How Venture First Partnered
Secured Funding
Venture First executed a $3 million debt facility for Boone’s Ridge (formerly The Appalachian Wildlife Foundation), a non-profit organization that is constructing a $56 million, 12,000-acre wildlife development center in Bell County of Southeastern Kentucky. The project is expected to host 1 million annual visitors, create 2,900 new jobs, and generate over $174 million in annual spending for one of the poorest counties in the US.
Structured Strategy
Boone’s Ridge received a $7.0 million budget appropriation from the Commonwealth of Kentucky that was paid out in two equal payments. The first payment was made in July 2022 and the second was paid in July 2023. They sought a cash advance based upon the security of the future appropriated funds. Due to the uniqueness of this structure, Venture First was in an exclusive position to offer this debt facility to eligible accredited investors through an SPV. The $3 million debt issuance was fully collateralized by a government budget appropriation to be paid within 12 months, and an added royalty component attached to the loan guarantees five years of royalty payments based on operating revenues after the official opening. This is a unique security that has the downside risk protections of a debt facility while producing equity-like returns.
Local Involvement
As a company founded and operating by native Kentuckians, Venture First is always eager to support and prioritize in-state investments. This opportunity will help spur economic development in what has traditionally been an underserved region of the state.
