Acrete Global presents a tightly bounded first-market investment built around a specific capital stack, a defined proof plan, and a deliberate risk posture. The company is an advanced-construction-materials platform for island and coastal markets. Phase 1 is the cleanest underwriting structure: $5.0M of investor cash matched by $5.0M of sponsor in-kind contribution, zero launch debt, and a single-market TCI focus that keeps the underwriting legible and governance tight.
| Parameter | Phase 1 Position | Why It Matters |
|---|---|---|
| Geography | Turks & Caicos Islands only | Keeps the underwriting narrow, visible, and controllable |
| Operating Rule | Proof before premium | Commercial claims must be backed by repeatability, QC, and documentation |
| Prototype Role | Proof/demo assets only — no sale proceeds in base case | Prototypes serve as reference assets, not monetization events |
| Debt Stance | Zero debt at launch and throughout base case | Keeps underwriting clean; eliminates leverage risk in Phase 1 |
| Local Partner | North Caicos Contracting Ltd. — 20+ year TCI operating history | Not a cold start; reduces cold-start risk materially |
Phase 1 is a controllable, one-market proof plan. Investors are underwriting TCI — not a speculative multi-market rollout.
The total capitalization is exactly $10,000,000 — comprising $5.0M of investor cash equity and $5.0M of sponsor in-kind contribution. There is no debt at launch. Every dollar is accounted for below.
Investor Cash — $5,000,000 — Uses
| Use of Investor Cash | Amount | % of $5M | Purpose |
|---|---|---|---|
| Factory CapEx — cash funded | $1,690,000 | 33.8% | Plant commissioning, equipment, initial batch systems |
| Launch working capital + setup | $850,000 | 17.0% | Operating runway, staffing, commercial launch costs |
| Initial materials / reserves | $500,000 | 10.0% | Aggregate stocks, cementitious buffers, critical spares |
| Fees / contingency / close | $250,000 | 5.0% | Legal, entity setup, and close-related costs |
| Opening liquidity floor | $1,710,000 | 34.2% | Protected operating floor after startup uses |
| TOTAL INVESTOR CASH | $5,000,000 | 100% | Fully accounts for all investor cash at close |
Sponsor In-Kind — $5,000,000 — Uses
| Component | Amount | % of $5M | Notes |
|---|---|---|---|
| Machinery / PP&E | $3,000,000 | 60% | Batching plant, graphene module, panel molds contributed at close |
| Graphene inventory | $2,000,000 | 40% | Pre-positioned specialist supply — reduces cold-start risk |
| TOTAL SPONSOR IN-KIND | $5,000,000 | 100% | Contributed at close — no cash outlay from investor |
Prototype homes: 2 × $300K proof/demo assets — no sale proceeds in the base case. Factory revenue is the durable recurring earnings floor.
Returns are calculated on the $5.0M investor cash basis. The continue case assumes the investor stays in through 2035 and receives 20% of distributions post-hurdle. The buyout case provides a clean exit in 2029 at the hurdle MOIC.
| Metric | Position | Notes |
|---|---|---|
| Continue Case MOIC | 7.24× | On $5M investor cash basis through 2035 |
| Continue Case IRR | 71.6% | Annualized 2026–2035 |
| Buyout Case MOIC | 1.75× | At 2029 exit (Year 3) |
| Buyout Case IRR | 42.1% | Annualized at 2029 |
| Hurdle | 1.75× MOIC or 25% IRR | Whichever is reached first |
| Post-Hurdle Split | 20% investor / 80% founder | After preferred hurdle is met |
| Payback Target | Year 3 (2029) | Year 4 is the downside case |
| Risk | Why It Matters | Mitigation | Residual |
|---|---|---|---|
| Prototype Timing | Delays push payback Year 3→4 | Conservative scheduling; two prototypes; gated drawdown | Moderate |
| Revenue Ramp | Operating cash depends on early conversion | TCI-only focus; existing operator base; demand discipline | Moderate |
| QC / Proof System | Quality failure erodes trust irreversibly | Stop-ship authority; test cadence; bounded warranties | Low–Mod |
| CapEx Control | Overruns reduce distributable cash | Reserve line; contingency; milestone-linked drawdown | Low–Mod |
| Hurricane / Supply | Island ops require built-in continuity | Inventory buffers; critical-spares matrix; playbooks | Moderate |
Phase 1 is a controllable, one-market proof plan with visible use of proceeds, a credible operating floor, identifiable monetization timing, and governance built to institutional standards from day one.