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PATENT FILED WITH U.S. PATENT OFFICE FOR THE MANAGED VARIABLE RATE DEMAND NOTE (MVRDN)

Patent filed with U.S. Patent Office for the Managed Variable Rate Demand Note

Alternative Capitalization for the Alternative Investment Marketplace

CHICAGO [October 10, 2005] - Joanne Marlowe, founder of United Financial Technologies ("UFT"), a designer and developer of financial instruments and solutions, files a patent today with the U.S. Patent Office for its newest debt-based financial instrument - the Managed Variable Rate Demand Note ("MVRDN").

The MVRDN constitutes a significant improvement upon the conventional VRDN by expanding the potential commercial application beyond conventional asset-based lending process to address the needs of the cash and investment management community. The MVRDN is particularly tailored to function as a new, consistent and high-volume capital resource to the alternative investment marketplace. Specifically, lower cost investment capital that would customarily be relegated to short-term, money-market oriented, investment grade financial instruments is conservatively transitioned for use within the alternative investment, hedge fund, fund-of-funds, and multi-strategy hedge fund market.

“At its highest and best use, the MVRDN is an ideal instrument to be issued by an investment fund, asset manager or fund-of-funds seeking to more cost-effectively and consistently source a high volume of debt capital to complement, supplement or leverage its assets under management,” comments Joanne Marlowe, Chief Executive Officer, United Financial Technologies. "The MVRDN makes an exceptional surrogate for the use of a conventional Collateralized Fund Obligation ("CFO")."

Historically, this type of substantial debt-based finance would have been sourced through bank lines of credit and leverage facilities as the basis to enhance available assets under management. These conventional practices generally come at a substantial cost and infrastructure burden to the Asset Manager as the borrower. Additionally, they are entangled with certain inherent risks associated with leveraged losses on an investment portfolio. Through a series of mechanisms that secure both principal and interest to produce an investment grade financial instrument suitable for institutional subscription, the MVRDN provides an alternative vehicle for accessing debt capital on a non-leveraged and more cost efficient basis. By so doing, the Issuer is able to avoid leveraged exposure while enhancing its asset base and is not saddled with excessive bank interest, fees, and charges associated with establishing conventional, institutionally underwritten credit facilities.

The MVRDN constitutes an exceptional adaptor between the interests of what have thus far been mutually exclusive investment profiles and objectives; the highly conservative nature of the money market investor and the highly specialized and aggressive nature of the hedge fund investor . When an instrument successfully bridges the gap between areas of operation or business that have previously remained untethered by common economic interests and goals, new market efficiencies are the natural bi-product. The MVRDN stands to produce such efficiencies both by fostering new and compliant investment opportunities for the traditional money-market institutional investor while also producing new and more cost-efficient capital sources for qualified Asset Managers. Through its market enhancements and the participating involvement of experts in fund management and credit underwriting, the MVRDN stands to reach across capital market borders, availing capital that customarily would not be accessible for longer term or alternative investment.

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United Financial Technologies, a designer and developer of financial instruments and solutions, is a privately held company headquartered in Chicago, Illinois.

FOR MORE INFORMATION
CONTACT:
mediarelations@unitedft.com
847-604-8055

Notice: The information contained in this announcement is only accurate as of the date of its publication and release, and may contain certain forward-looking statements based upon anticipated events that may or may not come to pass. The company makes no representation or warranty as to the correctness or accuracy of the information contained herein, and is under no obligation to update this information at any time after the date of release.

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