Proprietary Funding Platform

TENET is redefining Private Equity style direct deal investment with our internally developed bond funding model. While we utilize debt instruments to fund up to 100% of sponsor capital needs in a similar fashion as traditional Private Equity, we do not simply exploit target company balance sheet capacities for massive amounts of leverage, nor do we use portfolio assets to securitize debt for future targets. Rather, we work with our project sponsors to identify and mitigate financial and economic risk factors, employing credit enhancement strategies, and accessing the capital markets through private placement investment grade rated shorter duration bonds. By deploying capital into the underwriting and closing stages of our bond funding process, short-term cash-on-cash returns are generated from fee participation while mid-term capital growth is achieved through accretion of equity earned in funded projects. Additionally, as a result of TENET’s financial engineering, capital deployments are returned to the fund once the bonds are issued allowing capital under our management to be re-deployed to additional projects.

Risk Management Model/Project Selection

Each investment opportunity submitted to TENET is thoroughly reviewed for feasibility and risk exposure by our internal analysts during our pre-underwriting process. Only those opportunities identified as showing the right characteristics are accepted into underwriting where extensive validation and feasibility analysis is conducted by our third-party strategic partners. 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.

Internal Hedge

TENET’s focus on systematic risk mitigation goes beyond simply substituting market risk and, through the development of a proven bond offering investment vehicle, replaces capital committed to launch bond offerings with the capital raised from the bond offerings themselves. This singularity removes the original equity capital from any further risk in the investment as the investor is no longer financially tied to the project. Additionally, equity holdings are managed by our dedicated RIA TENET Financial Services.