Karncy Ventures partners with an established SME on a single assured and commercially viable project with higher return potential. Karncy enters as investor and comptroller: the SME brings execution capability, Karncy brings capital and control over compliance, cash flows and operational discipline until the project closes and the investor payout is settled.
Each venture is ring-fenced to one project. The comptroller role gives the Fund visibility and control over the money and the compliance around it, without taking over the SME's wider business.
Karncy's role in each venture is defined contractually across three areas: statutory and contractual compliance, control of project cash flows, and day-to-day operational discipline. Scope is limited to the project; it does not extend to the SME's wider business.
Karncy tracks the statutory and contractual obligations attached to the project venture.
Project money moves through accounts Karncy can see and, where agreed, co-sign.
Comptroller-level control over the operating discipline of the project itself.
Governance arrangements are negotiated transaction by transaction and applied where commercially feasible. They mitigate but do not eliminate risk, and are not a guarantee of performance, repayment or distribution.
Each opportunity is underwritten on its own commercial merits.
Operational and financial quality of the borrowing business.
Significant weight is placed on promoter quality and management integrity.
Bottom-up market work supports each underwriting decision.
Where commercially feasible, transactions are structured with protective rights and monitoring mechanisms.
Karncy Ventures selects an assured project, forms the joint venture, deploys against milestones and administers compliance and cash flows as comptroller until the project closes and the investor payout is settled.
Select an assured, viable project with contracted demand
Form the joint venture and define the comptroller mandate
Deploy against verified execution milestones
Control cash flows and compliance through to close and payout
The Fund participates in the economics of a specific project as a joint venture partner, rather than lending against the business and waiting for scheduled repayments.
The venture is ring-fenced to one project. The SME retains ownership of its wider company, valuation and board control; Karncy's control is over project compliance, banking and cash flows.
As comptroller, Karncy oversees statutory compliance, project accounts, collections and operating discipline throughout the cycle, with contractual protections and step-in rights where commercially feasible.
Where the Manager structures a project-level arrangement, proceeds are typically applied in the order below. This describes transaction-level mechanics negotiated with the sponsor — it is not a description of the Fund's own distribution terms, which are set out in the Fund's governing documents.
Taxes, statutory dues and the operating costs required to keep the project delivering.
Capital deployed into the project is returned before any profit participation.
Contractually agreed returns on the deployed capital are settled next.
Any remaining surplus from the project stays with the sponsor.
