The Leading Edge #005 - Make your deal more attractive to investors

Weekly Word

Welcome to the fifth edition of Edge Management’s new weekly newsletter, “The Leading Edge”! Each week, we'll cover topics about entrepreneurship and our industries of focus, and highlight the latest and greatest at the intersection of innovative insurance and finance.

We’d love your feedback on what you enjoy most about the newsletter and what you’d like us to cover in upcoming editions of The Leading Edge. We look forward to hearing from you!

Insights from the Edge

Advantage of Long-Term Thinking: Tim Ferriss mentioned in an interview that his biggest investing mistakes didn't come from buying the wrong thing. They came from selling the right thing too early. Ties in with the value of long-term thinking.

Solve the right problem: Not as simple as it seems, but great consultants identify clients' true problems and then provide appropriate solutions

True cost of opportunities: Here's one way to evaluate choices when growing your company: what is the cost of choosing one path over another? Or choosing to do nothing at all? Being aware of opportunity costs can positively impact decision-making.

Prioritize your to-do list: If your to-do list feels cluttered and impossible to complete, it's because it is. Cut your list down to "big win" items and attack them first. Once they're done, work down the list.

Value of consistency: Jerry Seinfeld's key to success? Consistent practice. His goal as a comedian was simple: write at least one joke every day. Easy to apply to business. And seems like it worked out ok for Seinfeld.

How To Use Specialty Insurance to Make Your Deal More Appealing to Investors

Seeking funding for your company?

For 25 years, we've helped clients unlock capital in transactions that wouldn't normally be available. How do we do it? Two words: specialty insurance. We "de-risk" deals to make them more attractive to investors. Which also means you'll get the best possible terms on the funding you secure. There are 3 key ways specialty insurance improves your deal:

• Mitigates risks that are of critical concern to investors

• Leverages the balance sheet of global insurance carriers

• Provides investors comfort by bringing a large institution to the table

If your goal is to secure debt financing at the best possible terms, the backing of a global carrier will help. Here's how our solutions can help you get where you want to go:

Way #1: Mitigates risk of critical concern to investors

It's no secret investors care about risk.

Funding sources (debt or equity) want to know about upside potential and downside risk. Specialty insurance solutions ease concerns about downside risk. They synthetically guarantee financial performance of certain aspects of a transaction. Edge performs a risk analysis of your deal and identifies the risks of concern to investors. We then structure and place coverages that mitigate those risks.

Investors rest assured knowing the downside risk of the deal is significantly mitigated.

Way #2: Leverages balance sheet of large insurance carriers

Insurance is an alternative form of capital.

Specialty insurance leverages the financial firepower of global carriers to unlock capital. Bespoke coverages transfer key risks to the insurance markets. And transactions gain the financial backing of huge institutions.

The financial support of a global carrier makes a huge difference for investors and project owners.

Way #3: The backing of large institution provides investors comfort

Some investors don't like to be the only big player at the table.

Institutional investors prefer to know that other institutions are interested in a deal. They don't want to be the only large group at the table. The support of a large insurer in a deal offers investors a level of comfort that might not otherwise be there.

Specialty insurance coverages show investors that another large institution supports a transaction. (At least the covered parts of it!)

Edge specialty insurance solutions enhance the appeal of your transaction. They improve your ability to secure funding. And they strengthen your negotiating position with investors.

Well-structured specialty insurance coverages can unlock capital that wouldn't have been available otherwise. Contact us if you'd like to learn more!

Leading Headlines

🚢 Hyundai's Hydrogen Hybrid Engine: Hyundai Heavy Industries group confirmed the performance of its proprietary LNG/hydrogen hybrid engine. The group's plan is to complete a fully hydrogen-powered engine by 2025.

🌳 Start of the Green Transition?: due to global economic and political factors, we may look back at 2022 as a turning point in the transition to clean energy

📈 Great Investment Environment for ILS: for a wide variety of factors, Managing Director of Fermat Capital Management, believes this may be the best ILS investment environment in the history of the asset class.

Content of the Week

Whenever you're ready, we're here to help.

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Disclaimer: None of this is financial advice. This newsletter is for educational/entertainment purposes only.