Underwritten before it is funded.
Controlled after it is deployed.
Every proposal the Fund considers passes through the same assessment, and every accepted transaction carries controls over how money is handled after it leaves the Fund. The purpose is not to remove risk — it is to make certain that a transaction is understood before capital is committed and that its progress is visible afterwards.
These measures reduce the chance that a problem goes unnoticed. They do not eliminate risk, and no return of capital or investment return is assured.
Four layers before capital is committed.
Assessment runs in four connected layers. A proposal that cannot satisfy one of them is sent back for more evidence or declined.
- 01
Business
The enterprise behind the proposal: promoter and operating history, financial records, statutory and compliance standing, and the capability to complete what is being funded.
- 02
Transaction
The specific invoice, order or project: what exactly needs funding, what evidence supports it, and whether the commercial purpose and the amount requested are defined.
- 03
Counterparty
The party actually obliged to pay. Credit quality, payment conduct and capacity are assessed, together with dispute, offset, dilution and concentration exposure.
- 04
Execution & controls
What must happen for the transaction to complete: documentation, collection routing, milestone gates, reporting obligations and how an exception is detected and escalated.
What sits around the money.
Safeguards are applied to the transaction, not to the Fund as a whole. Which of them apply, and in what form, is agreed with the enterprise before capital is released.
Escrow on collections and realisations
Proceeds from financed invoices and funded projects are routed through escrow or controlled accounts before they are applied or distributed. Escrow organises money that has actually been received.
Finance and compliance oversight
In managed joint structures, Karncy seeks an investor-and-comptroller role rather than a passive one: agreed oversight of finances, banking arrangements, compliance obligations and project milestones.
Enterprise MOUs
A memorandum of understanding with the enterprise records responsibilities, commercial terms, information rights and the agreed handling of collections before capital is deployed.
Credit insurance where appropriate
Credit insurance may be considered where it is available and suitable for a given exposure. Cover responds only within its policy terms, conditions and exclusions.
These transaction controls sit alongside the Fund's fixed working structure: no single asset above 5% of the Fund's capital, no purchases of real assets, and deployment limited to short-duration, self-liquidating exposures. Subscription funds are deposited into the Fund's operating account upon acceptance of a subscription and are not held in escrow or a segregated deposit account.
What these measures do not do.
These controls improve visibility and the handling of money. They are not a guarantee, and investors should read them alongside the key risk factors.
Escrow organises proceeds that have actually been collected. It cannot compel a buyer or borrower to pay and does not create funds when a counterparty defaults.
Subscription funds are deposited into the Fund's operating account upon acceptance of a subscription and are not held in escrow or a segregated deposit account. Escrow arrangements apply to transaction collections and realisations, not to money subscribed into the Fund.
Oversight of finance and compliance gives the Manager visibility and a role in how money is handled. It does not make the Manager responsible for running the enterprise, nor does it assure the enterprise's performance.
Credit insurance, where used, is subject to underwriting, deductibles, policy conditions, exclusions, notification requirements and the insurer's claims decisions. Not every exposure can be insured, and insurance does not guarantee recovery.
A memorandum of understanding records agreed intentions. Enforceability depends on the final executed documents, applicable law, and the counterparty's ability to meet its obligations.
Taken together these measures reduce the chance that a failure goes unnoticed. They do not eliminate default, delay, fraud, legal, currency, regulatory or liquidity risk, and no return of capital or investment return is assured.
Read the safeguards alongside the offering documents.
The Private Placement Memorandum, Company Agreement and Subscription Agreement set out the Manager's discretion, the fee and distribution mechanics, and the complete risk factors. Nothing on this page modifies those documents or creates an entitlement.