Growth capital for private equity backed restaurant groups
Convive Capital Credit Fund I, LP
Q2 2021



Please refer to the Notes and Disclosures section at the end of this webpage for important information on the facts and figures presented below.
Why Fund Restaurants Now?

There is a $10B opportunity for the best restaurant operators to expand in the aftermath of COVID.
By the end of 2020, more than 110,000 restaurants had closed due to COVID.

The best operators in the industry are on the hunt for deals to expand existing operations. Convive Capital is uniquely positioned to be their finance partner.
Proven Model. Consistent Results.
In Q1 2021, the fund returned 4.45% net to investors.

Current projections for 2021 indicate that we will return 17% net back to investors.

To support this growing market opportunity, Convive Capital is seeking an additional $50M in debt.
Our Portfolio
Our portfolio consists of reputable, world-class restaurant groups backed by some of the largest food-focused venture capital and private equity firms.

These groups have proven concepts and use our funding to expand existing operations.
How the Fund is Repaid
Individual Deal Performance
On a per deal basis, the fund makes a 14% preferred annual return.
Fund Performance
Risk & Resilience
Two Methods to Mitigate Risk
1. Over the past 3 years, we have built out a comprehensive underwriting process.

2. By targeting large-scale restaurant enterprise groups, we ensure that risk is distributed across a particular group's portfolio of concepts.
Demonstrated Resiliency
Our model is designed to eliminate downward pressure on restaurants--keeping them open.

Even as 14% of American restaurants were shuttered permanently as a result of COVID-19, the default rate on our portfolio was 0.1%.

In 2020, during the height of the pandemic, the fund still returned 14.6% to investors.
How We Finance Restaurants
Through our differentiated financing model, we purchase food and beverage credit which is sold via a partnership with inKind Cards Inc.
First: Convive Capital buys a bulk amount of food and beverage (F&B) credit in a restaurant. This is typically $1,000,000 in F&B Credit for $500,000 in cash.
Then: inKind Cards Inc. sells the food and beverage credit to consumers as high value gift cards (called House Accounts) through multiple channels.
We only lose money if we cannot sell the food & beverage credit and the restaurant closes.
Selling House Accounts
Thanks to the efficient marketing engine of inKind Cards, the Fund can recoup principal investments faster than traditional financing methods can - in months, not years. This minimizes the risk of restaurant financing and increases the returns for investors.



inKind Cards sells credit through a range of channels (online marketing, social media, reservation reminders).

By obtaining the restaurant's mailing list and social accounts, inKind can target marketing communications to customers who know and love the business.

Automated systems and campaigns help (i) acquire users and (ii) ensure users top up with additional credit when low.
A Win-Win-Win
Convive Capital offers modern financing solution that is great for restaurants, customers, and investors.
Restaurants
No equity dilution or loan to be repaid: restaurants simply provide meals to guests who buy the food & beverage credit.
Customers
Guests get a bonus when they buy food & beverage credit (house accounts). Our data shows that a guest will spend 400% more once they buy a house account.
Convive Capital Investors
The fund offers the highest return and lowest default rate of any restaurant financing method.
The fund starts recouping capital immediately and is usually fully paid within 12 months.
Real Case: Capital Recouped from a Large Enterprise Client
Deal Specs:
Convive Capital received $1M in credit in exchange for $500K in cash.
$70M
Client's average annual revenue
6
Client locations
10
Months to return principal amount back to fund

Future Growth Opportunities
25
Restaurant Groups in Our Sales Pipeline
$50M
Signed Capital Commitments in Q1 2021
$53M
Projected Capital Deployment Needs Over the Next 12 Months
Prospective Clients
Our current pipeline includes over $50M worth of potential deployments through the end of 2021.
Our Team
Seated at the intersection of hospitality and finance, our experienced team can deploy capital efficiently and effectively.
Johann Moonesinghe
Co-Founder & Managing Director
Andrew Harris
Co-Founder & Chief Risk Officer
Matt Saeta
Principal
Dawson Lewis
Principal
Michael Saeta
Principal
Amanda Singer
Vice President
Fund Key Terms
Returns
  • Minimum 12% return guaranteed for first 12 months
  • In Q1 2021, the fund returned 4.45% net
Liquidity
  • 60 day notice
  • 12 month lock-up
  • Optional quarterly redemptions
Integrity
  • GP has invested $1.5M in the fund
  • Third party fund administrator
  • Annual audit
Fees
  • 1% management fee
Q. How long has Convive Capital been financing restaurants?
A. inKind has been financing restaurants since Q4 2016. While the Convive Capital Credit Fund is a new structure, the existing debt model has been used since Q1 2018, and inKind has made every quarterly payment due and has not lost any investor's principal investment capital.
Q. What is the minimum investment?
A. The minimum investment in inKind Credit Fund is $500,000.
Q. How much is Convive Capital raising?
A. inKind is looking to secure $50M for the inKind Credit Fund.
Q: How often will I be updated about my investment?
A: On a quarterly basis, investors receive capital account statements and investor newsletters. At any time, an investor may log in to the investor portal issued by our fund administrator, Goodform, to see all statements and documents related to their investment. We also always welcome calls and emails from our investors.
Q. Do I need to be an accredited investor to invest in the fund?
A. Yes, our funds currently only allow accredited investors.


NOTES AND DISCLOSURES

THIS WEBPAGE IS BEING FURNISHED BY OR ON BEHALF OF INKIND CREDIT FUND LP ("INKIND") ON A CONFIDENTIAL BASIS TO THE RECIPIENT SOLELY FOR THE LIMITED PURPOSE OF PROVIDING CERTAIN GENERAL INFORMATION ABOUT INKIND'S BUSINESS AND OPERATIONAL CAPABILITIES.

