Category: Asset Management

spotify unicorn slayer executive liquidity IPO

This is no Aprils Fools…

This is another case of unicorn slaying.  Lets see how this slay unfolds. Recently Spotify issued a $1B convertible debt from TPG, Dragoneer, and Goldman Sachs clients. We will call them the VC mob (VCM).

Terms:

  1. VCM can convert the debt to equity at a 20% discount of the IPO price.  (print money baby!!)
  2. If no IPO within 1 year, the carnage, oops, I mean the discount increases 2.5% and the interest on the debt (5%) will increases 1% maxed out to 10% every six months there after.
  3. VCM can sell their shares 90 days after IPO.  Spotify employees are locked up for 180 days zombiefied.

What this means is Spotify will IPO ASAP.  The race to zero first reported by The Wall Street Journal.  Treveri Capital specializes in risk management for executive liquidity of pre-IPO companies.

Information contained herein is for informational purposes only and should not be construed as an offer, solicitation, or recommendation to buy or sell securities, or personalized investment, tax or legal advice. The information has been obtained from sources believed to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice. TreveriCapital LLC is a California registered investment advisor.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

David Bowie Bonds Treveri Capital Intellectual Property Debt Finance

David Bowie, known for his eccentric style of music, fashion, and theatrical performances has passed away January 10, 2016.  He was very influential to several generations from the 70’s to the 80’s and more.  What most people forget is his contribution to the financial industry.  He was a financial innovator with his famous “Bowie Bonds”.

With the help of investment banker David Pullman, David Bowie set the path for securitization of intellectual property (IP) with a $55 million bond in 1997.  Securing this esoteric IP can be seen today in the music, film, and digital publishing or formally known as asset backed securities (ABS).  Also, this led to the financing of Motown, James, Brown, Marvin Gaye, Iron Maiden, Rod Stewart, and more.  Today this billion dollar market is flourishing with liquidity on various electronic communication networks (ECN’s).

Thank You David Bowie for being an innovator!!

David Bowie Ziggy Stardust Finance Innovation Bonds Debt IP

 

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