Direct Investments
NIR's Direct Investment portfolios are designed to generate risk adjusted returns with low market correlation while preserving investors capital in all market environments.
Background
NIR has one of the longest track records of any fund in the direct investment space. Our founder and portfolio manager has been investing in this space for over 10 years, investing in excess of $4 billion in capital on behalf of his investors. Those numbers are actual invested dollars and not committed capital. (i.e. money that is offered in certain investment structures or credit facilities that never actually get funded).
Strategy
Our direct investment strategy specializes in funding Development Stage, Emerging Growth and/or Distressed public companies. We do so by tranching out investments over a two to four year timeframe.
The purpose of this is threefold:
(1) to limit the initial dilution of an issuer’s common stock;
(2) to reduce our risk in the overall transaction (e.g. if there is a material adverse change at the company, we will not invest any further capital, and
(3) protect against potential losses due to fraud or corporate malfeasance.
Strategy Highlights
Investments are made in a controled investment process, allowing NIR to use its proprietary investment process. Our investments are normally senior secured debt, backed by the assets of the company. Our investment process allows us to mitigate liquidity and credit risk by tranching our investment cycle over a 2 to 4 year period. We also neutralize overall market exposure with the structure of our moving convertible note, significantly reducing downside risk.