A 15% dividend from year two onwards.
Returns come from income distributed every year, not from a bet on reselling the assets. A path built pocket by pocket, presented with its assumptions, its valuation method and its risks.
Dividends, not a bet on resale.
Breakwater's returns come from the profits of the stores the fund owns. These profits flow back to the fund and are paid out to investors every year, as a dividend.
This differs from a capital-gains approach, where performance depends on the price obtained at the end of the fund's life. Here, most of the return is received during the life of the fund, year after year: a high, steady return backed by real assets.
The entry price contributes directly. Established stores change hands at 20 to 30 times their monthly margin: a level that leaves a large share of the profit to the investor throughout the holding period.
In the first year, the portfolio is being built and the creation pocket is not yet productive. The 15% target dividend applies from year two onwards; beyond that, there is upside potential once the portfolio reaches full run-rate.
Targets and projections are not guaranteed and non-binding.
Annual dividend distributed, Y1 to Y5.
The fund's dividend combines both pockets according to their weight: two thirds established pocket, one third creation pocket.
Non-binding projection. Annual dividend distributed, as a percentage of capital invested.
What each pocket contributes at run-rate.
The established pocket distributes 12% in Y1, then 15% per year. The creation pocket rises from 0 to 30% between Y1 and Y4.
Non-binding projection. Fund = ⅔ × established pocket + ⅓ × creation pocket.
Five years, a gradual ramp-up.
The dividend grows as the creation pocket matures. The established pocket, for its part, distributes as soon as the stores are acquired.
The portfolio is being built: established stores distribute 12%. The creation pocket is in its launch phase and does not contribute yet.
Established stores distribute 15%. The first niche sites start to rank: the creation pocket reaches 15%.
Successes take hold: the creation pocket reaches 25%.
The creation pocket settles around 30%. The fund distributes about 20% per year, before any sale.
Three scenarios, read with caution.
The scenarios frame the projection. None of them is guaranteed.
| Downside | Target | Upside | |
|---|---|---|---|
| Annual dividend | 10% | 15% | 20%+ |
| Capital at exit | 70% | 100% | 130% |
| Reading | The established pocket carries the dividend alone | The target dividend, capital returned at entry value | The creation pocket outperforms its assumptions |
Capital at exit expressed as a percentage of capital invested. Non-binding projections.
A prudent valuation, reviewed periodically.
Each store is valued on the basis of its margin, applying the multiples observed in comparable sales on the European market. This margin-multiple approach is the one used by buyers and sellers in the sector.
The valuation is reviewed periodically, and at least at every half-yearly report. It reflects changes in each asset's revenue, margin and stability; sites in the creation pocket are only valued once their profitability is established.
The audit committee oversees the method and how it is applied. The portfolio valuation is the reference for liquidity operations and for measuring performance.
- —Margin multiples observed in comparable sales
- —Reviewed at every half-yearly report
- —Overseen by the audit committee
- —Detailed method in the data room
Everyday purchases.
The fund's dividend is the sum of thousands of ordinary orders, placed by customers buying for themselves, their homes or their leisure time.
Everyday purchases.
The fund's dividend is the sum of thousands of ordinary orders, placed by customers buying for themselves, their homes or their leisure time.
What can make returns vary.
Returns depend on assumptions that are monitored continuously. Four factors matter most.
A tighter market raises the prices asked by sellers and lowers the yield of new acquisitions in the established pocket.
If fewer than 25% of builds succeed, the creation pocket contributes less, and later.
Income follows everyday consumption. A sharp slowdown in demand would reduce the stores' revenue.
Performance assumes that TakeMyShop maintains the quality of management as the portfolio grows.
Is the dividend guaranteed?
No. Returns mentioned are targets and projections, neither guaranteed nor binding. They depend on the actual results of the stores.
Why 15% only from year two?
In the first year, capital is still being deployed and the creation pocket has not yet had time to rank in search. The dividend then relies mainly on the established pocket, which distributes from acquisition.
What does upside mean here?
Once the portfolio is at full run-rate, the creation pocket can contribute more than the established pocket. In the projection, the fund's dividend reaches 20% from Y4; the upside scenario assumes 20% or more.
What happens to the capital at exit?
In the target case, it is returned at entry value, i.e. 100% of the capital invested. It may be lower, 70% in the downside case, or higher, 130% in the upside case.
How is the portfolio valued?
Using margin multiples observed in comparable sales, reviewed at least every six months and overseen by the audit committee.
Where can I find the detailed assumptions?
The financial model, its assumptions and its scenarios are available in the data room, once your investor status has been checked.
Known fees, aligned interests.
Management fees, structuring fees, carried interest and hurdle, governance, liquidity and ways to invest: the fund's terms, and how they align the manager with the investor.
Non-binding projections. Returns shown are targets, not guarantees, and are stated before each investor's own taxation. The investment carries a risk of total or partial loss of capital and limited liquidity: exit may be deferred. Past performance is not a reliable indicator of future performance.