Taking the risk out of restaurant financing
inKind Credit Fund, LP presentation
Q4, 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.
Typical Forms of Restaurant Financing
All failed during COVID
Equity Investments
Very high risk
Loans
High risk
Merchant Cash Advances
High risk
inKind financing was designed to be low risk while producing a strong yield
How inKind Finances Restaurants
First: inKind buys a bulk amount of Food and Beverage (F+B) credit in a restaurant. This is typically $100,000 in F+B Credit, per location
Then: inKind sells the food and beverage credit to consumers as House Accounts / gift cards through multiple online channels.
inKind Credit Fund receives 7% per funding



With each deployment to a restaurant, inKind earns 7%.

As soon as capital is deployed, we begin selling credit and recouping the capital. As we recoup capital, we can deploy it to the next restaurant.


The quicker we sell credit, the quicker we can re-deploy
capital, increasing gains.
If we recoup deployed capital in 12 months, the inKind Credit Fund will receive a 7% return.

If we recoup the capital in 6 months, the fund will receive a 14.5% return.

inKind is targeting a 12 month period (1 turn) during COVID and then expect to return to a 7 month period (1.4 turns) in 2021, and a 4 month period (3 turns) in 2022.

inKind is incredibly efficient at selling restaurant credit

inKind sells credit through a range of channels

- online marketing,

- in-store collateral,

- reservation reminders.
inKind Financing is a modern financing solution that is great for the restaurants, customers, and inKind
Restaurants
Low cost capital as they "pay" back by just providing food and drinks to guests

No Equity
No Loan
Customers
Get bonus credit for paying in advance

Become even more loyal customers of the restaurant


inKind Investors
Quickly recoup capital through the sale of credit


Very low risk

Reliable returns
The proof is in the pudding
85% of restaurants work with us multiple times
We have funded The Ravenous Pig 7 times - from expanding the patio during COVID to providing the down payment for buying their building (inKind financing is considered "deferred revenue" and so can be borrowed against)
Historic Returns
426
Restaurant Partners
$11.5 Million
In Funding Provided
13%
Average Annual Yield
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.
We use underwriting to determine how much credit to purchase
Financials
Is the restaurant currently sustaining itself?
Social Validation
Is there a market for the F&B credit?
Offer Determination
How much credit
can we sell?
In the worst case, we still recover capital
Sell credit quicker
If we want to exit a deal, we can increase the bonuses to sell credit quicker.
Secured Credit and Personal Guarantees
We make UCC-1 (secured creditor) filings to secure our position in the stack and require personal guarantees.
Enforceable Contracts
We've had 100% success in winning arbitration awards to enforce our position.
The Fund's Team
Our fund team has experience in investing, legal and portfolio management
Johann Moonesinghe
Fund Manager
Expert in restaurant finance and operations. Over thirty personal hospitality investments. Established restaurant operator. B.S. in Computer Science, UCLA
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
With other funding sources such as private investors and loans pulling back, COVID-19 has presented a once in a lifetime opportunity to fund restaurants.

The next 36 months will provide an excellent opportunity for the best restaurant operators to grow, and for inKind to be their financing partner.


Raising $10MM into Credit Fund in Q4 2020 and $140MM in 2021
6 Month Pipeline
inKind has a pipeline of experienced restaurant operators who are stable in the current climate and see tremendous opportunities ahead.
Fund Key Terms
Returns
  • Minimum 9% return guaranteed for first 12 months.
  • During non-COVID times, returns have historically been 14%.
Liquidity
  • 60 day notice.
  • 12 month lock-up.
  • Optional Quarterly redemptions.
Integrity
  • GP has invested $1.5MM in the fund.
  • Third party fund administrator.
  • Annual audit.
Fees
  • 1% management fee.
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 $150MM 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.