inKind Credit Fund, LP
Q3 2020
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 IS NOT, AND MAY NOT BE RELIED ON IN ANY MANNER, AS LEGAL, TAX, INVESTMENT, ACCOUNTING OR OTHER ADVICE OR AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY AN INTEREST IN ANY PRIVATE FUND OR ACCOUNT THAT MAY BE OFFERED BY INKIND OR ANY OF ITS AFFILIATES (EACH, A "FUND").

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 PROJECTED RETURNS OR OTHER INFORMATION SET FORTH IN THIS WEBPAGE (THE "PROJECTIONS") ARE HYPOTHETICAL, HAVE BEEN PREPARED AND ARE SET OUT FOR ILLUSTRATIVE PURPOSES ONLY, AND DO NOT CONSTITUTE FORECASTS OR GUARANTEES OF FUTURE EVENTS. THEY HAVE BEEN PREPARED BASED ON INKIND'S CURRENT VIEW IN RELATION TO FUTURE EVENTS AND FINANCIAL PERFORMANCE OF EXISTING INVESTMENTS MADE BY INKIND AND VARIOUS ESTIMATIONS AND ASSUMPTIONS MADE BY INKIND.

THE ADOPTION OF THE TARGET RETURNS PRESENTED HEREIN IS NOT INTENDED TO PREDICT THE PERFORMANCE OF THE INKIND CREDIT FUND ("IK CREDIT FUND"). INSTEAD, THE TARGET RETURNS ARE INTENDED TO PROVIDE ADDITIONAL CONTEXT WITH RESPECT TO IK CREDIT FUND'S INVESTMENT STRATEGY. THE ULTIMATE RETURNS REALIZED BY IK CREDIT FUND WILL DEPEND ON NUMEROUS FACTORS AND ARE SUBJECT TO A VARIETY OF RISKS. THERE CAN BE NO ASSURANCE THAT IK CREDIT FUND WILL ACHIEVE ITS OBJECTIVES OR THAT IK CREDIT FUND WILL BE ABLE TO IMPLEMENT ITS INVESTMENT STRATEGY. AS WITH ALL INVESTMENTS, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RETURNS OF IK CREDIT FUND.

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.

FOR BUSINESS AND PROFESSIONAL INVESTORS ONLY. NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC.
inKind's credit investors earned 17% in 2018, 11% in 2019, and 7% in 2020 - even through COVID.
inKind's unique model has provided low cost capital to 450+ restaurants in the US and Australia with a record industry low default rate of 1.8% in 2019 and 0.5% in 2020 (even through COVID).

inKind's credit investors have never lost money on a portfolio basis.
Existing ways to finance restaurants are risky
Equity
Investments
Rely on profits and great operators to get paid back which is rare. Even great operators couldn't make distributions during COVID.
Loans

Rely on the restaurant choosing to make a monthly payment and staying open for many years. It is very hard to collect on these loans during COVID.
Merchant Cash Advances
Put significant financial stress on restaurants that already can't pay their bills, creating high default rates. Losses were so large to these lenders that 99% have stopped during COVID.
Even during COVID, smart restaurants are winning & there will always be demand to eat out or order in
660,755 restaurants in the USA

$664.2 billion annual revenue
(Sept 2019 - Aug 2020)



inKind's Unique Way of Financing Avoids All of the Traditional Pitfalls
inKind purchases food and beverage (F&B) credit at a discount from a restaurant and then resells that F&B credit to consumers.
inKind's financing relies on consumers buying F&B credit, not payments from the restaurant.
How it works
Step 1: inKind pays $50,000 for $100,000 in F&B credit.
Step 2: inKind sells the purchased F&B credit to consumers as "House Accounts"
inKind credit fund receives the first 107% of sales
inKind finances deals using the debt fund's cash.

The annual return for the debt fund is based on how quickly inKind can recoup and re-deploy capital.

As inKind sells food and beverage credit, the proceeds are returned to the debt fund and are available to deploy to another restaurant.


inKind has built a scalable platform for selling restaurant credit, fast.
Email Marketing
Scalable, beautiful templates for all venue types, supported by analytics to increase open and conversion rates.
In-Store Collateral
inKind will design and print collateral that matches a restaurant's branding for in-store and to-go order distribution.
Social Media
Content generated to educate and convert consumers to visit the restaurant and purchase a House Account.
Embedded Tech Solutions
Tools like our inKind Email Capture can be placed on client websites to capture an industry high 10% of site visitor's email addresses.
inKind has financed over 450 restaurants in 193 deals since 2017
462
Restaurant Partners
$12 Million
In Funding Provided
25%
IRR to Credit Fund per Deal
inKind only looses money if it hasn't sold its F&B credit and the restaurant stops operating
Financials
Will the restaurant go out of business?
Social Validation
Is there a market for the F&B credit?
Offer Determination
How much credit
can we sell?
Industry Low Loss-rates
1. Process driven underwriting

2. Risk Mitigation Strategies
inKind's automated and templated marketing allows us to sell credit efficiently. Restaurants don't have the time, resources or technology background to do this alone.
inKind targets a diverse portfolio which balances returns and potential risk
Category I: Independent

Annual Revenue of
up to $2M


< $50k
Financing Amount



25%

Historic IRR
Category II:
Small Group

Annual revenue of
$2M - $10M


$50k - $200k
Financing Amount



27%

Historic IRR
Category III: Medium Group

Annual revenue of
$10M - $25M


$200k - $500k
Financing Amount



24%

Historic IRR
Category IV:
Large Group

Annual revenue of
$25M+


$500k+
Financing Amount



25%
Historic IRR
Strong performance over a number of years, including COVID-hit 2020
A team with restaurant and finance experience


United by a passion for food and hospitality, matched by the knowledge and know-how to change the hospitality landscape.
Perfect timing to grow rapidly, with our pick of restaurant clients
Restaurant financing solutions pre COVID-19:
Restaurant financing solutions now:
COVID-19 has presented a once in a lifetime opportunity to fund restaurants.

With typical financiers pulling back, inKind can be the sole liquidity provider to the best restaurants.
Fund Key Terms
Returns
  • Fund receives the first 107% of F&B credit sales from a deal.
  • A 7% annualized preferred return on outstanding capital in a deal.
Liquidity
  • Quarterly liquidity.
  • 12 month lock-up period on new money entering the fund (with a 4% fee charged should it be liquidated prior to this lock up).
Integrity
  • The fund will be administered by a third party fund administrator.
  • The fund will be subject to an annual audit.
Fees and Distribution
  • 2% management fee.
  • Opt-in to automatic quarterly redemptions of up to 3 % of the value of their capital account.
Q. How long has inKind been financing restaurants?
A. inKind has been financing restaurants since Q4 2016. While the inKind Credit Fund is a new structure, the existing debt model has been used since used Q2 2018, and inKind has made every quarterly payment due and have not lost any investor's principal investment capital.
Q. What is the minimum investment?
A. The minimum investment in inKind Credit Fund is $250,000.
Q. How much is inKind Credit Fund LP raising?
A. inKind is looking to secure $50m for the 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.


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