The structure is simple. The potential it unlocks is anything but.
Most investment structures offer a single path to a return, typically tied to a future exit. That can mean a long timeline, significant uncertainty, and waiting for a liquidity event (partial or complete sale of the company or public offering).
At Fundamental Brands, we’ve structured our offering differently. Each investment or “unit” includes both preferred shares and common shares, creating multiple potential pathways to returns.
Here’s how it works:
Preferred Shares: Revenue-Based Monthly Distributions*
Your preferred shares are structured to receive monthly royalty distributions based on company revenue—not profits.*
That distinction matters. Because distributions are tied to top-line revenue generated by our portfolio companies, investors are not dependent solely on a future profitability milestone for potential distributions.
- Target annualized return: 8% minimum, with upside capped at 20% annually
- Paid monthly
- Based on the sales revenue performance of our products
*As long as our portfolio companies generate revenue, a percentage of that revenue is allocated to each preferred shareholder, subject to offering terms and company performance.
A potential complete return of your investment.
As a preferred shareholder, you will receive monthly royalty payments for at least three years. After a minimum three-year period, the company has the option (but not the obligation) to repurchase the preferred shares at the original purchase price.
If exercised, this would return your invested capital at the same price you paid for your preferred shares, and you’ll be entitled to keep your common shares. Repurchase is not guaranteed and is subject to the company’s discretion.
Common Shares: Long-Term Equity Ownership
Each unit also includes common shares that represent equity ownership in Fundamental Brands.
If preferred shares are repurchased, investors still keep their common shares. These shares are the same class of common stock held by our founders (of our acquired brands) and management team.
Common shares participate in long-term enterprise value creation. In the event of a future liquidity event, such as an acquisition or public offering, common shareholders would participate proportionally, subject to offering terms.
In Summary
Rather than relying on a single exit event, this structure provides:
- Revenue-based monthly distributions (subject to performance)
- A potential return of capital through repurchase (company option)
- Ongoing equity ownership through common shares
Three Potential Outcomes. One Investment.
To learn more about investing in our growing portfolio, visit our offering page.
Join us at our upcoming investor webinar on Thursday, March 12th, at 12:00 PM EDT / 9:00 AM PDT to learn more about our royalty structure and ask your questions directly.
Interested in learning more about Fundamental Brands?
Visit our Offering Page
Visit our Main Website
Watch Our Explainer Video
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