Emporium Fund

Defaulted Debt-Precious Metals-Venture Capital-Public Equity Exchange
Prospectus Coming Soon

NOTICE: THIS FUND IS IN FORMATION. THE INFORMATION PRESENTED HERE IS FOR ILLUSTRATION PURPOSES ONLY. ONCE OPERATIONAL THE MINIMUM INVESTMENT REQUIRED WILL BE USD$5,000,000 AND ONLY VERIFIABLE ACCREDITED INVESTORS WILL BE ALLOWED. WHEN THE FUND HAS BEEN LEGALLY ESTABLISHED AND IS OPERATIONAL THE “REQUEST A PROSPECTUS” BUTTONS WILL BECOME CLICKABLE AND THIS MESSAGE WILL BE REMOVED.

The Emporium Fund, Ltd. (the “Fund”) will be a newly organized closed-end, diversified, protected-cell, investment company (or non-recognized unregulated collective investment scheme under UK law) designed to serve as the optimum mechanism to take maximum advantage of the opportunities that currently exist in the precious metals, defaulted debt and venture capital markets while also allowing for holders of large blocks of public equities to “exchange” some of those equities for Shares of the Fund. The Fund is unique in that it may be an active participant in the management and operation of some or all of the investments that it makes.

Justice Is Our Priority

The primary focus of the Fund will be to rectify injustices.

In the Defaulted Debt Sector/Cell the Fund will assist holders of certain defaulted or distressed debts to collect upon those debts or monetize their claim values to recover as much value as possible. 

In the Venture Capital Sector/Cell the Fund will help level the playing field when new, small, companies, have to compete with large corporate conglomerates. This will be done through the use of a consortium structure that will eventually link the collective strength of hundreds of companies.

The Precious Metals Sector/Cell creates a safe haven from all of the economic madness going on in the world while paving the way for the creation of a new gold backed crypto-currency.

The Public Equities Exchange Sector/Cell will be to assist investors who hold concentrated positions in publicly traded securities to diversify those holdings in a strategic and efficient manner while participating in the broader opportunities offered across all sectors of the Fund.

Coming Soon

Initial Share Price in USD

Current Assets in USD

Shares being sold in IPO

Primary Investment Areas

Distressed/Defaulted Debts

This sector will use a hands-on approach to investing initially in German defaulted debt opportunities. The primary focus of this sector will be on opportunities where debt instruments or claims can be acquired at steeply discounted prices and these debts/claims can potentially be (1) swapped for equity (debt/equity swaps), (2) traded directly or indirectly for precious metals, (3) securitized to create interest rate arbitrage opportunities, (4) resold at substantial profits after undergoing asset enhancement procedures, or (5) collected upon from their issuers either with or without litigation. This sector may also invest in distressed farmland, water rights, mining claims and patent claims. This sector will specifically include defaulted gold backed debt instruments issued by German issuers circa 1924-1930 that still represent valid legal obligations of the original issuers, the German Government itself and potentially the U.S. Government. The German Gold Bonds  that are being used to seed this Fund have a combined “legal claim value” of at least $3 billion ($30m per bond). The bonds are being added into the initial capital of the Fund in exchange for $50,000,000 worth of Fund Shares at $20 per Share. The Fund will carry the bonds at only 1.67% of their “legal claim value” giving the Fund significant upside potential if settlement at even a fraction of the legal claim value can be obtained through either collection on the claims, litigation or monetization efforts.

Precious Metals

Aside from the fact that this sector will grow very quickly through trades of Fund shares for shares of publicly traded legitimate mining companies, the most unique aspect is that this Sector will have the ability to sponsor the creation of a gold backed crypto currency aided by the billions of dollars of claims the Fund has to gold represented by the German gold bonds.

This sector will invest very heavily in the physical ownership of gold and silver along with “gold and silver notes” (effectively warehouse receipts representing fractional interests in the direct ownership of gold and silver bullion).

This sector will also be expected to hold positions in other precious metals as opportunities arise and will likely maintain a small basket of non-U.S. currencies for short-term liquidity needs including small holdings in speculative currencies that have the potential of revaluing in the near future such as the Iraqi Dinar (IQD) and the Zimbabwean Dollar (Zim).

Venture Capital

This will be the most unique Venture Capital operation to ever exist. All investee companies will come from an incubator, all will join a consortium with each of the other investee companies pledging to assist each other as needed, joint venture where possible, co-op the purchase of needed supplies and participate in joint offerings of SCOUTS (Small Cap Opportunity Unit Trust Shares) that will help to capitalize each company.

The Fund will establish a crowd funding portal to assist the investee companies and the Fund will also establish its own private stock exchange, without brokers, where the shares of each investee company and the Fund itself, will trade without fear of being shorted or being used in derivatives.

