This offering page is being operated by Rialto, an SEC registered broker-dealer. 

Reg BI – Relationship Summary

Terms

OfferingType:

Crowdfunding

Security Type:

Class A Units

Maximum Offering:

$5,000,000.00

Target Offering:

$500,000.00

Minimum Investment:

$500.00

Broker Dealer:

Rialto Markets

Transfer Agent

KoreTransfer USA LLC

Escrow Agent:

West Town Bank & Trust

Holders of Units of Class A membership interests are entitled to the amount, if any, that would be required to be distributed on such date so that the aggregate distributions to such member provide a cumulative, non-compounded return equal to ten percent (10%) per annum (“Class A Preferred Return”).

Unique deal flow and investment opportunities

Seeking to provide direct access to Business Loans.

Investor-friendly fund structure

The Midas Fund is designed to eliminate the challenges of traditional private markets structures and investing by utilizing Crowdfunding.

Potential to achieve attractive returns

With a unique opportunity set in private markets.

Business Loans: The How and Why of
Investing in Business Lending

Business Loans as an investment can offer higher yields and lower volatility than traditional fixed income. Investors should consider this investment alternative, especially in a new era of rising interest rates. “The hunt for yield” has become a dominant theme for today’s fixed-income manager, with bond yields near historic lows and the reality of rising rates creating the potential for significant capital losses on existing portfolios.

The Midas Fund CF

Why Business Loan Lending


What is the Total Addressable Market (TAM)? 

The Total Addressable Market (TAM), also referred to as total available market, is the overall revenue opportunity that is available to a product or service if 100% market share was achieved. It helps determine the level of effort and funding that a person or company should put into a new business line.

What is a Business Lending Fund?

A business lending fund is a pool of private capital dedicated to investing in loans that are collateralized
by business loans. Borrowers may need short-term capital for a number of different reasons, including
business acquisition, construction, ground-up developments, or refinancings. 

Differentiating
Attributes Between Funds

Differentiating
Attributes Between Funds

Most funds tend to focus on a single strategy – whether on a particular asset type, type of security, or perhaps geography. As investors contemplate various options, it is pertinent to examine the competitive advantages of each fund, and how these may impact their personal risk / return profile.

Understanding the Basis of Business Lending Investing

Investors in business lending serve as lenders to business owners to help purchase, renovate or
repurpose a business . An investor’s return is largely driven by the interest income paid on the loan (or
other form of debt) and retains a degree of insulation if the business continues to generate sufficient
net operating income. That is, business lending investors are paid ahead of business owners, which is
important if there is a change in the amount of income a business generates or the value of a business.

Auto Care

• Auto care is an essential business, recession-resistant and demonstrating proven stability during economic downturns.

• From the engine cavity to the wheel well, Midas stores support multiple, sustainable revenue streams including: automotive services, tire installation and sales, and fleet services.

• With more cars on the road each year and the average lifecycle of vehicles now averaging 12 years, many vehicles are exceeding manufacturer warranty periods and 90% of vehicles do not return to the dealer for service.1

• When you focus on tires, you gain access to the wheel well, in addition to the engine compartment, where $0.80 of every maintenance dollar is spent.2

 

1 Auto Care Factbook, published by Auto Care Association, 2021  

2 Auto Care Factbook, published by Auto Care Association, 2021

Market overview – United States automotive service
market – growth, trends, COVID-19 impact, and
forecast (2022 – 2027)

The United States automotive service (USAS) market was valued at USD 64.41 billion in 2021, and it is
expected to reach USD 76.91 billion by 2027, 

The Company intends to lend capital to the Acorn Automotive Group (AAG)

