Where do 10x deal returns REALLY come from?

“I’m on a quest to add $100m to my personal net worth in the next three years… and for the first time ever, you’ll have the chance to invest alongside me”

Want to find out where I’m investing my personal net worth right now? I’ll tell you this Thursday, Sept 28th @ 10am PST. Click here to RSVP.

With 50,000 VC backed companies projected to go down in flames this year…

People have been asking me “… where are the good clean deals that can generate 5-10x returns on my money with basically no risk.”

(Oren Laughing) … Let me know when you find one of those, because I’m also super interested in a no-risk 10 bagger.

But after participating in more than 250 deals, here’s the truth about who consistently makes the biggest – and usually lowest risk – returns on these deals…

Banker? Founder? Attorney?

It’s the Banker.

Sure, the investors don’t do too bad for themselves…

But only the Banker can structure deals that provide all four elements needed for my “perfect” investment opportunity .

  • Downside Protection: I would have little to no chance of losing money

  • Cash Flow: I would receive regular income from the asset

  • Growth: My investment would grow in value at above-market rates

  • Liquidity: At any point in time, I could exit my position at fair market value

Normally, you have to make tradeoffs between these four factors.

But when you’re the Banker, because you control the money, you can structure deals that provide you with a legal and legitimate advantage over the other people in the deal. In fact, as the Banker, you’re expected to do so.

And any Banker who knows how to originate, structure, and execute on these types of deals also knows how valuable what they do is.

It’s literally their entire job to look for ways to maximize their upside while shifting as much of the risk as possible onto other parties in the deal.

Bankers work hard to find these deals.

For investors, here’s the bad news: If you seriously think the banker is going to give you their “easy button” deals that consistently make them these types of big, fast gains…

… here’s a quick course correction for you: no.

The Banker’s Best Deals” is not something you can get into. It’s just not.

But here’s the good news: If you know how the banker puts together deals – and you just steal their playbook and do it yourself – you can capture all that upside for yourself.

All you have to do is find a well-run operating company that you can attach revenue, reporting, and capital-raising infrastructure to…

And then, you have to help them move up a “weight class” so they can go after a 10x opportunity.

Don’t get me wrong. If you’re targeting a 5-10x return in <5 years, there is real work that has to be done with this playbook, and it cannot get outsourced to some intern or associate.

(This is why Venture Capital firms can’t do juicy PE or banking deals, they’re staffed with Jr. Associates.)

But if you know all the cheat codes that private equity firms use to consistently generate these types of returns… all you gotta do is step in to drive revenue, raise money and implement financial controls aka “do the work.”

That’s why if I’m going to be putting my own money at risk, I’m looking for one thing, and one thing only…

An opportunity to structure a deal the way a banker would.

I’m looking to be the Banker.

Because if I can string together 5-6 back to back deals as the banker, I’ll be right on track to hit my +100m net worth goal in the next three years.

But as a quick preview for what you’re going to hear on this presentation, let’s talk about…

My Money Making “Cheat Code”

Everyone thinks that the people who make lots of money are the charismatic founders who they see on the covers of magazines, on TV shows like Shark Tank, and hear about in pop culture like Mark Cuban.

But in the real world of finance, outside of Silicon Valley and TV …. no one cares about founders.

Why?

Because most founders – while they may be good small business owners – simply don’t have the executive level skill set required to build a $1bn business.

And this is why people in “real” finance don’t give wunderkinds too much money… because bad things happen when there are no adults with spreadsheets in the room

You know all the names: SBF. Adam Neumann. Elizabeth Holmes.

Even Uber was a fraternity car wash gone wild under Travis.

Real Money wants nothing to do with financing vanity projects run by egotistical founders.

And I should know. I’m raising $200m+ of debt and equity financing for a factory I’m building in 2024, right here in America.

I’ve been working on putting this deal together for three years now.

And you want to know who I’m giving $200m in capital to manage? Not some 25-year-old Stanford grad whose never run a lemonade stand before.

So who did I hire to be CEO of this high-tech precision manufacturing facility that I’m using to target a $5 billion market?

A 42 year old 20-year industry executive – and the 5-person team he’s bringing with him – who has a proven track record of results doing the thing I’m doing: precision manufacturing.

In other words, he has already built and run the manufacturing facility I’m raising capital for right now, and grew the business from $0m to $100m in < 5 years…

And he is generating approx.$2m a month in profit for the shareholders.

Needless to say, I’m pretty excited about the idea of owning a business that pays me and my investors $2m a month in dividends.

But even with that great track record, before I hired the guy, I flew to Europe three separate times, and locked myself in a room with him for 2 days straight each time.

If I was going to put $1m of my own money into this deal to get things started… 

I wanted to know the secret behind what makes these factories such incredible cash flow monsters, and how he was able to grow the asset value from $0 to $100m so quickly.

Here’s what he told me…

“You don’t just build a factory, you build a technology company ON TOP of a factory.”

Question: Why is this unique angle so important?

Answer: this deal doesn’t fit “cleanly” into any particular ecosystem for any “normal” type of financing.

The technology is incredible; large format precision manufacturing technology …

But the deal is not a good fit for Silicon Valley, San Francisco, Wall Street or Boston finance centers.

It’s got a real estate element – after all, it’s a factory – but the added technology and IP that comes with the deal means it’s not a “standard” deal.

That’s why these deals wind up stranded, outside the walled gardens of the name brand capital markets ecosystems.

It’s kinda like having two plugs that just don’t match.

These types of deals are my absolute favorite for one simple reason…

The valuation of the company can change dramatically based on the story you tell; which allows you to move the deal into a market where the “investor plugs” do connect.

And I’d say there are few people in the world better than me when it comes to telling a great story.

But no matter how much of a silver-tongued pitch devil I am, I still can’t raise “real money” from “real bankers” unless there are certain things in place.

And if you want to know my secret for consistently putting those “things” in place, and making returns in private markets, it’s this: understanding how to find a good business – with a good management team – that has a real 10x growth opportunity ahead of them…

Then put a reasonable amount of capital into the company, sometimes less than $5m, to optimize the company and get the connector plugs to fit into the bigger capital market channels…

And THEN you can take it to market and either sell it or scale it.

This is what billionaires mean when they talk about “banking.”

Want to know more about how I have structured my current deal; and how these banking structures can work in almost any deal?

-Oren

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