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Private Equity

Alternatives to traditional investments, complicated transactions, and simple stock purchases make sense for those with a sense of cautious adventure and desire for high returns. Finding capital; forming partnerships; and sometimes managing the deal is what we do. Sydney Capital accepts partners on a very limited basis via a network of intimate limited partnerships with friends and associates - there are only several degrees of separation.


Additionally, we can mirror the conservative preservation of wealth methodology (government securities). For example:

   1.       100% principal return (minimum)

   2.       1-year minimum holding
           
   3.
       Fixed rate of return

   4.
       Bond-like low level risk (save catastrophic event)


There are many strong, responsible, reliable, companies without operating capital to get to the next level. These companies pay to “show” funds as collateral in acquiring construction bonding. Construction bonds default nationwide at less than .05%. Using standard recognized bond rating from S&P and Moody’s, a bond’s rating based on default probability in the first year looks like this:

                                  S&P    Moody’s

AAA/Aaa                     0.0         0.0

AA/Aa                         0.0         0.0      

A/A                              0.1        0.0

BBB/Baa                     0.2         0.2

BB/Ba                         1.1         1.8      

CCC                          16.4          na

Investment Grade        0.1         0.1

Speculative Grade      3.8         4.2

…placing us at the A/A to BBB range. Returns are negotiable.