ROAD TOWN, British Virgin Islands, April 23, 2019 /PRNewswire/ -- Convergence Partners announced today that its partners had previously completed three acquisitions of Caribbean Community divisions of companies specializing in the purchase of guaranteed and non-guaranteed payment contracts. These acquisitions have been merged with the new group solely focused on purchasing such contracts in the entertainment industry, with all non-entertainment related assets having been sold.
"For some time, there has been a need to accelerate long-term payment contracts into lump-sums to provide flexibility to the industry's creative professionals in changing economic conditions, while assuring their continued performance to the terms of the contract. The firm has deployed a model that provides for one of the highest payout rates for contracts of this type, while providing protection against performance slumps, non-payment, and unforeseen economic factors, while complying with existing contractual terms," said Timothy Batchelor, Co-Founder, Convergence Partners.
"Creative professionals with long-term payment contracts from, for example, video on-demand players can struggle with opportunities to monetize their contract, while maintaining the integrity of the value negotiated in those contracts. Our solution brings a sorely needed fix to the disparity between buyers and sellers in the industry," added Shawn Beswick, Co-Founder, Convergence Partners.
The group is headquartered in the Caribbean Community, but will maintain a practice in the firm's other market facing offices, Dubai and Singapore. Given the pre-announcement demand, Convergence Partners anticipates closing an additional 18 to 24 transactions by the end of 2021. By contract, the firm is allowed a maximum of 12 transactions per year, and pricing-to-contract ratios begin to decline after six transactions in the same calendar year due to offsets the firm has employed to manage risk.
Convergence Partners was co-founded by Timothy S. Batchelor and Shawn L. Beswick in 2009. The firm does not accept or manage capital from or on behalf of outside investors, and no securities offering is being made related to the firm's activities. All transactions are through and for the exclusive benefit of the personal accounts of those partners assigned to a specific project. More information is available at https://www.convergence-partners.org.
SOURCE Convergence Partners