Modalities of Investment
Once a theme is identified, and a vector for value creation chosen, a well-tailored modality will be developed for value capture.
Primary Mode: Internally Developed Vehicles
The Primary mode for CrystalPoint Partners to make investments is through the launch of “Internally Developed Vehicles (IDVs)”. IDVs can take one of two forms:
New Companies: CrystalPoint may form an independent new company (NewCo) to capitalize on a particular opportunity. CPP will provide NewCo with seed capital and managerial support to allow NewCo to achieve critical mass and the proverbial “CrystalPoint”. It is the intention that NewCos are independent within a 2 to 3 year development period.
New Securities: Certain Tectonic Themes are addressable through the development and construction of new securities, or through the deconstruction of existing ones and redeveloping them into new ones. CrystalPoint works with partner financial institutions in the development of such instruments for its own account.
Invariably, CrystalPoint Partners is the sole investor at the initiation of an IDV, and only upon a certain level of maturity, are other investors invited to co-invest. This is then handled within the context of “Capital Markets Activities: Portfolio Financing”.
Secondary mode: External Vehicles
The Secondary mode for CrystalPoint Partners making investments is through external vehicles, be they making direct investments in existing companies (privately held or publicly held), or acquiring a portfolio of securities (shares, bond, options, futures, derivatives, etc.) available on the market that reflect CPP’s view.
Over time, we expect that this secondary mode to take on an increasing amount of CrystalPoint’s capital resources, by virtue of CrystalPoint’s increasing capital base.