurance companies, commercial banks, and investment banks creates the most comprehensive means of contracting away the events that can lead to potential economic or financial loss from our investment. TENET’s underwriting and risk mitigation strategies include: Strategic Loan Covenants, Cash-Equivalent Narratives, Structured Derivative and Hedge Underwriting, Indemnity Insurances, and other insurance coverages that when combined together form Tenet’s industry leading solutions for eliminating foreseeable risks.
Risk Mitigation Model – Our teams of highly skilled and seasoned engineers and financial professionals, many from diverse industries, know how to proceed from concept to exit. We excel at mitigating risk by deploying multiple layers of insurances and bonding. This, together with our financial engineering, qualifies TENET’s multi-layered underwriting to partner with experienced world class insurance companies to insure and protect our investors’ economic and financial interests.
Proprietary Fund Platform – Tenet Financial combines the expertise and track record of our team of experienced industry professionals to create a leading fund management technology: Our low-beta Strategic Fund II offers the best of the Hedge Fund model (short-term returns/redemptions with no long-term capital lock-up) with all of the mid-term upside of the equity management you normally see in a PE model (without the liquidity limitations of timing PE exits).
Internal Hedge – We have a proven track record in our ability to utilize our analytical skills as the basis for how we partner with leading insurance companies to create the insurance packaging that contracts away, in any given deployment, the critical economic event risks from our investor’s investment. Additionally, the equity holdings are managed by our RIA dedicated subsidiary Tenet Financial Services
OUR PROJECT PIPELINE IS RISK-MITIGATED, SECTOR AGNOSTIC, AND GLOBAL
Historically Tested Investment Parameters Mitigate Risk – We target Mature and Later Stage Companies, with Proven Technologies, Experienced Management Teams, and shovel-ready Projects that generally combine bonding, insurance, permits, licenses, take-out agreements, and EPC/EPCM agreements as the baseline to be underwritten under our proprietary investment model.
Sector Agnostic/Diversified Deal Flow – Real-Estate, Renewable Energy, Oil & Gas, Telecommunications, Infrastructure, Food & Beverage, Agriculture, Automotive, Technology, Education, and Healthcare all fit into our portfolio balancing.
Global Market Reach – Tenet’s 7+ year history and name branding brings in interest from over 2,000 Sponsors a year seeking out Tenet’s investment model as a means to raising all, or a portion of, their Sponsor’s Equity. Our credit enhancement mechanism allows for us to originate relationships with quality credit-worthy projects that require more sponsor’s equity/credit enhancement to qualify for underwriting through a bank or non-banking senior lender.
FINANCING BENEFITS TO PROJECT PIPELINE ENTREPRENUERS
Conserving the Sponsor’s Equity – TENET’s strategic investment methodology requires a cash fee at closing with zero equity dilution, and PE Investments requiring less equity dilution than most PE or VC funds. This cash and equity approach is the unique liquidity solution in Tenet’s investment model.
Flexibility – No need for Projects or project Sponsors to face an all or nothing dilemma on either the debt side or the equity side.
MAXIMIZING RETURNS FOR OUR INVESTORS
Six Sigma – Tenet’s fund management team invests through the means of acting as credit enhancement for the senior lender community (commercial banks and non-banks). Tenet, for the right project, has solved the primary problem regarding the bottleneck in the issuance of new loans in this new regulatory era; and will be the best-in-class solution for many years to come. Our Investors rely on us to utilize insurance products that unlock potential through effective risk management. Specifically, to craft strategies to quantify, mitigate and transfer risk, taking advantage of our specialist industry experience and unparalleled market know-how. The result is a new way of embracing risk that drives superior results
Transparency – Tenet, in response to the market’s railing against the way PE and VC funds have traditionally implied IRR on equity to their investors, has implemented a strategy whereby there is no capital from our Investor/LPs tied up in the equity that we attain on their behalf. This is why we refer to our investment model as engineered, not “alternative”, and the risk mitigation to be a mechanical function rather than some black-box mathematical algorithm. Essentially, we insure and contract away the real risk for our Investor/LPs by dispersing the risk through our partnership with experienced, world class, insurance companies.
If you believe that you are in the later stages of your capital requirements, and can efficiently deploy Tenet Financial’s capital, then please complete our Intake Form, so that your needs may be considered by our underwriting team.