Lending to a business. Repaid ahead of its owners.
- Returns come from interest agreed at the start, not from growth.
- Lenders are repaid before owners if the business struggles.
- The upside is limited to the agreed terms.
Private markets, London
Know where you stand before you invest.
Drum Capital introduces private-market opportunities and provides information to help you make your own decisions. We do not manage wealth or offer investment advice.
Where an opportunity sits in a structure decides how you are paid, when, and what you could lose.
Where you stand
Lenders and owners stand in different places.
The lower layers of a structure carry less risk and less upside. The upper layers carry more of both.
Owning part of a business. Repaid after its lenders.
- Returns depend on the business growing in value.
- Owners are repaid last, and can lose everything they put in.
- Money is often committed for years, with no easy way out.
General explanations, to be checked by compliance. Not a description of any Drum Capital opportunity.
Due diligence
Read the structure before the story.
Four questions any opportunity should answer plainly. If one of them can’t be answered, that is an answer too.
Where does the money go, and where would you rank?
Who receives it, what it is secured against, and who is repaid ahead of you if things go wrong.
- The business or vehicle that receives the money
- Any security or assets behind it
- Everyone who ranks ahead of you
What are you signing up to?
How long your money is committed, what it pays or could earn, and every fee taken along the way.
- How long your money is committed
- What it pays, or how it could earn
- Every fee, and who receives it
What could cause a loss, and who takes it first?
Losses land on the top of the stack first and work down. Know which layer you are in before you look at the return.
- The events that would cause a loss
- The order in which losses are absorbed
- What you could lose in the worst case
How, and when, do you get your money back?
What the planned exit is, how long it could take, and what happens if you need your money sooner.
- The planned exit and its timing
- What happens if the exit is delayed
- Whether you can leave early, and at what cost
Your route
From introduction to your own decision.
- 1
You make an enquiry
Tell us who you are and what you would like to understand. We check whether an opportunity can be shown to you.
- 2
You receive the information
Structure, terms and material risks, set out in writing, before anything else.
- 3
You decide
In your own time, and with your own adviser if you have one. We do not give advice.
Start with a question. Nothing is shown to you until we know an opportunity can be.
Make an enquirySteps to confirm with the owner before launch.
Enquiries
Make an enquiry.
Opportunities can only be shown to certified high net worth individuals and self-certified sophisticated investors. Tell us which applies to you first.