Connecting Investors with Opportunity
Demeter Investment Holdings (“Demeter”) is a Cayman Islands incorporated Special Purpose Vehicle founded in 2018 and is part of the EIO Holdings Group. Its core purpose, through the issuance of bonds and similar instruments, is to assist institutions and qualified investors (UHNWI/HNWI) develop unique investment structures to help them achieve specific financial objectives.
Demeter works exclusively with an investment advisor, The Entrepreneur’s Investment Office Ltd (“EIO” or “Investment Advisor”), which is regulated in the UK and UAE [visit EIO website]. EIO provides financial advice to Demeter when designing the investment structure that drives the solution to the investor’s (“Investor”) objective.
Demeter’s flagship programme is a USD 1.5 billion European Medium Term Note (‘EMTN’) that is listed on the Vienna MTF Exchange. Under the bond programme Demeter issues a number of series (‘Series’), which are built around a specific investment strategy, developed by Demeter’s lnvestment Advisor and the Investor.
The Investment Advisor uses it’s three dimensional approach to address the specific financial need or situation for the Investor, namely:
- The Foundations – How will my capital be secured?
- The Frame – What shall the capital be invested in?
- The Finishings – How will I structure the return?
Demeter then uses one of their Series issued under the EMTN programme to issue the bond which is the bedrock to the Investor’s specific objective. By using the three dimensional approach the Demeter bond’s help drive a successful outcome for its stakeholders.
Demeter believes its investment programmes should place the funding into highly liquid, deep public markets in the world’s more recognised asset classes – Currencies, Gold, Oil, ETFs and Indices. They often use leverage to amplify returns to the investor. Each structure is curated for the specific situation and objectives of the individual investor but is dependent on the bond as the backbone of the solution.
Demeter’s bond programme
Most commonly used in three scenarios
- Investment Model: The bonds use leverage, which is reinvested into the same strategy, to generate higher returns. When generating the better returns, they do not materially increase the risk profile of the underlying assets invested into rather they simply reinvest in more of the same.
Case Studies: UHNWI who have both high levels of assets and liabilities but limited liquidity – this provides constant cash flow and distributions.
- Trading Model: For the highly sophisticated investors we can deploy liquidity into trading strategies to further enhance returns. The trading is undertaken by a range of algorithms and arbitrage programmes that Demeter has identified, due diligance and tested with its own capital.
Case Studies: Investors who wish to achieve alpha but are adverse to leverage.
- Leverage Model: In certain limited circumstances they can be used as liquidity for investing in certain specific end uses.
Case Studies: An institution wants to sponsor a project and wishes to use the Demeter programme to inject liquidity and/or profits from the Demeter programme as a source of funding.
Demeter is only permitted to sell its bonds to qualified or institutional investors (or its equivalent in other jurisdictions). It cannot receive funds from any retail clients. Currently Demeter has the following bonds listed:
Series 3 – A USD 500 million (Closed).
Series 5 – A USD 500 million bond, pays a target coupon of 12% (Open).
Series 6 – A USD 200 million bond, pays a fixed coupon of 2% plus 50% profit (Open).
Series 9 – A USD 250 million bond (Closed).
Common Features About Each Series
Whilst each series has its own unique purpose and its individual characteristics, all of them have the following common features;
- The maturities are between 3-5 years (except Series 9 which is 15 years)
- The notes have low fixed coupons but either a high target coupon or profit share to enhance investor returns
- The bonds are secured by highly rated assets – highly rated fixed income, US Treasuries and/or cash to protect investor capital
- All Series are listed on the Vienna MTF exchange
- Demeter partners with a number of global and private banks where assets are purchased, put in custody and, where relevant, pledged to the Security Trustee
- The service providers (Security Trustee, Registrar, etc) are all regulated by Tier 1 regulators
What Are the Proceeds Invested Into?
This varies from Series to Series but again there are common themes;
- The bond proceeds are invested via the banks into either high quality (A rated or better) fixed income, cash and US Treasuries (the “Securities”).
- The Securities are pledged to the banks (not the Investor).
- The banks provide leverage against the Securities.
- The proceeds of the leverage are invested into the;
- Investment Model,
- Trading Model, or
- Leverage Model:
- The trading strategies are called Underlying Assets.
- The Underlying Assets are pledged, via the Security Trustee, in favor of the bondholders.
We seek to outperform the asset management, private bank and money manager returns by some margin whilst using high quality collateral to secure the bond. The use of technology, algorithms and automation are substantially preferred over human judgement. We avoid more illiquid and exotic asset classes preferring to stay exposed to the world’s largest and most liquid investments. Each strategy does bear its own risks and returns and these issues are explained extensively with the investor, as a real partnership.
Demeter Investment Holdings listed in January 2022 with a USD 1.5 billion European Medium Term Note on the Vienna MTF exchange. It consists of a range of Series. To find out about any series please complete your contact details below:
PPM Series 3 (Closed)
PPM Series 5 (Open)
PPM Series 6 (Open)
PPM Series 9 (Closed)
Should you wish to partner with Demeter to create a specific series please contact the team. A Series requires a minimum subscription of USD 100 million and must be similar in nature to the existing Demeter Series. Once the Demeter EMTN programme is fully allocated it will be looking to extend a new programme.
Demeter seeks to become the leading asset manager in the areas that it plays in – not by size but by performance and by relationship with its key stakeholders. It considers itself more of a multi-brand owner of businesses. However, instead of the businesses being separate brands or outlets, they are separate investment strategies or a different series of the bond programme. Each of these series has a different sub strategy or object but still has the commonality of the overall multi brand owner through the continuation of core values and structures that bring the portfolio together.
Demeter wants to build an ecosystem that is valued and cherished, not just by itself but also all of its stakeholders, who help look to protect the platform – perhaps just as the ancient goddess would have liked to have done.
+1 345 949 8066
PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands
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