JAPONICA
PARTNERS FILES U.S. PATENT ON "TRIPLE OPTION"
HURDLE
--New
global best practice integral to unique business model--
Dateline:
Providence, Rhode Island USA, November 10, 2004
Japonica
Partners, the proactive management and investment firm,
filed a U.S. patent application for its "Triple Option"
IRR Hurdle Rate.
The
very high "Triple Option" IRR Hurdle Rate is a
new global best practice and integral to Japonica’s
unique business model.
The
"Triple Option" IRR Hurdle Rate is consistent
with Japonica’s business model, which seeks to PERFECTLY
ALIGN Japonica’s team members with its partners. Japonica’s
convictions in its unique business model are reinforced
by both Japonica’s pre-control and control investment
successes.
The
"Triple Option" IRR Hurdle Rate complements the
simplicity of Japonica’s business model and highlights
the benefits of continuous improvement. Japonica does not
use industry standard fund structures. Instead, Japonica
forms partnerships that seek to perfectly align partner
interests and demand an extraordinary level of superior
performance.
The
"Triple Option" IRR Hurdle Rate accommodates the
performance benchmarks of major asset classes by allowing
the selection of one or more hurdle rate alternatives. It
provides three alternative hurdle rates, each set at a level
above performance benchmark metrics. Its Fixed Hurdle Rate
is 15%. Its U.S. Treasury-based Hurdle Rate is 1,000 basis
points above the 3-month Treasury Bill. And, its Stock Market-based
Hurdle Rate is 500 basis points above either the S&P
500 or 400 Index.
All
calculations are cash-based. And profit sharing only commences
upon 100% cash return on investment and selected IRR Hurdle
Rate. Japonica’s business model contains no annual
management fee or advisory fees for the general partner.
Japonica team members who assume positions with a control
investment forgo industry standard incentive compensation.
Under
the Fixed Hurdle Rate alternative, over a 40% gross IRR
must be achieved just to earn break-even compensation with
industry standard terms.
About
Japonica Partners
Japonica
Partners is an entrepreneurial co-investment firm that makes
concentrated investments in underperforming global large
caps, providing entrepreneurial returns for accomplished
money managers who succeed with top quartile
performance.
For
more information contact:
Chet Hollister
Principal
Japonica Partners
401.861.6160
chollister@japonica.com
|
