Who We Are
We live in a crazy financial world. Since the crash of 2007-08 we have suffered almost limitless quantitative easing, ZIRP (zero-interest rate policy) and NIRP (Negative Interest Rate Policy); giving us historically low interest rates. The fact that some institutions were investing to willingly lose money through negative interest rates just shows how crazy things have really become in the financial world. It is envisaged that this rather gloomy scenario is unlikely to change much over the next few years.
This has achieved nothing apart from generate huge asset price bubbles for the 1% of the world that own those assets. Everyday investors have been left to search for yield in a world of ever decreasing returns. Then throw in the political back drop of the Brexit vote and US election of 2016 and the whole world appears in turmoil. It is this backdrop that has led to the foundation of William Marshal plc.
Despite the lack of yield for investors in the world generally there are still many fundamentally sound growth and income opportunities for investors; they are just not readily available or easily sourced as an individual, or even institutional, investor. This sentiment is at the heart and core of the raison d’etre for William Marshal plc.
It is our aim to provide investors with both long term capital growth through share price increase and income in the form of dividends. In short William Marshal plc was founded to provide investors with a vehicle to access some great investment opportunities that they wouldn’t necessarily come across. In simple terms the overarching investment strategy is nothing new; a focus on buying good businesses for the long term at below book value.
The overall strategy will be two-fold. William Marshal plc will take advantage of private placement opportunities, procuring shares in companies at pre-IPO stage to build in inherent long term value, dividends and capital growth. In addition to this, William Marshal plc will invest into Private Equity opportunities with a Real Estate & Property flavour.The share capital of William Marshal plc will be used to pursue this aim.
The Private Placement & Pre-IPO Strategy
Utilising existing connections in the City of London and around the globe William Marshal plc will take advantage of investment opportunities presented by early stage companies planning a stock exchange listing within a 24-36 month period from investment. We are sector agnostic and will look at companies that are fundamentally sound financially, can demonstrate excellent management and demonstrate a long term plan in their chosen market for investors.
We will use a case study to demonstrate this process.
Case Study: Company X Ltd
Company X is an online betting service that supports grassroots sports clubs by providing them with the ability to generate revenue through their own FREE betting service. The clubs benefit by receiving 20% of net revenues raised through users of each club’s betting site. There are also incentives for clubs who generate revenue for items such as free team kits and training equipment. From a standing start the firm have generated x number of users and continues to grow. There is however, another facet to this business once one digs a little deeper under the bonnet; and that is in relation to Intellectual Property owned by the firm. The Intellectual Property in question covers ANY type of profiled changing data over ANY mobile telecommunications network in the United States of America. In a patent case in the US it has been found that certain companies were in breach of this particular patent and a positive settlement is due to Company X (via their Patent Attorney).
We believe that this intellectual property element to this particular company gives it a real edge in long term value and lifts the prospects of the company tremendously. The detail of the private placements was as follows;
First Round funding was priced at £1.25 per share
Second Round funding was priced at £2.50 per share
Third Round funding was priced at £3.75 per share
Fourth Round funding was priced at £7.50
Following the fourth round of funding Company X plan to carry out a Reverse Takeover of an existing listed company to facilitate the listing of Company X onto the London Stock Exchange. At IPO the stock IS priced to open at £11.50 per share. This represents a great value proposition.