Acorn Automotive Group (AAG) serves as a comprehensive network within the automotive sector, primarily known for its strong affiliation with Midas, a leader in auto repair and maintenance. This collaboration has positioned AAG entities as key Midas franchisees and managers of Midas franchisees, a role that not only enhances their service offerings but also aligns them with the high standards of quality and customer service associated with the Midas brand. Through this partnership, accessible via their website www.acornauto.com, AAG leverages Midas’ vast expertise, technology, and marketing strategies. This ensures the delivery of superior auto repair and maintenance services across Michigan, making them a primary choice for automotive needs. The entities MI Auto Serv Portfolio Holdings, LLC (MASPH), Acorn Auto Services, Inc., Acorn Tire and Auto, LLC, and Phoenix Auto Specialists, Inc., MASPH GR, LLC, MASPH Southgate, LLC, alongside several management-focused firms such as MASPH Management Co, LLC, and MASPH Management Warren, LLC, highlighting AAG’s expansive capabilities and its strategic focus on automotive management and operations.

 

Secondary to its role as a Midas franchisee, AAG also includes Acorn Towing, LLC, an entity that extends towing services across various Michigan locations. Detailed information about their towing services can be found at www.acorntowing.llc, underscoring AAG’s commitment to providing a full suite of automotive solutions. The inclusion of towing services complements AAG’s primary focus on auto repair and maintenance, ensuring a holistic approach to automotive care that addresses both immediate and long-term needs of vehicle owners. Midas Advisors, LLC, unique within the group, acts not just as a manager but as the sole Class B member of the Company, orchestrating the integration of Midas’ operational excellence across AAG’s spectrum of services. The strategic decision to lend capital to Acorn Automotive Group is a testament to its potential for further expansion and its pivotal role in delivering high-quality, comprehensive automotive services that resonate with the values and efficiency of the Midas brand.

https://www.spglobal.com/mobility/en/research-analysis/as-america-becomes-a-nation-of-old-cars-mechanics.html

Now more than ever, Midas is a leader in the auto repair industry. Automotive retail is one of the fastest-growing technology market and as a Midas franchisee leveraging a proven business model that’s at the heart of our robust and recession-resistant opportunity! 

• Best-in-class operational support
• National Fleet accounts
• Real Estate site search and lease negotiation
• Marketing resources
• Midas has been in business for over 60 years
• Franchisee learning and development is ongoing: It’s not an event

Auto Repair?
Midas is Able to Do It!

Many Midas franchisees are proud to feature certified technicians, making us a top destination in the auto care industry for urgent auto repairs as well as routine maintenance and quick service oil changes. Your Midas franchise will become a go-to resource for your community to turn to time and time again.

The Midas Parent Corp. Owners are Tire Manufacturers: TBC Corporation

The Midas brand is part of the TBC Corporation umbrella of companies.
TBC Corporation is jointly owned by two of the world’s most respected
mobility solution providers: Michelin North America Inc. (MNAI) and
Sumitomo Corporation of Americas (SCOA). In 2018, each company
agreed to a 50-50 stake of TBC Corporation.

You are wrong if you think that the electric vehicle will be the end of the independent shop. You
might be losing spark plugs, air filters and timing chains. But, you are gaining and retaining many
service opportunities.

Batteries
Even a Tesla has a 12-volt battery used to power a number of systems on the vehicle like the ABS,

Cooling Systems
Battery packs, inverters and motors need to be cooled and heated. The coolants are nonconductive glycol-

Tires
EVs can be hard on tires due to the instant torque of the electric motor. Also, the weight of the

TPMS
Electric and hybrid vehicles must be equipped with a tire pressure monitoring systems. The majority

Suspension
EVs travel on the same roads as conventional vehicles. They are not immune to curbs and

Steering

Since there is not an engine to drive a hydraulic power steering pump, electric power steering is

Wheel Bearings

Electric vehicles have the same wheel bearings as other vehicles. Just like the suspension, wheel

Brakes
EV vehicles recharge the high-voltage battery with regenerative braking under most conditions.
With regenerative braking, the motor turns kinetic energy into electrical energy.

Alignment

All EVs need chassis alignment. The benefits of an alignment for EVs are two-fold. An alignment

Diagnostics

All vehicles require diagnostics to find the cause of a customer complaint or drivability issue.

