Draft:FENRIR Funds

FENRIR Funds

FENRIR Funds is an umbrella term which stems from the team behind FENRIR AS which is a Norwegian Oslo-based Alternative Investment Fund (AIF). It specialises in managing financial assets across various sectors, utilising its full-cycle fund strategy approach to optimise returns for its investors. The company operates under the regulations governing Alternative Investment Funds (AIF). It is managed by TRENT AS, its registered Alternative Investment Fund Manager (AIFM) ensuring compliance with the legal framework that mandates transparency, investor protection, and risk management within the alternative investment sector.

History

FENRIR AS was founded on the 4th of January 2024. It was founded with a focus on creating and providing diversified investment opportunities across a range of industries. The company's management team, led by Olav H. Trent and Thomas Due, established a comprehensive investment strategy that emphasises long-term growth and financial governance.

Full-Cycle Framework

The Full-Cycle framework is an investment model designed to support businesses through multiple funding rounds, while carefully managing and protecting against the dilution of ownership whilst maintaining balanced investor equity. It operates by gradually introducing capital through sequential rounds, with each round structured to convert a portion of the investment into equity. This method ensures that as the business grows and additional funds are injected, investor ownership is fairly distributed, with conversions occurring at key stages to reflect the company's evolving valuation. The framework also includes a drip model, which regulates the distribution of returns among investors. This model ensures that returns are allocated proportionally based on each investor's equity share at the time of conversion. By maintaining this structured approach, the Full-Cycle framework mitigates the risk of rapid founder dilution and provides a clear pathway for growth, while safeguarding investor interests across the different funding stages.

Additionally, the Full-Cycle framework incorporates convertible investment mechanisms, allowing for flexible funding that adapts to the company’s performance and needs at each stage. These convertible investments are designed to protect early investors by gradually converting debt or other instruments into equity as specific milestones are achieved, ensuring that investor equity aligns with the company’s increasing value. This approach also helps maintain company control in the early stages, balancing the influx of capital with strategic growth.

Risk management is a key element of the Full-Cycle framework. Through its phased investment structure, the framework spreads risk across multiple rounds, providing investors with a clearer view of their potential returns at each stage. The drip model further supports this by ensuring proportional returns, reducing the likelihood of any single investment group bearing a disproportionate amount of risk. This method enables both investors and founders to focus on long-term value creation, aligning their interests for sustainable business growth.