THE INFORMATION CONTAINED IN THIS WEBPAGE DOES NOT CONSTITUTE AND SHOULD NOT BE CONSTRUED AS INVESTMENT, LEGAL, OR TAX ADVICE, OR A RECOMMENDATION OR OPINION REGARDING THE MERITS OF THE FUND. EACH RECIPIENT OF THIS COMMUNICATION SHOULD CONSULT ITS OWN COUNSEL, ACCOUNTANT OR INVESTMENT ADVISER AS TO THE LEGAL, TAX, AND RELATED MATTERS CONCERNING ITS INVESTMENT. A POTENTIAL INVESTOR CONSIDERING AN INVESTMENT IN ANY COMMINGLED INVESTMENT VEHICLE AVAILABLE FOR THE FUND SHOULD READ THIS COMMUNICATION IN CONJUNCTION WITH THE SEPARATE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM FOR SUCH FUND. SUCH CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM CONTAINS A MORE COMPLETE DESCRIPTION OF SUCH FUND'S INVESTMENT STRATEGY, PRACTICES, TERMS AND CONDITIONS, RESTRICTIONS, RISKS AND OTHER FACTORS RELEVANT TO A DECISION TO INVEST IN SUCH FUND, AND ALSO CONTAINS TAX INFORMATION AND RISK DISCLOSURES THAT ARE IMPORTANT TO ANY INVESTMENT DECISION. ALL INFORMATION HEREIN IS SUBJECT TO AND QUALIFIED IN ITS ENTIRETY BY SUCH CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM. THE DATE OF THE INFORMATION IS INDICATED HEREIN, AND THE FUND HAS NO DUTY TO UPDATE SUCH INFORMATION.

BY ITS ACCEPTANCE HEREOF, EACH RECIPIENT OF THIS WEBPAGE ACKNOWLEDGES AND AGREES THAT THIS WEBPAGE MAY NOT BE REPRODUCED OR PROVIDED TO OTHERS, IN WHOLE OR IN PART, NOR MAY ITS CONTENTS BE DISCLOSED WITHOUT THE PRIOR WRITTEN CONSENT OF INKIND, AND THAT THE RECIPIENT WILL KEEP CONFIDENTIAL ALL INFORMATION CONTAINED HEREIN NOT ALREADY IN THE PUBLIC DOMAIN.

THE PERFORMANCE INFORMATION SET FORTH HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IN ADDITION, THE PERFORMANCE INFORMATION CONTAINS VALUATIONS OF INVESTMENTS THAT HAVE NOT BEEN FULLY REALIZED AS OF THE DATE OF THIS REPORT. THERE CAN BE NO ASSURANCE THAT ANY OF THESE VALUATIONS WILL BE ATTAINED AS ACTUAL REALIZED RETURNS WILL DEPEND UPON, AMONG OTHER FACTORS, FUTURE OPERATING RESULTS, THE VALUE OF THE ASSETS AND MARKET CONDITIONS AT THE TIME OF DISPOSITION, ANY RELATED TRANSACTION COSTS AND THE TIMING AND MANNER OF SALE, ALL OF WHICH MAY DIFFER FROM THE ASSUMPTIONS UPON WHICH THE VALUATIONS CONTAINED HEREIN ARE BASED. CONSEQUENTLY, THE ACTUAL REALIZED RETURNS MAY DIFFER MATERIALLY FROM THE CURRENT RETURNS INDICATED IN THIS COMMUNICATION. THE FUND MAKES NO REPRESENTATION, AND IT SHOULD NOT BE ASSUMED, THAT PAST PERFORMANCE IS AN INDICATION OF FUTURE RESULTS. THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO EARN THE RATES OF RETURN INDICATED HEREIN.

CERTAIN INFORMATION ON THIS WEBPAGE CONSTITUTES "FORWARD-LOOKING" STATEMENTS WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS "MAY," "WILL," "SHOULD," "EXPECT," "ANTICIPATE," "ESTIMATE," "INTEND," "PROJECT," "TARGET," "CONTINUE" OR "BELIEVE" OR THE NEGATIVES THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE TERMINOLOGY. FURTHERMORE, ANY PROJECTION OR OTHER ESTIMATES IN THIS PRESENTATION INCLUDING ESTIMATES OF RETURNS OR PERFORMANCE, ARE "FORWARD LOOKING STATEMENTS" AND ARE BASED UPON CERTAIN ASSUMPTIONS THAT MAY CHANGE. DUE TO VARIOUS RISKS AND UNCERTAINTIES, ACTUAL EVENTS OR RESULTS OR THE ACTUAL PERFORMANCE OF THE FUNDS DESCRIBED HEREIN MAY DIFFER MATERIALLY FROM THOSE REFLECTED OR CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS. RECIPIENTS OF THIS WEBPAGE SHOULD PAY CLOSE ATTENTION TO THE ASSUMPTIONS UNDERLYING THE ANALYSES AND FORECASTS CONTAINED HEREIN.

INKIND CARDS, INC WHICH SOURCES THE FUND'S FINANCING OPPORTUNITIES AND SELLS THE FOOD AND BEVERAGE CREDIT IS THE 100% OWNER OF THE FUND'S GP. THE FUND MAY LEND TO INKIND CARDS, INC AGAINST THE FUTURE ACCOUNT RECEIVABLES OF EACH FINANCING AT AN INTEREST RATE OF 15.0% PER ANNUM.

MANY OF THE FUND'S CURRENT LPS ARE ALSO INVESTORS IN INKIND CARDS, INC., INCLUDING EZRA GLASS, THE MAJORITY OWNER OF THE FUND'S THIRD-PARTY FUND ADMINISTRATOR, GOODFORM.

FOR BUSINESS AND PROFESSIONAL INVESTORS ONLY. NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC.