Bluestar Flagship Fund LP
By:
Bluestar Equity
Gain equity exposure through this fund of private equity investments.
Location
Canada
Risk Profile
Low - Moderate
N/A
Min. investment
$25,000
Investment Strategy
Core Plus
ARR
16-19% IRR over 5 Years
Horizon
3-5 Years with Redemption Opportunities
Introduction
The Bluestar Equity Flagship Fund provides investors with a focus on high-caliber small and medium-sized enterprises, encompassing both public and private markets. Sector agnostic, the Fund prioritizes small-cap investments that possess strong growth potential, either through expansion into larger enterprises or by becoming attractive stand-alone spinouts.
Key Reasons to invest
Proven Track Record
With a 40-year history of successful investments, Bluestar Equity has a strong reputation for achieving superior returns.
Expert Guidance
A world-class advisory board provides strategic direction to maximize value and growth.
Exclusive Opportunity
This fund marks the first chance for new investors to join Bluestar Equity in a decade.
Project Overview
The primary goal of Bluestar Flagship Fund is to provide investors with regular distributions and equity growth on a risk adjusted basis. This is accomplished through a hand-picked portfolio of public and private investments from companies predominantly based in North America. We provide investors unique access to: solid equity growth;regular quarterly distributions; an exit kicker; and rollover provisions into the main fund.
The Fund has four categories of investment. Marketable securities, private company investing, real estate investing and public company investing.
Marketable securities are cash and cash equivalents. The Fund endeavors to maintain 25% of the Class B partnership capital invested in this category.
Investing in private companies are those in a control position in a private corporation that fit certain criteria, not the least of which are:
1. The business is profitable, or demonstrates the ability to pay preferred dividends or interest.
2. The business has been in operation for over ten years and demonstrated a clear competitive advantage.
3. The business is asset-light and provides services to its customers.
This is as opposed to manufacturing or other businesses that require annual investments into heavy machinery in order to maintain revenues.
Current investment focus will be in the professional services industry, financial services and other business to business offerings that may include software.
Real estate investments are typically longer term, in stable, secure positions. Liquidity is ensured through either partnership with other institutional equity investors or taking positions in properties where the Fund’s position can be bought out through mortgage debt. The latter requires low overall leverage on the properties relative to the appraised value.
Public investing is focused exclusively on spin-offs, mergers and acquisitions, and other corporate event catalysts where it can clearly be seen that the transaction has created a mispricing of the security being purchased. The liquidity of the security is valued, and therefore, typically are involved in companies with significant trading volume and high market capitalization.
Location
Multimedia
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Issuer Overview
Bluestar Equity, is an investment holding company. Bluestar Equity Inc.
owns several professional service businesses. These are either owned directly by Bluestar Equity Inc. or owned directly by non-arm’s length relationships in the case where this is a regulatory requirement for the professional (the lawyer, accountant and investment manager) to own the professional corporation. The company includes legal firms that operate across Ontario primarily as “KPA Law”, a wealth management and insurance company called “Richmond Global Wealth”, a corporate finance firm called “LinkRP Solutions” and a CPA firm called “Bluestar CPA”. The full group of companies we can call the “Bluestar Group”. Bluestar Group creates two strategic advantages in both investment opportunities and day-to-day fund management.
Opportunities for private investment in Bluestar Flagship Fund come from a unique origination method where LinkRP Solutions can offer capital to existing clients. In many cases, LinkRP Solutions will already have been working with clients for years prior to the investment. LinkRP Solutions has usually “turned all the stones” and has experience working with the management before the investment is made. This has directly led to successful investment partnerships over the past several decades.
A key strategic advantage to the Bluestar Flagship Fund is that the professional services from the Bluestar Group complete functions within the fund at below market prices. The fund has engaged Richmond Global Wealth to raise the capital, at a below market agency fee of 8% of capital raised. KPA Law has completed the entire LP Partnership agreement, GP service agreement, investment documentation, and the list goes on.
Both of these firms have charged the fund 50% below market. The reduction in the fees will allow the fund to maintain more capital for investor distributions.