Lux Healtcare Investments invests in principle only in newly to built assets or existing assets that are already producing profitable income. The income is largely originated from long term contracts with reputable global institutions and corporations with an indisputable credit-rating. The payments are often secured by financial securities like state guarantees, credit-insurance, state export guaranties, off-take contracts, cash-backed bank guaranties, letters of credit, promissory notes, etc.. These securities have a fixed value, are rapidly turned into liquid cash and in case of ememrgency factored or discounted. The credit risk exists of course theoretically, but is fully recoverable.
Lux Healtcare Investments invests only in assets that utilize proven practises and technologies, certified, accepted and deployed by industry leaders, under fully executed preferred supplier agreements. The focus is on relatively low CAPEX and OPEX assets, with long economic and technical life time and with short pay-back terms. In general these assets can be rapidly and easily re-financed by bank loans, sell and lease back to ensure short investment periods and high gear cash flows in the portfolio. All assets will be properly insured by insurance providers with minimum A-rating if possible and applicable.
As the currency of the bond principal and the asset in which we invest are the same the bondholders are not exposed to the volatile curency exchange rates and unexpected currency exchange losses. We herewith avoid also the exorbitant cost for hedging and “stop loss” strategies.
