$100M & Above Project Equity Funding Through A Private Foundation


Introduction / Description of the Development Foundation:

(Millionaire Mentor University is fortunate enough to work with a company with a relationship with an uber-wealthy Foundation made up of 26 trustees. Many of these Trustees are on the Forbes 400 most wealthy list and the balance include global families that own Family Offices. This is an introduction to this Foundation.)

The mission statement of the foundation requires us to fund projects that have a humanitarian aspect and/or job creation beyond the construction, including long-term economic benefit & job creation. 

We are not a lender or a fund. We are a partner, and we generally take 60% equity. With this funding process, there is no debt service and no payments.

We employ KPMG to audit the books at the end of the year and whatever it is that your business nets, your business pays the Foundation 60% and you retain 40%.

Currently, we have a very strong focus to fund more $100M and above projects in the United States.

We currently view the US economy as stagnant and we think on a large or “macro” level and on a long-term basis. 

Our mission is to create a long-term, economic benefit for many people, not to make our trustees wealthy (they are already wealthy).

This Foundation is not about Wealth Creation, but rather Wealth Preservation.

We are prohibited to solicit by the foundation, so we do not solicit or induce clients to work with us. We only partner on an invitation basis. We’re the silent partner but we are very “hands-on” and take on our fiduciary duty very seriously as we take great responsibility in this role.

It’s a different sort of club and we mirror that if we do things right we will meet the right people and have strong relationships with a handful of people. We play the long game. We do not hold a high yield/quick-on-our-money focus.

The mission and mandate is energy projects and hotel developments. Our focus is on an economic driver or stimulus and/or job creation (which go hand-in-hand).

We focus on construction jobs and sustainable jobs (long-term) to deploy funds into the US with a total project cost of a minimum 100M Euros or $120M US dollars (currently). 

Fees: We do NOT charge any fees nor do we accept projects from brokers that charge fees. We find this to be unethical and our CEO, Mr. Reagan Rodriguez, will not tolerate unethical or illegal practices, and charging upfront fees (if you are not the lender) is unethical and illegal.

If you are approved and only after a Term Sheet is issued, the Foundation will require a $60K refundable due diligence fee. This is required to filter out non-committed applicants. Due diligence fee is refunded during the funding process or if you (the 5th Avenue Client) were to back out of the funding process, for whatever reason.

(This fee can be obtained by going through MMU funding programs!)

Client will NOT forfeit due diligence fee if they withdraw from the process without agreement from funder. We have had some instances where a client changes his/her mind and does not want to proceed, and in those cases the money is returned. We understand that some people have “limiting beliefs” or a "change of heart or direction" and will honor that decision.

Funding timeline:   90 to 100 days after issuance of commitment letter.  

  • Term sheet can be provided within 5 to 7 business days of engagement
  • Terms contingent upon the project and principals passing due diligence process.  
  • Term sheet states the range of negotiable equity share the funder will accept.  
  • After basic due diligence, a firm commitment will be drafted.
  • After due diligence is complete and funder has approved, bankable commitment letter is drafted.
  • Funding takes place 90 to 100 days afterward.

Equity participation: The Foundation invests 100% of project costs and requires 40% to 60% equity based on project’s profit paid as an annuity through 25-year life cycle. We have had one instance where the 5th Avenue client had to give up as much as 80% but those are rare instances, and generally are only in startups and or very speculative projects. 

NOTE: Annual profit share does not pay down the equity.

Buyout Option:  After 5 years, client has the option to buy out equity share of funder/lender.  

Debt Interest Rate:  0%--Since the funding is not a debt structure and is an equity participation of annual profit split between funder and client. The Foundation does not want our partners to have the burden of debt when running a business, so there are absolutely no monthly payments. If you have accrued any debts prior to working with us, please add those debts as a line-item to your business plan and that amount can be approved pending review and acceptance by the Foundation.