Becoming A FlarePoint Partner
01. What is the $100K underwriting fee for?
Our syndicate deposit serves as both a commitment filter and cost-sharing mechanism, ensuring that funding applicants are financially accountable while pre-screening out unqualified participants. It also offsets essential SPV formation expenses, including legal, regulatory, due diligence, and business development costs, which are not subsidized by the fund.
02. When does the founder/sponsor get their underwriting fee back?
Under the FlarePoint structure, the sponsor’s $100,000 underwriting fee is reimbursed from the first capital successfully raised, effectively returning the sponsor’s upfront capitalization cost once the offering reaches a funding milestone.
03. What is the benefit of being an LP?
The benefit of being a Limited Partner (LP) is access to professionally managed, high-yield investments with limited liability and no operational responsibilities.
SPV Formation
01. What do you get when you form an SPV with FlarePoint?
FlarePoint does more than form an entity. We transform a vetted opportunity into an institutionally structured, capital-ready investment vehicle.
Your engagement can include comprehensive due diligence, financial engineering and modeling, optimized capital-stack design, SPV formation, securities counsel and offering documents, investor-grade presentation materials, a structured data room, capital campaign strategy and execution, investor underwriting and closing coordination, and ongoing SPV administration.
FlarePoint also serves as the General Partner, bringing its investment infrastructure, multidisciplinary team, capital relationships, and continuing oversight to the opportunity.
Most importantly, our interests remain aligned after formation. Rather than building our economics around inflated success fees, FlarePoint’s primary upside comes through carried interest generated by the investment’s performance.
You bring the opportunity. We build the investment vehicle designed to capitalize it.
Your engagement can include comprehensive due diligence, financial engineering and modeling, optimized capital-stack design, SPV formation, securities counsel and offering documents, investor-grade presentation materials, a structured data room, capital campaign strategy and execution, investor underwriting and closing coordination, and ongoing SPV administration.
FlarePoint also serves as the General Partner, bringing its investment infrastructure, multidisciplinary team, capital relationships, and continuing oversight to the opportunity.
Most importantly, our interests remain aligned after formation. Rather than building our economics around inflated success fees, FlarePoint’s primary upside comes through carried interest generated by the investment’s performance.
You bring the opportunity. We build the investment vehicle designed to capitalize it.
02. Will the founder/sponsor be a general partner? [GP]
Most FlarePoint SPV founders participate in the General Partnership, with roles and terms defined contractually prior to subscription.
03. Will the founder/sponsor have a say or control in the SPV?
You don’t hand over your project when you partner with FlarePoint. The SPV is structured to preserve appropriate founder/sponsor participation and decision-making authority while providing the governance, investor protections, and institutional oversight required to responsibly manage outside capital. Specific voting rights, reserved matters, and control provisions are negotiated and defined during formation.
Return on Investments
01. How is the ROI calculated?
ROI is calculated by dividing net distributions by the total capital at risk, including deposits and pledged collateral. For example, if a project yields $10MM net (after OpEx AND debt service) over 5 years and required $2MM in letters of credit plus $200K in deposits, the ROI would be $10MM ÷ $2.2MM = 454.5% 5-year ROI.
02. How are returns calculated with BTC mining?
Bitcoin mining returns are based on BTC’s value at the time of mining, with FlarePoint applying conservative price forecasts in all projections.
03. What is the dividend distribution schedule?
Dividends are distributed as frequently as monthly, with most SPVs generating profit within six months of full subscription.
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