Regulated Business

Invest

•••
  1. Joint Venture Investments
  2. Risk Mitigation Strategy

How Do We Mitigate Risk

We currently tend to receive around 100 proposals per month from developers looking for joint venture property development finance. Each of those proposals are diligently assessed using our internal risk management process.

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Risk Management

Risk is managed by sticking to traditional open market exits using conservative sold comparables to form the targeted GDV (Where the GDV is the total sales from selling all the units) and undertaking a sensitivity for each scheme allowing for increases in contruction costs via CPI inflations.

Exit Strategy

We ensure senior debt and mezzanine facilities have sufficient sales periods built in on top of the construction periods. Alternative exits are forecasted. Such as opting to rent all the dwellings within a scheme, redeeming senior and mezzanine facilities via buy to let mortgages.

The plan B must be forecast to work as well as plan A for acceptance by us before presentation to investors on our equity platform.

Developer's Credentials

The developer’s CV and their historically completed schemes are assessed to ensure track records match those of the proposed scheme. The developer’s assets and liabilities (A & L) are assessed to ensure each developer is able to meet their personal guarantee amount (Generally, 20% of senior and mezzanine debt facilities).

We have step in rights via the shareholders agreement to take over the project should the developer not perform. Under these circumstances, the developer’s shares are transferred to us.

Outcome

Undertaking such rigorous due diligence usually averages 1% of the proposals being put forward for our joint venture equity investors.

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JaeVee is a trading name of Estateducation Ventures Ltd (FRN797322), which is an Appointed Representative of Prosper Capital LLP, which is authorised and regulated by the Financial Conduct Authority (FCA) (FRN453007).

Estateducation Ventures Ltd is registered in England & Wales with company number 10172481. The registered office of the company is Studio 9 Netherconesford, 93-95 King Street, Norwich, NR1 1PW.

Estateducation Ventures Ltd (10172481) undertakes both regulated and unregulated business. Business activities described in the ‘Invest’ section of this website are considered regulated business. All other sections are considered unregulated. Note that senior debt and mezzanine finance is arranged by Teal Finance Ltd (registered in England and Wales no. 11305739), which is authorised and regulated by the Financial Conduct Authority (No. 923626).

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Investing in JaeVee involves risk, including loss of capital and illiquidity and it should be done only as part of a diversified portfolio. Investments made through JaeVee are not covered by the Financial Services Compensation Scheme (FSCS). Please read our full risk warning before deciding to invest.

Capital at risk. Read our full risk warning.