Success Factors

Lux Media Investments strives to be a state-of-he-art investment platform for sophisticated, tax-efficient and attractive capital market products which are fully aligned with our investors' requirements and preferences. 
True Securitization
Lux Media Investments has structured its bonds in such way that the principal capital is protected. The aggregate collateral value of the underlying assets is no less than 100% of the equivalent value of the bond principal. The assets remain throughout the whole investment period in a dedicated legal structure (a compartment), separate from any other assets and liabilities and remain exclusively reserved for the bondholders as senior creditors. The assets remain during the full term under control of an independent securities trustee to ensure no creditors other than the bondholders can claim the assets.
High Fixed Income
Lux Media Investments provides substantially higher coupon rates than other investment grade instruments, in particular over longer tenures. We do not make a secret of our income strategy. Our investment strategy targets convertible loans to income producing assets with fast accellerating asset value and significant upside value potential. As we timely dispose of these assets we are able to reinvest the principal capital and capital gains in new assets several times within the bond investment period.
Profit Sharing
Lux Media Investments will determine at the scheduled maturity date what the remaining net asset value of the assets is after the assets have been fully disposed and all obligations to the bondholders have been satisfied, including reimbursement of the principal and payment of all interest obligations. Bondholders will receive a kicker of between 10% and 50% of the remaining net asset value, pari passu and pro rata among them.
Risk Mitigation

Responsibly investing capital takes more than just developing predictive algorithms and applying specualative high frequency trades. Even in-depth market reserach, industry trend anaysis and company due diligence are often insufficient to find the "goose with the golden egg". Our investment selection is therefre largely based on the expert opinion of the media champions that have "boots on the ground". Our investment committee consists of leaders with an impeccable track-record of success in building, launching and growing media enterprises with emerging technologies. Likewise we only invest in enterprises that are founded and managed by practise leaders with same experience. 

Our focus is on convertible loans to post-start-up enterprises developing media technologies that are transitional but have the undisputed capability to become global standards. In order to ensure the technologies make the desired breakthrough we establish alliances with leading development organizations and global media market leaders that will undertake commercialization and roll-out on a global scale. 

Another important investment strategy is to select assets with substantial upside value potential and ability to rapidly accellerate revenue streams and capital gains. Most of these assets are about to make a major breakthrough in global markets or may become targets for acquisition or scheduled for IPO's. Timely disposal of the assets and exit from the enterprise are considered critical.

A well-balanced diversification of investments across industry sectors (i.e. music, sports, news) and applications, (content production, data analytics, distribution) and technologies (virtual reality, holographics, screenless display) as well as common credit risk policies will avoid potential concentration risk in the portfolio. Lux Media Investment will seek additional collateral to secure the bond principal, including but not limited to patents, receivables, shareholder equity contributions, tax credits.

As the currency of the bond principal and the assets 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.

​We acquire only assets situated in countries with highly developed environmental standards, innovative regulatory framework, sophistcated legal systems and strong contract enforcement standards. Investments are secured by high quality assets with a value that is higher than the invested bond principal.
Optimal Liquidity
Lux Media Investments considers liquidity risk management of significant importance. We plan ahead for optimal liquidity positions and adjust our cash positions and cash flows throughout the investment period to ensure we can meet coupon payments and pay for the cost of servicing the assets we have in portfolio. We make provisions to avoid liquidity shortage. We plan for timely asset disposals across the entire investment period and in particular for liquidity sufficiency at the bond maturity date. We have therefore installed a continuous liquidity audit procedure whereby the risk advisor regularly provides a certificate of liquidity sufficiency.
Lux Media Investments strives to be fully accountable for results. Net retained earnings are distributed to shareholders only after the principal and interest have been paid in full to the bondholders. There are no commissions and costs at the expense of our bondholders’ coupon interest or deducted from the principal invested capital. In fact,we share the remaining net proceeds deriving from the capital gains with our bondholders.