The "Berkshire Hathaway" of Fintech
The Fintex Group Closed 20% Of Its Round in the First 48 Hours!
Don't miss out!
The Fintex Group is a holding company focused on cash-flowing businesses that will define the future of financial technology. We build, buy, and partner with major global institutions to compound value over the long term.
Highlights
- The Fintex Group LLC is known as "The Berkshire Hathaway of Fintech." It builds and compounds cash flows across large, fast-growing areas of Fintech.
- The company has raised $7 million in capital to date.
- 3 focus areas include Future of Work (1.57 billion gig workers need digital tools), Future of Bank Infrastructure ($4.7 trillion revenue opportunity by 2031), and Future of Credit ($47 trillion market by 2031).
- The team has a proven track record, including building the IP for Apple Pay from its insights at Visa Inc.
- In each focus area, the company has contracted with an institutional partner (2 public companies and a multi-billion dollar family office) to accelerate business building and reduce overhead. Contract with Global Payments Inc. is forecast to generate over $175 million in the next five years.
- Family office partner is providing a $750 million credit facility to execute a 10-year Credit strategy.
- The business model focuses on cash flow, driving returns for investors from dividends and IPOs.
- The company provides investors an exit via IPO in approximately five years.
Our key areas of focus are:
- The Future of Work: Partnering with the largest financial services companies in the world to support over 1.57 billion "gig" workers, 46% of the global workforce, and massively underserved by the financial services ecosystem.
- The Future of Credit: Investing in the infrastructure for high-yield credit providers and marketplaces.
- The Future of Financial Services Infrastructure: The global financial services industry is expected to grow at a CAGR of 9.7% and reach $58.69T by 2031 (GS).
What is Fintex?
Insight
PayPal grew 200X ($300B) after VCs sold to eBay
Our Response: Fintex
After decades of helping leading investors and corporates create outsized outcomes, we started a firm that invests and operates but holds forever so that we retain the upside.
Reason to Believe
We built Apple Pay from insights at Visa. We are executing three new strategies in the largest fintech sectors, each driving > $150M net profit to Fintex in the next ten years.
Unparalleled Experience
What do we do?
Proven Experience. Unparalleled Access.
- Approach: We marry the financial engineering of typically profitable businesses (we buy, build, and partner) with top operational talent to yield a "group" of synergistic, cash-flowing firms under one big tent.
- Goal: Long-term value creation, compounded over decades.
- How do we do it? We partner with institutions to create unfair advantages in product and distribution. We keep the upside, compounding the value.
- Business Model: Returns come from dividends & IPOs.
- Exit: We plan to IPO our TopCo in 5 years.
How Do We Do It?
Our Execution
We combine investing with operational best practices.
Our Advantage: We are Experts at "Build, Buy, Partner"
We partner with market-leading institutions, who give us capital, products, and distribution... but we keep the upside.
Outcome
Three cash-flow rich strategies; after ten years, the cost of capital will go to zero; we can compound the strategy for decades.
Business Model & Exit
Returns come from dividends & IPOs; we assure investors liquidity via IPO of a small piece of our TopCo in +/- 5 years.
How We Make Money
Strategy 1: Gig workers need new digital tools
Strategy 2: Fintex will capture a considerable share of bank infrastructure
Strategy 3: Tech unlocks new asset classes in credit
Strategic Partner
Emmar has approved a 10-year $750M equity/credit facility for Buy Now-Pay Later for a low interest rate and no equity.
Business Model
We earn >$900M over ten years; we have a $300M surplus principal to continue strategy at a higher IRR in the future.
Execution: Build + Buy + Partner
The world-class team applies all our skills across five target firms:
• Build: Invested with Santander in the new marketplace; formed SplitPay with TicketSocket ($17B volume) for event BNPL
• Buy: We will acquire two firms (with $230M and $9M revenue)
• Partner: With Yapstone ($4.4B in volume) for travel BNPL
Angel Investment Terms, Return Model & Risks
- Paid-in Capital to Date: $7M in debt and equity
- Angel Investment Security: SAFE notes convert with a 20% discount into Series A; angel round minimum $5M, maximum $10M
- Series A: Preferred equity in 3 phases:
- Preferred Return
- True-Up to guarantee 3.5X after five years
- Dividends in perpetuity after that
- Target IRR (over ten years): 29%; Series A IRR: 26%
- Use of Proceeds: Strengthen the balance sheet and accelerate hiring.
NOTE: Use of capital is discretionary (e.g., we may buy a team, not hire).
The Series A security has been designed in partnership with an institutional investment firm but is subject to modification. The return model for our Series A is presented in the investor presentation made available with this Term Sheet. As presently designed, the security has three features:
- From dollar one of Issuer cash flow (likely late 2025 or early 2026): Preferred return of principal with 8% coupon, preferred to any distribution to Issuer partnership and management
- At the 5-year anniversary of the Series A: 3.5X cash on cash return, on top of principal plus interest
- After the 5-year anniversary: Annual distributions in perpetuity
Liquidity option: The Issuer is scheduled to make an initial public offering of its holding company about five years after the closing of the Series A financing. Series A holders may sell their shares or continue to hold and collect distributions at that time.