Inspection

The more cars change, the more they stay the same. No matter if it is a diesel or EV,
inspections with a checklist will still uncover service opportunities.

Debt funds differentiate themselves based on a number of investing guidelines. TMF currently positions itself in the following way.

Position in the Capital Stack

Senior Secured Loans

Target Loan Size

$250,000 – 3,000,000+

Investment Sector

Automotive

Collateral Types

First Secured Business Loan

Geographies

United States of America

Collateral Package

Typically includes senior Loan, pledge of shares of the borrowing entity, multi franchise owner company guarantee of lease

Debt Duration Target

5-30 years

The Manager of the Fund is Midas Advisors, LLC, a Michigan Limited Liability Company. It is operated by the following officers:

Mr. Mathew Abell

Matthew Abell is an accomplished professional with a robust background in both the automotive and real estate industries. His career began at Sanwa Business Credit, where he started as a Credit Analyst in 1992, meticulously reviewing financial data to assess credit risk. By January 1995, Matt transitioned to a Lease Administrator role within the same company, honing his client servicing and business development skills. He also completed his Bachelor of Arts in American History at Oakland University the same year, establishing a strong educational foundation for his future endeavors. Professionally, Matt’s trajectory continued upward as he moved into the role of Regional Sales Manager at GreenTree Financial in 2002, where his exceptional relationship-building skills drove sales and company growth. He later excelled as a Real Estate Broker at Cushman & Wakefield, managing critical real estate transactions until April 2010. Matt’s strategic insight into the real estate market flourished during his tenure as the Senior Vice President of Real Estate at Skyline Property Group, a role he held for over a decade. Currently, as the President of Acorn Tire and Auto since March 2022, Matt leverages his industry expertise and innovative leadership to maintain a portfolio of auto repair facilities and towing, ensuring the highest service quality and customer satisfaction.

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DISCLOSURES

Not FDIC or SiPC insured.

Forward-Looking Statements Disclosure and Disclosures:

In reviewing the information provided herein, we want to draw your attention to the possibility of encountering certain statements that should be approached with caution. While we strive for transparency and accuracy in all communications, there may be instances where statements are made that require careful consideration.

Specifically, we acknowledge the potential presence of statements regarding advantages in relationships and information, past successes, challenges, and industry positioning. These statements may not always be accompanied by specific examples, historical data, or detailed fund information. Additionally, there may be an emphasis on returns without sufficient discussion of associated risks or an overly optimistic view without adequate warning of potential downsides.

Furthermore, claims of industry leadership or excellence, such as being a ‘top auto repair franchise’ or a ‘leader in the industry,’ may be included without immediate substantiation. In the documents and communications pertaining to this offering, including but not limited to the prospectus, promotional materials, and public statements, the term “unique” is used to describe aspects of our products or services that we believe distinguish them from those offered by competitors. It is important for prospective investors to understand that “unique” refers to features, configurations, or attributes that we consider to be distinctive within the marketplace. However, this does not imply that similar features, configurations, or attributes do not exist elsewhere in the market, nor does it guarantee exclusivity in perpetuity.  The use of “unique” should not be construed as a statement or guarantee that the product or service possesses characteristics that are entirely unmatched globally or that no other product or service can replicate or approximate these characteristics. Investors are advised to conduct their own due diligence and review additional product documentation, market analysis, and competitor assessments provided in this offering to fully understand the context and scope of the term “unique” as used herein.

The Midas Fund CF, LLC is an independent entity and is not affiliated with, endorsed by, or in any way associated with Midas Fund, which trades under the ticker symbol MIDSX and can be found online at www.midasfunds.com. Any references to “Midas Fund” within the context of The Midas Fund CF, LLC’s operations, communications, or marketing materials pertain solely to The Midas Fund CF, LLC and should not be interpreted as relating to the Midas Fund (MIDSX) or its associated web presence.

