Royal Fund Switzerland

ROYALFUND.CH


Long-Term Conservative Risk Asset Management of Energy Capital Properties

Qualified Institutional Investors and Institutional Family Offices considering co-investment participation in Royal Fund Switzerland, a Permanent Capital Vehicle structured under Swiss law.

Permanent Capital VehicleSwiss SPVInstitutional Grade

The Convergence Opportunity: Why Now

Three historically siloed asset classes — Commercial Real Estate, Energy Utility, and Cybersecurity/IaaS — are converging into a single, high-margin infrastructure layer, creating a structural opportunity available only to vertically integrated operators with permanent capital mandates.

Investment Thesis

AI Compute Demand Inflection

Unprecedented power and physical infrastructure requirements driven by large-scale AI model training and inference workloads. Legacy co-location facilities — architected at 10 kW/rack — are structurally incapable of meeting 200 kW/rack density requirements without complete reconstruction.

Distressed Real Estate Cycle — Southern California

Post-pandemic dislocation in commercial real estate creates programmatic acquisition opportunities at steep discounts to par and replacement value. Bankrupt titles, CMBS defaults, and tax delinquencies generate high-volume deal flow for disciplined capital deployers.

Energy Independence via SMR Joint Ventures

Deep Atomic M60 Small Modular Reactor joint venture deployments sever grid dependency entirely. Power rate locked at $0.18/kWh — eliminating public utility price volatility and creating a permanent structural cost advantage over grid-dependent competitors.

Swiss SPV Jurisdictional Advantage

Swiss Special Purpose Vehicle structure delivers institutional-grade tax efficiency via the Participation Exemption, treaty protection under the US-Switzerland Double Taxation Treaty, privacy, and cross-border capital compounding unavailable in domestic fund vehicles.

Fund Structure

Fund Overview & Structure

Vehicle Architecture

Vehicle Type

Permanent Capital Vehicle (PCV) — Swiss Special Purpose Vehicle domiciled in tax-favorable Cantons (Zug or Schwyz)

White-Label Operator

Swiss Portfolio Management AG — utilizing Protected Cell Company (PCC) framework (Reditus Capital PCC Ltd, Guernsey) or Luxembourg RAIF structure

Instruments Issued

ETFs, Bonds, or Medium-Term Notes (MTNs) bearing Swiss or Global ISIN — fully tradeable, globally custodied with premier institutional banking partners

Regulatory & Partner Framework

Governance

Governance & Investor Protections

Royal Fund Switzerland is structured to provide co-investment partners with institutional-grade governance rights, structural downside protection, and defined exit optionality consistent with permanent capital best practices.

1

Pro-Rata Ownership Mechanics

Governance strictly reflects proportional ownership — no unilateral management override. All material decisions require investor-weighted consensus aligned with capital contribution.

2

Supermajority Provisions

75%–80% consensus required for major capital events including share dilution, leverage expansion, or core IP disposal. Protects minority co-investors from adverse unilateral action.

3

Tag-Along Rights

Structural protections ensure all co-investors participate in any liquidity event on equal terms — preventing selective exits that disadvantage minority capital positions.

4

Put Options

Exercisable after a 10-year holding period at independently audited fair market value — providing a defined exit floor and permanent capital optionality for long-duration investors.

AML & Regulatory Compliance

All operations fully aligned with FINMA obligations and the Swiss Anti-Money Laundering Act (AMLA). Investor onboarding subject to full KYC/AML verification consistent with Swiss financial market standards.

Asset Segregation — PCC Framework

Protected Cell Company framework ensures ring-fenced liability per cell. Investor capital is structurally insulated from cross-contamination between asset classes, geographies, or operational entities.

Chapter 1

The Digistructure
Investment Thesis


Binding physical real estate with proprietary energy capacity and high-margin compute services to maximize revenue density and compress CapEx across a single integrated infrastructure platform.

1

Commercial Real Estate

Distressed pipelines, LIHTC, commercial towers

2

Energy Utility

SMR JVs, tokenized wholesale blocks, $0.18/kWh

3

Cybersecurity & IaaS

CipherBit engine, E7 Cyber Appliances, compute revenue

4

Integrated Moat

Unrepli­cable cost structure, density, and independence

Digistructure Thesis

Digistructure: Three Pillars, One Moat

The Digistructure thesis binds physical real estate with proprietary energy capacity and high-margin compute services, maximizing revenue density per square foot while compressing CapEx through vertical integration. No single-pillar competitor can replicate the integrated cost structure, energy independence, and compute density simultaneously.

Pillar 1 — Real Estate

Distressed acquisition at discounts to par provides hard asset collateral, senior debt backstop, and steady leaseback income — anchoring the fund's capital preservation mandate.

Pillar 2 — Energy

SMR joint ventures eliminate grid dependency. At $0.18/kWh locked, fund infrastructure operates at a structural power cost 40%–60% below market grid rates, creating durable margin compression on competitors.

Pillar 3 — IaaS

CipherBit's real-time risk quantification engine and E7 Cyber Appliances drive deeply integrated tenant contracts with high switching costs — translating to predictable, low-churn compute revenue.