The Venture Capital Sector will fund as many as 300 new ventures each year that will all be assured to succeed. It is impossible to know what new technologies, ideologies and innovations those companies will bring to the world but chances are they could be quite substantial.

Public Equity Exchange Sector

This sector will provide a unique opportunity for holders of publicly traded and listed shares to exchange a portion of those holdings for Shares of the Fund without the need to immediately liquidate their positions in the open market.

The primary focus of this sector will be to assist investors who hold concentrated positions in publicly traded securities to diversify those holdings in a strategic and efficient manner while participating in the broader opportunities offered across all sectors of the Fund.

This will be accomplished by allowing investors to contribute shares of publicly traded companies to the Fund in exchange for Fund Shares at an initial price of $20 per Share. As the Fund grows and its Shares become admitted for trading on a recognized exchange such as London AIM or Euronext, subsequent exchanges will be completed at the then current trading price of the Fund’s Shares.

The shares contributed to this sector will be diversified across multiple industries and issuers and may be held, reallocated or utilized in conjunction with the other sectors of the Fund to support structured financing transactions, collateralization strategies and additional investment opportunities.

This sector is expected to grow rapidly through the exchange of Fund Shares for shares of publicly traded companies and will play a critical role in strengthening the overall capital base of the Fund while providing additional flexibility and scalability across all sectors.

Key Investment Attractions

We believe that we offer investors the following attractions:

  • The potential for long-term capital growth with the expectation of regular dividends starting after 2 years of operation;
  • A Preferred “Hurdle Rate” of 8% before the Investment Manager receives a participation in profits;
  • A mandate that all investors must receive dividends equal to 100% of their investment before the Investment Manager can receive any Performance Fees;
  • The opportunity to profit from Distressed Debt, Precious Metals, Venture Capital and Public Equity Exchange opportunities that are not otherwise available;
  • The ability for investors holding publicly traded securities to diversify their positions through participation in the Public Equity Exchange Fund sector;
  • Diversification with regard to currencies, sectors, asset classes and geography;
  • An experienced and professional team of portfolio managers;
  • A manager that is motivated to maximize returns to Shareholders through a performance based management fee structure;
  • An opportunity for investors to participate in situations where miscarriages of justice may be corrected; and
  • Tax free distributions for Jersey tax resident individual investors for foreign sourced income of the Fund.

Prospectus Expected Soon

Important Notices

Subscriptions to this Closed-End Investment Fund are restricted to certain qualified investors only in jurisdictions where this Offering can legally be made.

This Fund has the potential for 100% loss of capital allocated to it and speculators should be aware of the extreme degree of risk involved in this type of investment.

These securities involve a high degree of risk. There is currently no public market for the Fund’s shares and there can be no assurance that a public market will ever be developed for these shares. Equity securities of closed-end funds have frequently traded at discounts from their net asset values and initial offering prices. The Fund itself will not redeem its Shares.

For a discussion of other significant risks that should be considered by potential investors, see “Risk Factors and Special Considerations.” in the Prospectus.

INVESTMENT IN THE FUND INVOLVES SPECIAL CONSIDERATIONS AND RISKS THAT SPECULATORS SHOULD CONSIDER PRIOR TO INVESTING IN THE FUND. SUCH RISKS INCLUDE THOSE ASSOCIATED WITH INVESTING IN DEFAULTED DEBT INSTRUMENTS, VENTURE CAPITAL, PRECIOUS METALS AND PUBLIC EQUITIES GENERALLY AND IN SECURITIES SPECIFICALLY THAT HAVE BEEN IN DEFAULT FOR DECADES, THE VALUE AND VALIDITY OF WHICH ARE IN DISPUTE WITH THE ISSUER OF THE SECURITIES. INVESTMENT IN DEFAULTED DEBT GENERALLY SHOULD BE CONSIDERED EXTREMELY SPECULATIVE. SHARES OF CLOSED-END INVESTMENT COMPANIES HAVE IN THE PAST FREQUENTLY TRADED AT DISCOUNTS TO THEIR NET ASSET VALUES AND INITIAL OFFERING PRICES. THE RISKS ASSOCIATED WITH THIS CHARACTERISTIC OF CLOSED-END INVESTMENT COMPANIES MAY BE GREATER FOR INVESTORS EXPECTING TO SELL SHARES OF A CLOSED-END INVESTMENT COMPANY SOON AFTER THE COMPLETION OF AN INITIAL PUBLIC OFFERING OF THE COMPANY’S SHARES. SEE “RISK FACTORS AND SPECIAL CONSIDERATIONS.”