Have your cake and eat it too via venture debt: Jason Edwards

In today’s ROCast, Murdoch speaks with Jason Edwards, CEO of January Capital, about venture debt and their unique database Alternatives.pe, which is used by 80% of Southeast Asia VC firms like Sequoia, Tiger Global, and more.

If you’re familiar with private lending, like many Australians, and you have often wondered how to both generate income from lending to, say, $10 to $15 million high-growth B2B SaaS companies and “ALSO” participate in the potential upside, then I think you’re really going to enjoy Jason breaking down venture debt and their fund's strategy.

If you’re not familiar with venture debt, it’s a form of lending to startups, senior secured, earning income from day one, backed by institutional investors with the unique ability to participate in a company’s growth success via warrants.

January Capital has a capital call structure and, for Australian investors, the feeder fund has a 2-year lock-up with redemption's quarterly after this period ends. Regarding returns, the fund will be paying a 12% current yield, and then when the warrants kick in, they expect that investors will be getting closer to something like 17 to 19% total return, p.a. average, net of fees.

What’s a warrant? What’s venture debt, why Singapore, and how does it all work? Well, best join us and let Jason add color to this canvas.

Before we get into the conversation, please remember this podcast is made for entertainment purposes only and not to be construed as any form of advice. I encourage you to listen to the disclaimer at the end of this ROCast and to keep your feedback coming.

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