Investor Mandate: Homeland Safety, Lending and Convertible Bonds
Private Equity, Lending, & Alternative Investment Investor Mandate Interview
Investors and capital raisers who want to understand how a European minority co-investor picks sectors, structures a deal and negotiates terms.
In their words
"Try to make sure, look into their eyes, that they are honest and that you can rely on them, because good people could even turn a bad company into a very good one."
"I would like to invest in a convertible bond first, which is a mandatory one, so they know eventually it will turn into equity."
"You know, negotiation is part of the game. Don't take everything on the face of it."
The short version
The Zurich-based guest describes a mandate built on minority stakes and co-investors. A former head of ultra high net worth at a leading Swiss bank, the guest later turned a family office into an investment company. Co-investors give feedback and a sense that the decision is sound.
Two areas stand out right now: homeland safety and lending. The guest describes using a mandatory convertible bond that is meant to pay income and later become equity. The talk closes with advice to back honest people, follow market trends and negotiate terms, since, in the guest's experience, most companies expect it.
Key facts
- The guest describes investing through a mandatory convertible bond that is meant to turn into equity after about two years.
- The guest describes the convertible bond as paying about 5% in Swiss franc terms, at a time when Swiss interest rates were negative.
- The guest's geographic split used to be 50/50 between Europe and the US.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Private Equity, Lending, & Alternative Investment Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around convertible bond terms, minority co-investment structures and offering documents. Do not use AI to write your own legal agreements.
5 key takeaways
- Co-invest as a minority holder. The guest is usually not the majority investor. They want co-investors for feedback and for the confidence that the investment is the right one.
- Homeland safety is a priority. The first investment was in a Swiss company working on emergency management, disaster recovery, first responders, city safety, border safety and airport security. The guest says it is flooded with new projects.
- Lending draws steady demand. The guest likes P2P and small business lending. Borrowers want safety and peace of mind in an uncertain environment, and interest levels in Europe are relatively low.
- Mandatory convertible bonds add income. The guest describes negotiating a mandatory convertible bond that is meant to turn into equity. The guest describes it as paying about 5% in Swiss franc terms over roughly two years, with an equity stake as the expected outcome. In the guest's experience, owners tend to like the arrangement.
- Negotiate and back good people. The guest advises looking people in the eye and judging if they are honest. They also say to negotiate, because in their experience it helps both sides and most companies expect it.
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What kind of investor is the guest?
The guest is a minority investor who works with co-investors. They came from Swiss private banking, ran a family office for 10 to 12 years and now run an investment company.
How does the guest structure investments?
The guest describes negotiating a mandatory convertible bond that pays income over about two years, around 5% in Swiss franc terms, and is meant to turn into equity.
How does the guest view US versus European deals?
The split used to be 50/50. Today the guest invests in US businesses mainly when a co-investor has met the managers in person, because digital meetings feel artificial.
Put this into practice with the family office fit check. See all investor mandates resources.
