Financial Model
The investor model. Cleanly built.
Capital flow, phased deployment, six revenue channels, and a self-liquidating debt structure. Indicative figures presented for institutional review. Full model available under the IM.
Capital Required
$45M
LRG Leather Botswana SPV
Year 3 Revenue
$40M
Indicative
Year 5 Revenue
$105M
Indicative
Target IRR
22-28%
Strategic equity tranche
01. Phased Deployment
Capital, drawn in stages.
Capital is drawn against milestones. Never sunk in a single tranche. Each phase de-risks the next.
Phase 1: Land & Licensing
Q4 2026
SEZA license · land title · environmental approvals · master plan · early Italian partner contracting.
Phase 2: Tannery
Q2 2027
Tannery construction · machinery procurement · water treatment · first hides commissioning.
Phase 3: Manufacturing
Q4 2027
Footwear, handbag and accessories lines · Italian master-craftsmen training programme.
Phase 4: Export Scale
Q2 2028
Working capital ramp · distribution agreements · brand & marketing · Phase 2 expansion design.
02. Revenue Channels
Six channels of cash flow.
Indicative Year 3 and Year 5 revenue per channel. The model isn't single-product. It's a platform.
03. Investor Return Logic
Returns, structured.
Three return engines and a self-liquidating debt layer. Capital is repaid before equity participates in upside.
Senior equity tranche
Priority distributions from operating cash flow and tannery sales.
Self-liquidating debt structure
Long-tenor structured debt serviced from contracted offtake revenue.
Strategic equity upside
Common equity participation in finished-goods margin and brand value.
Phase 2 expansion option
Pre-emptive rights into the Phase 2 expansion SPV at favourable terms.
Coming next phase
Interactive scenario model. Adjust capital, timeline and offtake mix to see returns recalculate live.
Three Tracks
Invest. Partner.
Manufacture in Botswana.
Capital Partners
Equity into the LRG Leather Botswana SPV. $45M structured for institutional and family-office capital.
Strategic Partners
Italian manufacturers, machinery suppliers, financiers, training institutions, export buyers.
Manufacture in Botswana
Secure production capacity inside the SEZA-aligned Lobatse facility. Reserved lines, audited quality.