Our Business Model

The Business Model

1. Sharia-Compliant Private Equity Investments

Deal Sourcing: Experienced fund managers with expertise in Sharia-compliant finance will actively source private equity investment opportunities that adhere to Islamic principles. These deals may involve equity investments in private companies, venture capital, or private equity funds that comply with Sharia guidelines. Investment Selection: The fund managers will rigorously assess and select private equity deals that align with the Smart Waqf's investment criteria, including ethical considerations and risk-return profiles. Investor Types - High Net Worth Individuals: Accredited investors and HNWI participants can allocate a portion of their investments to the private equity component, seeking higher returns through equity ownership in businesses. Profit Distribution: Profits generated from successful private equity investments will be distributed among investors in accordance with Sharia-compliant profit-sharing agreements (Mudarabah).
2. Philanthropic Funding Component

Private Equity Dividends: A portion of the profits earned from the successful exit of private equity investments can be allocated to the philanthropic fund. This ensures that the gains from these investments contribute to the philanthropic causes.
3. Operational Considerations:

Exit Strategy: Private equity investments typically have a defined exit strategy, such as selling the equity stake in a company or taking it public. The proceeds from such exits will be distributed in a Sharia-compliant manner. Risk Management: Managing the risks associated with private equity investments will be a crucial responsibility of the fund managers. Due diligence and risk mitigation strategies will be employed to safeguard the investments. Regulatory Compliance: All private equity deals and investments will adhere to relevant financial regulations and Sharia guidelines, with oversight from the Sharia supervisory board. Incorporating private equity deals into the Smart Waqf's investment component can offer additional diversification and potential for higher returns while remaining Sharia-compliant. By including Sharia-compliant private equity investments, the Smart Waqf can offer investors the opportunity to participate in the growth potential of private companies while maintaining ethical and Sharia-compliant principles. The returns generated from these investments can contribute to both the financial growth of the fund and its philanthropic mission.

Investment Thesis

Phase 1

Profit sharing in high yield commodities, which will help to aggressively grow investments. This will be done through the SMART ecosystem model.

The 2 ways...

1. Smart Loan

We invite you to participate in our Smart Loan programme, tailored for making a positive impact. Here are the steps to get involved:

1. Loan Customisation:

Choose your loan amount (minimum £100,000).

Select a lending period: 6 - 12 months.

Determine the return rate (0% - 10%) — lower rates provide the greatest benefit to the fund.

2. Opt for a one-time permanent donation!

2. Smart Impact Trader

Are you a high-quality business or physical commodity trader? Here’s what it takes to qualify as a trader:

Criteria:

1. Profitability: Must demonstrate the ability to generate healthy margins of over 30% annually or 5% monthly - higher margins are even more desirable.

2. Track Record: A minimum of two years of established history.

3. Financial Security: Assets must exceed value of funds being lent.

4. Efficient Trading Cycles: Ability to release funds and profits annually/bi-annually.

Join us in making a meaningful impact through responsible lending and strategic trade partnerships. Together, we can create lasting positive change for our community and beyond.

This allocation mix still incorporates risk management but allows for a somewhat more balanced approach with increased exposure to growth-oriented asset classes like equities and private equity. However, it's important to carefully consider the specific risk tolerance and investment objectives of the Smart Waqf and to consult with experienced financial professionals and Sharia advisors to ensure alignment with Islamic finance principles. Additionally, regular portfolio monitoring and adjustments may be necessary to maintain the desired risk-return profile.

Phase 2 - Diversification as follows:

01 Fixed Income (Sukuk and Bonds): 15%

This allocation provides stability and some income generation while being slightly less conservative.

02 Equities (Publicly Traded Stocks): 15%

Increasing the allocation to equities can offer more potential for capital appreciation and growth.

03 Real Estate: 15%

Maintaining the allocation to real estate, which can provide income and potential long-term growth.

04 Private Equity: 45%

We propose a slight increase in the allocation to private equity to enhance potential returns, while acknowledging the acceptance of additional risk. This will be accompanied by stringent due diligence, focusing exclusively on companies with positive EBITDA. Additionally, we will ensure 50% investment security through personal or other corporate guarantees.

05 Cash and Liquidity: 10%

Keeping a portion in cash or highly liquid assets for flexibility and immediate needs. Continue allocating a portion of the returns to the philanthropic fund, adjusting it based on the fund's financial performance and philanthropic priorities.