Loans to Lynx are fixed based on a chosen term. Investors receive 100% of the principal invested on the maturity date if they choose not to renew. The annual interest payable on the loan is paid in equal monthly payments.
Unlike other fixed-income offerings with low annual returns, Lynx is able to deploy the capital raised to acquire and operate businesses. This rewards investors with attractive risk-adjusted returns, in addition to providing consistent monthly cash flow to investors.
Most corporate bonds provide attractive yields to investors but require that they “place all of their eggs in one basket”. Investing with Lynx allows investors to achieve competitive returns while benefiting from having their loans backed by a diversified portfolio of private companies, also being less correlated with public markets.
Lynx does not invest in start-up or “turnaround” companies. Instead Lynx buys and maintains companies with long track records and stable cash flow, which is a key aspect of Lynx’ predictable and consistent performance.