TENET Financial Corporation’s proprietary investment process, underwriting methodology, and risk management strategies provide accredited investors access to private market investment opportunities offering a best-in-class risk/reward profile through our low-beta investment funds. TENET deploys capital under management into the underwriting and closing stages of our highly engineered structured bond funding process to create income opportunities via fee participation and capital growth through accretions to earned equity, all while protecting investor capital.
Throughout our funding process, we partner with leading globally recognized institutions to research, evaluate, validate the feasibility of, and transact our capital deployments. Through these partnerships, TENET has created the most comprehensive means of identifying and mitigating instances of economic or financial loss allowing for the monetization of project risk (beta) and the contracting away of the risk exposures of our investors.
Leveraging our partnerships in the insurance, consulting, investment and commercial banking sectors, TENET has created an industry leading solution to mitigate foreseeable risks with strategies that include:
• Strategic Debt Covenants
• Cash Equivalent Narratives
• Structured Derivative and Hedge Underwriting
• Indemnity and Other Insurances Coverages
• Portfolio Company Board Representation
Our expert team has completed over $2 Billion in bond transactions utilizing our current structuring methodology and over $7 Billion in total bond transactions over decades of collective experience. Our extensive market knowledge and networks allows us to expertly navigate the investment process from opportunity assessment through exit.
TENET’S INVESTMENT PHILOSOPHY
Our core investment philosophy is centered on the belief that to consistently grow capital, it must first be preserved. For this reason, we focus our capital deployments on private investment opportunities in proven markets with key income generators that can qualify for our highly engineered bond structuring. Further, we believe that active – not passive – direct investment delivers alpha in an investment portfolio. To this end, we manage our fund portfolios by independently originating and actively selecting investment opportunities to underwrite, fund, and manage.
TENET, for the right projects, has solved the primary problem relating to debt financing bottlenecks in this new regulatory era; and will continue to be the best-in-class solution for many years to come. By deploying capital into the underwriting and closing stages of our target’s bond offerings, TENET unlocks access to the capital markets that would otherwise be out of reach and unleashes project potential through our utilization of specialized insurance products and effective risk management. Specifically, we leverage our specialized industry experience and unparalleled market knowledge to craft strategies that quantify, mitigate, and transfer risk exposures, effectively embracing and monetizing risk (beta) to drive superior results for our investors and project sponsors.
TENET’s highly engineered investment process enables assets under management to be deployed, returned, and re-deployed to new projects multiple times, allowing for the possibility of exponential returns over a mid- to long-term investment horizon. We achieve this feature through the mechanical substitution of our investor’s capital, at bond closing, with the capital raised from the issued bonds. More simply stated, once a projects bonds are issued, the investor capital used to fund underwriting and issuance costs is returned to the fund (plus earned fees) from the bond’s proceeds and is available for re-deployment, allowing fund investors to earn both short-term cash-on-cash returns and equity from multiple projects on a single investment of capital.
Unlike some other sophisticated investment funds, TENET does not rely on black-box algorithms or complex mathematical equations to calculate performance or to manage and mitigate investment risk. Rather, shorter-term cash-on-cash returns are easily identifiable as participation in pre-negotiated bond fees at bond closing, while longer-term capital growth occurs from accretion to earned equity in funded projects. Risk mitigation is approached through a straightforward process of utilizing highly specialized insurance products, to contract away risk, and through structuring our investments in such a way that capital deployments are substituted for debt capital, at bond issuance, to mechanically, not synthetically, remove financial risk exposure for our investors.