All private securities listed through online investment platforms and Exempt Market Dealers (EMDs) like SVX are likely to carry more risk than those available on the public markets. Our goal it to make you aware of those risks before making an investment. For further details on the risks in the private markets, refer to the SVX Risks section. Some of the risks are identified below with additional risks included in their Offering Memorandum:
This investment is illiquid given the stage of the venture and given that the financing arrangements for the invested capital are going out in the form of loans. Investors could not expect to access their principal before the end of the proposed term of investment (3-5 years).
Underlying asset risk
This investment relies on the performance of a set of underlying assets: loans to clean energy projects for energy efficiency or new/existing projects. There is a risk that these projects may fail. CoPower has targeted mid-sized projects that have a similar risk profile to larger clean energy projects. Moreover, these assets have an underlying value, they are secured loans, and the project loan is the most senior debt obligation in the event of a default.
Some, although not all, of the projects are subject to the provisions of the Ontario Feed in Tariff (FIT) program.
CoPower (GP) is an early stage venture with a short operating history. There is a risk that they will not be able to achieve their business objectives, including their revenue and investment targets. The costs of operating an investment platform and associated regulatory requirements are significant. However, CoPower has been able to acquire $12 million in assets under management, and they have placed a significant amount of capital into projects.
Moderate turnkey installation risk. Return on loan investment is still dependent on the completion of the overall project. CoPower only takes on retrofitting installation that are usually very short term (within 1 week for completion) that should not place excess strain on project construction.
This type of investment has substantial risk. Investors should make an investment only if you are prepared not to receive any return on your investment and to lose your investment in its entirety.