Loyal is an alternative venture fund. It’s evergreen, allowing LPs to trade in or out quarterly; highly diversified to reduce risk with >100 companies in >29 countries; it drives returns with a unique staged approach. While designed for returns, it drives significant impact in gender equity (35% women CEOs) and financial inclusion, also funding entrepreneurs >80% of whom drive impact themselves.
Alternative Venture Capital
Loyal uses a multi-staged investment approach leading with a small investment very early, reserving the bulk of their capital to fund the top performing portfolio companies, an ability to act quickly, knowing when a company is ready - often before the deal comes to the market. To date, Loyal has a 100% acceptance rate on follow-on offers to their best companies.
Loyal’s investment objective is to deliver steady 15-25% annual returns over a multi-year period (19% in 2019). The fund’s diversification dilutes the effects of any one winner and given the 100+ portfolio size it is expected to make cash distributions on an annual basis (1.4% in 2019), and ensure a steady stream of modest winners, which should put a floor on the return in the 10% area.
Loyal believes that investing in stages starting very early builds trust and inside knowledge advantage. Loyal is designed to react rapidly to the world as is, and not as promised, invest on proven results and unbiased process-driven selection. It’s in the Fund’s DNA to build loyal ties not only with the entrepreneurs but with the LPs by ensuring success in the long term around an evergreen fund.
Loyal is the fund designed that the two partners would have wished for as entrepreneurs, angel investors and advisors. Loyal shares carry with advisors. LP terms and fees are ones that we would say 'yes' to as angels. Loyal’s investors can trade out of, or into, no capital calls, buy or sell at a market price set each quarter. We are loyal to founders by reinvesting as soon as they are ready.
Loyal was founded by long-time business partners Kamal Hassan and Michael Kosic, both were angel investors, founders and mentors, who share a passion for a new way of venture investing. Loyal team grew to include 6 Venture Partners, External Controller, Operations and Investor Relations support. Loyal works with a network of over 250 Advisors globally to support the breadth of its portfolio.