Step 1: Putting in the groundwork to bring new investments to our platform
We have a dedicated team who source the range of investments that we list on our platform. We work with businesses and organisations across a range of sectors, as well as government departments, and councils.
Our aim is to find the projects and companies that are looking to offer debt investments, which are the type of investments we offer to customers. We try and listen to our customers, and find the type of companies and projects they want to invest in, that also meet our mission of helping deliver a Net Zero future.
In the case of our council investments, we work with councils from across the UK who are looking to raise funding from their local residents and other people. By coming together, investors, residents and local councils can make a collective impact on building a better future, and share in the financial benefits.
Often, one of the attractions for companies and local authorities is the fact that Abundance allows them to create a real relationship with their investors. We have carved a new space in the sector by taking these investments to the crowd, and built a reputation in the infrastructure market for being an excellent finance partner, which means we have a large and varied pipeline of investments in development at any given time.
Step 2: We focus on quality in execution
Once we have identified a project or development that is a good target for a debt investment, we move into the execution phase. The process for preparing an investment is quite different depending on whether it is a company or council issuing the investment, due to the different structure and risks inherent in each investment.
Each company investment offer generally takes between 3 and 6 months to get ready to launch. Our experienced investments team carries out extensive and detailed due diligence of the company, its governance and the project being considered. This covers the technical, legal, corporate and financial aspects of the investment, plus the legal work to produce the required investor documentation. It also means we get to know the management teams very well and how they deal with the challenges that go with running any business or project.
This level of detail and quality control is important to us because we believe ordinary investors should get the same quality offers as the banks or large funds. This is also why we chose the path of FCA authorisation from the outset; we believe in the merits of good regulation. It might mean our offers take more time to put together, but it also means every element of every offer we launch has been examined by our expert team.
Step 3: Long term service for long term investments
Once an offer is funded our work doesn’t stop. We work with each company and council to administer the payment of investment returns over the life of the investment, provide updates to investors with important information about the investment, and provide additional services like the marketplace.
Our investments team continue to work closely with each company and council after it has raised the money it needs, staying in regular contact with the issuer over the life of the investment.