North America Opportunity Fund

Investment Opportunity

The North America Opportunity Fund gives investors the opportunity to invest in a short-term corporate lending business wrapped into a regulated open-ended fund. The North America Opportunity Fund management has extensive experience in structured trade finance for small and medium sized companies in the US Market.

The primary focus over the last decade has been to offer short-term working capital funding to high-quality small and medium enterprises, secured and collateralized by fully performed receivables.

The fund has a team of seasoned financial professionals in Florida, whose main responsibility is to supervise borrowers, perform credit analysis, run the loan operation, conduct active risk mitigation, and carry out collections.

Investment Policy

The fund provides working capital to borrowers in three main sectors:

Healthcare – providing working capital to fifteen out-patient medical facilities and pharmacies owned by Sinai Medical.

Recyclable Metals – providing working capital to Alliance Metals, a large operator engaging in recyclable metal transactions.

Government Procurement – providing working capital to Office Wagon which is an approved vendor for the US government.

The Fund targets these sectors because they are characterized by high profit margins and a significant time gap between the time the product or service is supplied and the time the supplier receives payment from his end buyer. the Fund provides working capital to finance the time gap. The Investment Manager’s approach in selecting investments for the Fund is focused on individual company analysis within the chosen sectors. The fund is seeks out market leading borrowers with strong collaterals. 

The transaction cycle is uniquely designed so that the Fund is paid back by the end buyer of the borrower’s product or service, and not by the borrower, which further decreases the credit risk.

IN-DEPTH LOOK INTO CHOSEN SECTORS

HEALTHCARE: As a result of recent changes in legislation, specifically in Florida, licensed outpatient medical facilities are now authorized to conduct more complex, and in-turn higher-yielding, procedures that historically have been conducted exclusively in a hospital setting (e.g. cardiovascular surgeries).  From the insurance companies’ perspective, these facilities are more attractive than hospitals because they can settle claims with the providers for a significantly lower cost than they would incur if the procedure was administered in a hospital (in some cases up to a 50% savings). This is the reason that the out-patient medical facilities services are in high demand and the business continues to grow rapidly.   The Fund has assembled a team of experts within the healthcare space, who act as strategic partners, and have leveraged their experience and “know-how” to successfully execute this strategy.

RECYCLABLE METALS: The Fund, in conjunction with Alliance Metals the recyclable metals operator, have identified an arbitrage that exists within the industry. The recyclable metals operator aggregates different grades of non-ferrous metals (copper, aluminum, alloys, etc.) for resale at a significant discount to global market prices. The purchase of raw material supplies and the sale to manufacturers are executed simultaneously by the operator. The materials are insured throughout the lifecycle of the transaction with the Fund as the beneficiary. It is worth mentioning the bulk of business (currently above 90%) is made domestically in the US thus lowering the risk of transportation and political tensions.

GOVERNMENT PROCUREMENT: In an effort to promote increased transparency and competition in the selection of vendors to fulfill government contracts, the United States government developed the Federal Business Opportunities platform. This platform allows federal, state, municipal, and quasi-government agencies, both domestically and internationally (e.g. hospitals, embassies, consulates, police stations, military bases, fire departments, etc.), to post open bid contracts to vendors who have been vetted to become approved government suppliers. The operator has a dedicated team, who leverages their expertise to monitor the Federal Business Opportunities platform and place bids on various contracts. The borrower has secure payors with US government credit risk, making an attractive risk-return profile.

The Fund’s dedication to due diligence and risk management has resulted in stable and consistent equity-like returns with low volatility characteristics and little or no correlation to global capital markets. By identifying attractive sectors that present repeatable, scalable, and defensible transaction patterns, that are uncorrelated to the broader markets the Fund is able to further de-risk the different opportunity sets by engaging in a transaction model with predictable characteristics and creditworthy end-payors.

FUND ADMINISTRATION

The North America Opportunity Fund is registered with CIMA (Cayman Islands Monetary Authority). The funds Administrator is VISTRA fund services. The legal aspect is handled by Logan Law Firm. the funds Auditor is BDO and the Operating Bank is Wintrust.

PURCHASING THE FUND

The north America opportunity Fund is open to investment in the main Israeli and European banks with an ISIN number.

Investments are in Dollars and the investor has the choice between receiving quarterly dividends or compounding interest.
For more information and performance fact sheets please contact our Investor Relations department at +972-54-238-3882 or by email to: sales@egfe.com

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