Taking the risk out of restaurant financing
inKind Credit Fund, LP presentation
Q4, 2020
Typical Forms of Restaurant Financing
They all failed during COVID
Equity Investments
Very high risk
Loans
High risk
Merchant Cash Advances
High risk
inKind financing was designed to reduce risk
During 2019, our default rate was 1.8% in 2020 it is 0.1%
How inKind Finances Restaurants
First: inKind buys credit in a restaurant
Then: inKind sells the F&B credit to consumers
inKind's Unique Financing Model
Greatly Reduces the Risk
We only lose money if we cannot sell the F&B credit and the restaurant closes
inKind's first client
Financing that is a win for all involved
Restaurants
Low cost capital
Customers
Bonus credit
inKind
Quick recoup of capital
WIN for restaurants - lowest cost capital
WIN for customer - bonus credit
WIN for inKind - quick recoup of capital


Reduces deal exposure

Available to re-deploy to the next deal
WE GIVE MONEY TO RESTAURANTS IN A WAY THAT RESTAURANTS LOVE
85% of restaurants work with us multiple times
Historic Returns
426
Restaurant Partners
$11.5 Million
In Funding Provided
26%
IRR per Deal
inKind Risk: The restaurant closes while we still hold credit
inKind greatly reduces the risk in restaurant finance
Perceived risk - 90% of restaurants close in 5 years.

Actual risk: We are in and out of a restaurant deal in 7 months, and can predict and help maintain them for this long.
1. We use underwriting to determine how much credit to purchase
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?
2. We prevent inKind funded restaurants from closing
We provide cashflow management help (for independant pay their rent and sales tax)

Online marketing for restaurant to increase revenue
3. In the worst case, we still recover capital
Sell credit quicker
Increase the bonuses to sell credit quicker
Secured Credit and Personal Guarantees
We require personal guarantees for owners of the restaurant
Enforceable Contracts
We've had 100% success in winning arbitration awards
inKind Credit Fund receives 7% per funding
The quicker we sell credit, the quicker we can re-deploy
capital, increasing gains.
inKind is incredibly efficient at selling restaurant credit
The Fund's Team
Johann Moonesinghe
Fund Manager
Serial investor with pre-Series A positions in Uber, Sendgrid and All Birds, amongst others. Over thirty hospitality investments. Establish restaurant operator.
Andrew Harris
Fund Manager & Risk Analyst
Graduate of the London School of Economics and former corporate lawyer with Linklaters LLP. Andrew has also owned and operated restaurants for the last five years.
Derek Keller
Finance Director
Former investment banker and venture capitalist, most recently with Techstars Ventures and Highway 12 Ventures. Served as CFO at both Pilotworks and Lendio.
inKind Credit Fund Details
COVID-19 has presented a once in a lifetime opportunity to fund restaurants.


Raising $50m into Credit Fund
Projected Fund Portfolio Composition
85% of inKind's portfolio is in restaurant groups with $10m+ revenue
Category I: Independent
10%
Target Portfolio Composition

Annual Revenue of
up to $2M

Typically 1 location with owner-operator
-
< $50k
Financing Amount
Category II:
Small Group
15%
Target Portfolio Composition

Annual revenue of
$2M - $10M

Typically 2 - 5 locations with back office support
-
$50k - $200k
Financing Amount
Category III: Medium Group
25%
Target Portfolio Composition

Annual revenue of
$10M - $25M

Typically 6 - 15 locations
with head office
-
$200k - $500k
Financing Amount
Category IV:
Large Group
50%
Target Portfolio Composition

Annual revenue of
$25M+

Typically 15+ locations with management firm
-
$500k+
Financing Amount
Fund Key Terms
Returns
  • First 107% of F&B credit sales from a deal.
  • A 7% annualized preferred return on outstanding capital in a deal.
Liquidity
  • 60 day notice.
  • 12 month lock-up.
  • Optional Quarterly redemptions.
Integrity
  • Third party fund administrator.
  • Annual audit.
Fees
  • 2% management fee