Investors

Leeward’s Source of Capital

Leeward functions as a private investment fund sponsored by a number of Business Development Corporations as well as a network of family offices and high-net-worth individuals. These investors are seeking direct private placements through a unique structure that can deliver current income and equal or better returns at lower risk than direct investment strategies.

Investor Securities

Investors receive Convertible Preferred shares in a U.S. Virgin Islands C-Corp which would be the beneficiary of one of the Territory's two economic development programs. The Preferred Equity security comes with a significant monthly or annual distribution component which is taxed at dividend rates making the investment ideal for investors seeking current income in excess of 10% of invested capital.

U.S. Virgin Islands Economic Development Benefit

The following table illustrates the comparative benefit of Leeward’s U.S. Virgin Islands’ economic development tax structure on $100 of income:

Investors

1 USVI-Corp assumes the entity qualifies for participation in one of the USVI tax programs and income is eligible

2 US LLC/Passthrough tax assumes ordinary federal and state income tax, which would vary by state

3 This summary is for explanation purposes only and is not intended to constitute tax advice

Multiple on Invested Capital

Leeward typically delivers a multiple of invested capital "MOIC" of between 1.5X and 2X if the ASP agreement terminates within 5 years. Leeward's investors are ensured of a consistent IRR regardless of term due to escalators within the ASP contract.

Risk Profile

The critical nature of the Company's'' ERP/IT platforms to its business model allows Leeward's investment to have a risk profile similar to if not better than secured debt. The nature of the Leeward's deal structure ensures Leeward's interests are protected in the event of a distressed situation.

Investment Horizon

Leeward's investment horizon may extend well beyond traditional private equity investments. Capital is deployed longer delivering a higher MOIC in assets with a significant income component.