FAIR TO ALL
HYBRID-RISK ENERGY FUND
OUR UNIQUE VALUE PROPOSITION
Oil and gas markets are inherently risky. Recent advances in physics-based artificial intelligence now make it possible to characterize this risk and more accurately structure finance vehicles for oil and gas projects, making them no riskier than a standard home mortgage. Our proprietary analytical algorithms and uniquely structured financial instruments protect investors by minimizing downside risk and maximizing return on capital, regardless of commodity price fluctuations and actual production decline.
LRH Energy Capital LLC’s founders are creators of the industry’s leading oil and gas predictive analytic, production forecasting algorithm. They have spent the last 8 years providing forecasts to help O&G companies optimize production and determining valuations on oil and gas-based loans while producers, investors and insurers worked to finance these ventures. They have seen these complex transactions from both sides of the table and understand in detail the goals and challenges of each stakeholder.
LRH Capital Hybrid-Risk Funds have been created to take advantage of this unique lens into the capital markets, combined with the newest, most powerful technology, to create a novel financial offering.
Capitalizing on the resultant positive arbitrage created by the LRH Team, the Fund identifies oil and gas finance opportunities which meet the LRH criteria for underwriting and which have significant and predictable upside potential. Using the LRH proprietary KC-Hybrid Risk™ model, the Fund’s capital investments provide IRR's with a range of 15% to 20%, or more. In addition to the repayment of Principal and a preferred coupon, the Fund allows for investors to participate in the upside of both production and price escalation. The duration of the Fund is seven years, with over 50% of invested capital returned by the third year.
LRH engineers its deal flow for 2x to 3x (or higher) returns. Proprietary algorithms allow us to see future hydrocarbon production on both producing wells and wells yet to be drilled.