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Thai Teak Fund pre-launch offer for early subscribers


Thai Teak Fund

The Thai Teak Fund is a simple, deliverable, secure and fully managed alternative investment, based on the acquisition, maintenance and eventual sale of over 200,000 teak trees in Thailand. The Fund is a new eight year closed-end, single asset fund offering a high performance, environmentally friendly and ethically sound investment that is uncorrelated with other assets.

The Proposition l  Fund Raise $60m

 Purchase of Trees: $45m l  Maintenance & Management: $15m l

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 Projected sale of trees: $145m

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 Target Investor Return: 13%+IRR pa

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 Minimum Investment: $1m

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Multi-peril Insurance: Lloyds of London

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 Yield Guarantee Underwritten by: 85%

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 Managed by expert forestry professionals

The Opportunity Teak has been recognised for centuries

as the material of choice for luxury items, its colour and fine grain makes it ideal timber for flooring, garden furniture and yacht decking. In tropical climates, it is the preferred material for high-quality construction components such as windows and doors due to its strength, resilience and durability. Historically, the demand for forestry products, and in particular teak, which is often deemed the ‘gold of timber’, has risen hand-in-hand with the world’s growing population and there is nothing to indicate that this trend will be broken. In fact, growth in Asia is triggering increased building activity, which in turn is generating increased demand for timber.

In recent years, the teak industry has undergone a number of significant changes. Those countries such as Myanmar, that traditionally supplied the majority of the world’s teak supply, have been subjected to increased regulation due to over logging. Subsequently, the supply of quality, ethically sourced teak has declined in recent years, with a shortage of supply over demand expected to last until at least 2030. Plantation teak as grown by the Thai Teak Fund is ideally placed to fulfil this shortage. In addition, Teak remains particularly popular in the emerging economies of China and India and the demand from these countries is expected to increase with population growth.

Thai Teak’s attention to detail in growing teak to the highest standards brings environmentally friendly and ethically sound advantages, alongside socio-economic benefits to the communities in which it is grown.


Simple Objectives – Fund buys semi-mature teak trees – Managed to produce best quality logs – Logs are harvested over 6-8 years – Focus on maximum sale price

Secure

Fund Terms

Summary

Investment Manager: Thai Teak Fund Structure: Cayman Islands 8 Year Closed-End Fund Asset: Semi-Mature Teak Trees Aged 10-12 Years Location:

Petchabun, Thailand

– Fund takes lease over entire plantation – Vendor underwrites yield – Land titles and licenses checked – Independent Forestry Evaluation – Thai Teak manager on-site 24/7

Security: Leasehold

Target Return:

13%+IRR pa

Well Managed

Yield Guarantee:

Average 0.85 m3per tree

Lock In:

8 years

– Vendor is world renowned teak expert – Expert maintenance for optimum results – Regular site inspections and careful control of forestry activities – All parties interests aligned

Management Fee: 2%

Deliverable Results – Trees are already 10 –12 years old – Established and performing on target – Expert Management Team – Yield Guarantee – Established Teak Market

Insurance:

Underwritten by Lloyds

Fund Raise:

US$60 million

Minimum Investment: US$ 1 million

Hurdle Rate: 8%

The Thai Teak Fund is an elegantly simple, secure and deliverable investment which offers a high return. The Fund embraces Corporate social responsibility with environmentally friendly and ethically sound credentials. It provides the opportunity to invest in a growing global market where demand is outstripping supply and is set to continue to do so. It offers diversification via an asset that is uncorrelated to stocks and commodities. Risk is mitigated via a yield guarantee and insurance.

Performance Bonus: 20% above 8% hurdle rate Administrator:

Apex Singapore

Legal: Walkers Singapore Bank: The Northern Trust Bank

Special terms for seed investors – Reduction of management fee from 2% to 1% from year 3 onwards – 1% rebate from Performance Bonus for each $1m invested – These incentives are worth 14% of subscription


This fact sheet does not constitute an offer to sell, or a solicitation of an offer to buy, participating shares in the Thai Teak Fund, in any jurisdiction, or to any person to whom it is unlawful to make such an offer or sale. An investment in the Thai Teak fund is speculative and is not intended as a complete investment programme.

Thai Teak Fund For Further Information contact: Paul Rockwood, Thai Teak Fund Ltd. E: paul@thaiteakfund.com T: +44(0)7798 851 578

Thai Teak Fund pre-launch factsheet  
Thai Teak Fund pre-launch factsheet  
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