Chapter 2

Asset Management Strategy
& Property Pipelines


Programmatic distressed acquisition across five distinct profile archetypes — each designed to generate immediate yield, tax benefit, or both — deployed against Southern California's post-cycle commercial real estate dislocation.

01

Loan Assumption & Multifamily Reposition

Acquire pre-foreclosure CMBS debt below market; LIHTC conversion

02

Hospitality Auction Conversion

Bankrupt extended-stay properties via courthouse auction

03

Rescue Capital & Recapitalization

Preferred capital into stalled transit-oriented builds

04

Entitlement Arbitrage via Tax Default

County tax delinquency records; commercial land below market

05

Historic Restoration & Tax Credit Stacking

Federal HTC + Section 42 LIHTC on distressed heritage inventory

Asset Pipeline

Distressed Real Estate Pipeline: 5 Acquisition Profiles

Equity deployed per transaction: $3M–$8M targeting distressed debt, bankrupt titles, or underperforming facilities at steep discounts to par and replacement value across Southern California's commercial real estate cycle.

1

Loan Assumption & Multifamily Reposition

Acquire pre-foreclosure CMBS debt below market; convert up to 40% of units to Section 42 LIHTC compliance for stable cash flow and institutional tax offsets. Leverages existing debt structures for accelerated acquisition timelines.

2

Hospitality Auction Conversion

Purchase bankrupt extended-stay properties via courthouse auction; execute change-of-use to permanent affordable housing targeting 95% occupancy within 18 months. Courthouse auction sourcing provides maximum basis compression.

3

Rescue Capital & Recapitalization

Inject preferred capital into stalled transit-oriented builds; secure preferred returns and majority equity control with in-house contracting to compress construction timelines and preserve developer relationships.

4

Entitlement Arbitrage via Tax Default

Identify county tax delinquency records; acquire underutilized commercial land below market, rezone for high-density affordable housing, execute high-multiple sale or leaseback upon entitlement completion.

5

Historic Restoration & Tax Credit Stacking

Stack Federal Historic Tax Credits (HTC) with Section 42 LIHTC on distressed heritage inventory; immediately recapitalize via institutional tax-credit sales while retaining the physical asset for perpetual yield generation.

Digital Infrastructure

Ultra-High-Density Digital Infrastructure

Density & Capital Efficiency

200 kW/rack

Benchmark power density — a 10x–20x efficiency leap over conventional 10 kW co-location facilities. Full liquid-cooling readiness for AI LLM training and HPC hosting.

67% Shell Cost Reduction

Density advantage reduces physical building shell costs by up to 67%; 84%–95% of fund deployment flows directly into revenue-generating IT and energy infrastructure.

Flagship Campus Summary

Power Density: ECP vs. Conventional Co-location

ECP's 200 kW/rack architecture delivers a 20x density advantage over the conventional 10 kW co-location standard, enabling dramatically superior capital efficiency and revenue per square foot.

Flagship Properties

Energycapitaltower: The Core of Ultra-Density

Energycapitaltower stands as a cornerstone of our digital infrastructure portfolio, designed from the ground up for unparalleled power density, sustainability, and operational resilience.

365MW Independent Power

A dedicated, self-sustaining power grid ensures unmatched uptime and energy cost stability, crucial for high-demand AI and HPC workloads.

2x 5-Story, 200,000 Sq Ft

Purpose-built vertical design across 5 acres optimizes footprint for ultra-high-density compute, featuring advanced liquid-cooling readiness.

Strategic Southern California Location

Leverages critical connectivity and infrastructure in a key economic hub, providing low-latency access to major digital markets.

Flagship Properties

Flagship Property Profiles

Three strategically located facilities provide geographic diversification, phased revenue initialization, and multi-decade scalability across the fund's infrastructure footprint.

ECXI 1G — Orange County, CA

  • Multi-phase gigawatt-scale sovereign private cloud campus
  • $18M initial Tokenized Energy Unit (TEU) RWA protocol via InfraFund platform
  • Designed for long-term sovereign and institutional cloud tenants
  • Phased development structure enables staged capital deployment

ECXI 1K Production Facility

  • Immediately operational; signed Letter of Intent in place
  • Geographic redundancy for West Coast operations
  • Enables rapid pre-sale revenue initialization ahead of tower go-live
  • Provides operational proof-of-concept for institutional LP due diligence
Chapter 3

Financial Architecture
& Risk Mitigation


A multi-layered financial architecture combining operating cost discipline, diversified GPU hardware allocation, and hard-asset capital preservation safeguards — designed to sustain institutional-grade distributions across market cycles.

Fee Structure

Nevada holding layer routes fee streams; $350K annual OpEx cap; 3% RE acquisition, 10% exit, 3.5% leadership advisory

GPU Amortization

Multi-tier hardware allocation: BX20 high-yield, A100 NVL arbitrage at 75% discount, B100 bond-like wholesale leaseback

Capital Preservation

30% CapEx reserve escrow, SMR power lock, geographic diversification, supermajority governance, no mark-to-market exposure

Financial Architecture

Fee Structure & Operating Cost Discipline

Fee Schedule