Thank you for joining us for 1 hour and 20 minutes on our webinar on 4/5/2021. We received more soft commitments than we originally expected. Thank you for your interest! We appreciate the positive feedback, suggestions, and follow-up questions. If you were not able to join our webinar, you can watch the recording here.
For those who attended last night and just want to go over some key highlights, you can jump to the sections by adding #t=(minutes)m(second)s to the end of the link. Here is an example: https://www.youtube.com/watch?v=XfG75yEwY4s#t=3m26s
(06:41) The Team
(21:28) The Opportunity
(26:50) Cash by Necessity
(31:11) Competition Landscape
(33:27) Technology Risk
(40:09) The Operator
(42:14) Risk Management and Financials
(47:47) Underwriting Model
(53:07) Portfolio Management
(58:15) ATM vs MF comparison
(63:53) Next Step
3 Things We Like about this Deal
21%+ predictable cash on cash return based on historical data
100% bonus depreciation to offset passive gain and 0% depreciation recapture at the end
0 leverage and recession-resistant
We covered many questions a passive investor may ask regarding this deal and the ATM business. We provided hard evidence based on data instead of opinions to help you make an investment decision. Here is the analytical framework we used to analyze this deal:
The Analytical Framework
Cash in circulation has been increasing steadily since 1995 and the increase accelerated since the outbreak of COVID at Feb 2020 (‘’recession-resistant”).
~30 million household in US are unbanked or underbanked. Those are the people who do not have any bank account and have to heavily rely on cash.
The demographic characteristics of the unbanked and underbanked population shows that the demand for cash will at minimum stay or increase due to economic hardships felt by the most vulnerable population.
As a conduit to dispense cash for cash users, ATM won the competition against bank branch.
Back-of-the-envelope calculation shows a $4 billion dollar industry and the cash flow stream is predictable.
We chose an institution quality operator to gain exposure into the recession-resistant ATM business.
Everything you need to know about the deal: cash-on-cash return, IRR, 100% bonus depreciation and the tax benefit, payback period etc
We considered the the risks of economic downturn, inexperienced operator, alignment of interest, and leveraging, and shared how these risk are mitigated.
The Next Steps
Attached please find our video recording and the presentation deck attached for you to review and conduct your independent research. Just a reminder, we do have a very tight funding window. The deadline of VERBAL commitment is 3/10/2021. We plan to send the capital contribution to operator by 3/15/2021, which means we need to receive capital contribution by 3/12/2021. If you can’t wire money by the deadline, please let us know as soon as possible so that we can find a solution for you.
What to expect next?
Watch the recording (you can adjust the speed of replay if you want) and Presentation Deck attached in this email
Last day of verbal commitment (you can change your mind later): no later than end of day 4/9/2021
For those who send verbal commitment, we will send legal docs, FAQ, accredited investor accreditation instruction: Coming soon
Signing legal docs and waiting for manager approval
Once approved, funding by 4/12/2021
We received questions regarding the tight funding window and requests for more information. Unfortunately, these are the real struggles I experienced as an individual passive investor: the good deals are always over-subscribed...sometimes within a few hours after the webinar. That’s why we create this co-investing model: we want to secure a spot in good deals without over-commit too much capital into one deal as an individual passive investor.
What we presented last night was a culmination of five months of research. Please bear in mind this is a private investment and not all the information is publicly available. I remember I had to take a leap of faith when I invested in this fund last year, and now we have done our best to provide you all the available information so it is much easier for you fill in the gap. You still have to use common sense and your judgement call to make the call.
Thank you for giving us an opportunity to share our research on the ATM business. It also showcased our capability to conduct independent study and underwriting. We believe the co-investing model is a solution to clear the hurdles passive investors have to face. We want to build long-term relationship with you, not on a transactional basis and hope to earn your trust.
Invest with Confidence
Sharpe Investor Group
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