Draper Oakwood (www.draperoakwood.com) specialises in royalty capital. Put simply, we will provide businesses the equity capital they need to grow, in exchange for a percentage of future revenues. We call this the "R Round" - a Royalty Round.
Royalty capital is a common way to raise money in many industries, particularly oil & gas, mining and healthcare. Draper Oakwood will make royalty capital available to all types of growth businesses, provided they have strong revenues and gross margins.
No dilution. The R Round is uniquely non-dilutive. Shareholders will retain their ownership, maximising value for future fundraising rounds.
No interference. Management teams and existing investors will retain control of their business. We will not take board seats.
Customized to your revenues. Businesses pay more when revenues are higher, and less (or nothing) when revenues are low. Royalty payments will continue until we reach an agreed royalty cap - expressed as a multiple of the initial equity investment.
Ability to return capital. Capital can be returned early, subject to certain terms.
No personal guarantees. Unlike banks, we will never ask for personal guarantees. We will invest based primarily on your revenue generating potential.
Indus Basin Holding was awarded $24m under USAID's Pakistan Private Investment Initiative (PPII). The award represents a private equity investment in the newly formed Catalyst Fund. The purpose of PPII is to provide capital and management resources for the support and expansion of high-growth potential small and medium enterprises (SMEs) in Pakistan. The estimated life of the Funds is 10 years: a 5 year window to make investments, and a 5 year holding and liquidation period leading to closing of Fund operations.
The primary goal of the Catalyst Fund is to capitalize on Pakistan’s burgeoning domestic consumption market and growing competitiveness in product and service export opportunities. The market has a relatively non-competitive investment environment, and is home to numerous capital-starved SMEs with otherwise strong platforms for rapid growth.
The secondary purposes of the Fund are catalyzing the private equity (PE) and commercial lending sectors in Pakistan, by demonstrating examples of successful investments and exits, as well as subsequent expected development benefits of accelerated job creation and quality-of-life improvement in this key developing economy.
The Fund will take significant minority/majority positions in small and medium enterprises in Pakistan, which we generally characterize, depending on the industry, as companies within the ranges of $500k-5m and $5-25m in revenue respectively. Consistent with experience of the Fund team, the investment strategy and primary areas targeted for investment are:
SUSTENANCE - Agriculture Products and Services
POWER – Alternative and Conventional Energy
KNOWLEDGE - Education & Vocational Training
WELLNESS - Healthcare & Pharmaceuticals
OPPORTUNITY – Relevant High-Growth Business Services & Manufacturing
The Catalyst Fund was founded by Ali Saigol, who is also the fund's Chief Executive Officer.
Ali Saigol, Chief Executive Officer
Number 5, Street 15,