We invest exclusively in already high-income-producing assets with significant upside value potential. Green assets have a high impact on environmental protection, contribute to the preservation of the ecosystem, and utilize true renewable energy sources. We aim at green assets that utilize nature-inspired zero-emission technologies that function like self-sustaining ecosystems with significant beneficial impacts on the economies of the world and sustainably foresee basic human needs.
Our investment strategy is exclusively focused on first-class assets and enterprises with already substantial income-producing assets, with accelerating value and still significant upside value potential. Most of the targeted assets are about to make a breakthrough in global markets as we establish partnerships with multinationals and arrange for subsidies, grants, and tax discounts. In most occasions, these assets are already targets for acquisition or IPOs.
We only acquire assets situated in countries with highly developed environmental standards, innovative regulatory frameworks, sophisticated legal systems, and strong contract enforcement standards. The investments are secured by high-quality assets worth several times the amount of the investor’s bond investment. Our strategy allows for reinvestment of proceeds, compounding profits multiple times throughout the investment period.
Lux Eco Securities sources candidate assets at leading global incubators, invention centers, and patent bureaus. We select only post-start-up stage income-producing assets, with accelerating value growth and still significant upside value potential that are about to make a breakthrough in global markets.
It is evident that we do not select assets in the research and development stage. The synergetic relationship with these incubators is of significant importance. The incubator's strength is the selection and development of new assets and post-start-up funding hereof while our strength is the commercial roll-out hereof once these assets are ready to go to market.
When targeting green innovative assets, Lux Eco Securities commissions world-leading scientific organizations like the Energy Research Center of the Netherlands, the Organization of Applied Scientific Research, the Dutch National Hydrogen Platform, or leading universities to undertake thorough due diligence, testing, and if so required certification.
This organization provides us also with expert opinions about the economic, technical, and commercial viability of the assets as well as other criteria including but not limited to market acceptance, regulatory and political roadblocks, product exclusivity, organizational readiness, etc. We also engage with special reputable patent bureaus like Sisvel Spa and patent law firms to assess the strength of existing patents, file new or additional patent applications or assess the possible contestability of these patents.
Upon the successful outcome of the due diligence, Lux Eco Securities instantly engages with leading multinationals to explore potential synergies for development, manufacturing, distribution, and sales. It is evident that such multinationals bring exceptional experience, know-how, and critical resources to the table that will substantially reduce the time-to-market.
When confirmed we proceed with establishing strategic partnerships or industry or geographic alliances, securing licensing agreements to ensure a fast-track commercialization and roll-out in global markets. Often these multinationals desire to obtain an equity stake in the business. Our credo is here "Better have a fair share in the ocean than full ownership of a still dry lake".
Strategic partnerships and alliances with multinationals often significantly reduce the need for capital to build up a global presence. As these multinationals already have the experience, the capital, a state-of-the-art industrial infrastructure, and an existing global distribution and sales network, it is relatively easy and cheap for them to rapidly integrate the new assets into the existing global business operations.
It is evident that besides the significant cost savings the risks of trial and error, are normally involved when enterprises pursue their own, self-managed growth strategy.
It is common practice for Start-Ups and SMEs to solely rely on investors' s funding, even when they are ready to go to market. However, most enterprises appear to be unprepared or unable to make the transition from research and development to sales and distribution and make the common mistake of building up these capabilities from scratch.
The consequence is that valuable time and resources are wasted, the desired breakthrough fails, and moreover the loss of critical important revenues. In our experience, the transition requires often new leadership. Our support focuses on building global strategic partnerships to ensure the asset starts to produce cash flows as fast as possible.
As Start-Ups and SME's are largely founded and led by specialist inventors, it is very common that deadlines for market launches continuously are postponed. Such delays occur when patents haven't been filed yet when the prototype has to be prepared for mass-scale manufacturing, or when special machinery has to be developed, or simply because product certifications in certain countries take relatively a long time.
Another common reason is that inventors often "won't let go" and strive for further ongoing perfection. In our approach, we strictly segregate the ready-to-market applications from those that require further research and development to ensure these applications are launched as soon as possible safeguarding an as early return on investment for investors as possible. We strive to ultimately fund the add-on research and development from the cash flows generated by the first-to-market applications.
The key to the success of making a breakthrough in the global marketplace is the acceleration of profitable growth and achieving economies of scale. As the business volumes increase numerous opportunities arise to achieve higher levels of efficiency.
Besides fast-tracking the sales and distribution partnerships with multinationals, geographical or global, we actively explore the opportunities for outsourcing production, distribution, and "white-labeling". Such strategies have proven to be of significant importance for sustainable profitable growth.
As investors, we do not strive to retain long-term ownership but seek a high-value exit on our investment. Already from the moment we conduct due diligence on the targeted assets, we prepare for a high-value exit. It is evident that the multinationals with whom we have established strategic partnerships are the primary candidates to acquire the assets.
Throughout the investment period, we also engage with leading private equity and venture capital firms and other institutional investors. Alternatively, we mobilize our task force to prepare for a full or staged public offering. The objective is not only to secure the highest value exit but to ensure the continuity and further global roll-out of the asset in accordance with our mission.
Download here an overview of our Portfolio.
Download here the Fact Sheets of the assets we held in our portfolio.
The preferred asset classes we invest in:
1. Non-nuclear Thorium reactors
2. High-quality Protein Production
3. Hydro and Aquaponics4.
4. Potable water Production
Lux Eco Securities is a true financial innovator. Besides our unique investment and risk management strategies, our innovation efforts have caused a major shift in the approach to funding of lux eco securities.