The Midas Fund CF, LLC is an independent entity and is not affiliated with, endorsed by, or in any way associated with Midas International Corporation, which can be found online at www.midas.com.

Any references to “Midas” within the context of The Midas Fund CF, LLC’s operations, communications, or marketing materials pertain solely to The Midas Fund CF, LLC and should not be interpreted as relating to Midas® or its associated web presence.

This communication may also contain forward-looking statements that are subject to risks and uncertainties, including but not limited to those relating to future performance, industry trends, and market conditions. These statements are based on current expectations, assumptions, and projections and may involve inherent risks and uncertainties that could cause actual results to differ materially from those anticipated. We caution readers not to place undue reliance on these forward-looking statements, as they speak only as of the date of this communication. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

As a responsible provider of information, we urge all stakeholders to exercise due diligence and critical thinking when assessing the content provided. While we endeavor to present accurate and relevant information, it’s essential to recognize that forward-looking statements inherently involve uncertainties and risks that could cause actual results to differ materially from those expressed or implied.

Therefore, we encourage you to consider the context of each statement, seek additional information where necessary, and consult with appropriate professionals before making any decisions based on the information provided herein.

Your understanding and cautious approach to the information presented are greatly appreciated as we continue to strive for transparency and accountability in all our communications.

Past Performance and Future Results Disclaimer: TheMidasFundCF.com wishes to remind investors that past performance of our investment strategies and individual loans is not indicative of future results. Each investment opportunity we present carries its unique set of risks and potential rewards, and historical data should not be relied upon as a predictor of future performance.

Risks Associated with Business Loans: Investments in business loans through TheMidasFundCF are inherently risky. These risks include, but are not limited to, the potential default by borrowers. Loan agreements are legal documents that carry obligations and rights for both parties, and it is essential for investors to understand these documents thoroughly before committing capital. While we conduct due diligence to assess the creditworthiness of borrowers, we cannot guarantee the performance of our loans.

Risk Factors and Fund Strategies: Our fund strategies are designed to balance risk and reward, but it is important for investors to recognize that all investments come with the risk of loss. Specific risk factors may include market volatility, economic downturns, changes in interest rates, and other external events that can affect the performance of business loans. We encourage investors to review these risk factors carefully when considering an investment.

Diversification Disclaimer: Diversification is a key element of risk management; however, it does not ensure a profit or protect against loss in declining markets. Investors should be aware that diversification alone does not remove all risk from investing. In our offering documents and associated materials, including the prospectus and marketing collateral, the term “diversification” is used to characterize the business model of certain potential clients. This term is intended to describe strategies employed by these clients to mitigate risks and enhance potential returns through the distribution of business activities across multiple products, services, geographic regions, or customer segments.  It is important for investors to understand that “diversification” in this context does not guarantee business success or profitability. While diversification can potentially reduce exposure to single-market volatility or sector-specific downturns, it cannot eliminate the risk of loss. The effectiveness of a diversification strategy in a business context depends on factors including market conditions, competitive dynamics, and managerial execution.  Investors are advised to consider the specific details of the diversification strategies employed by our potential clients as outlined in this offering. Additional research and consultation with financial and business advisors are recommended to fully assess the viability and implications of these strategies within the broader market and economic environment.

Leverage Risks: The use of leverage within TheMidasFundCF’s investment strategies can amplify both gains and losses. Leverage involves borrowing capital to enhance the potential return of an investment. While this can lead to increased returns, it also increases the potential for significant losses, especially in volatile or declining markets.

Balanced Risk Disclosure: We strive to present a balanced view of investment opportunities, highlighting both the potential rewards and risks. It is critical for investors to understand that investments are not guaranteed and that achieving expected returns is not assured. Market conditions, borrower performance, and other factors can influence the outcome of any investment.

Investment Risk Disclaimer: Investing in business loans and other financial instruments involves a high degree of risk, including the possible loss of principal. Investors should consider their financial capability to bear the risks of investment, including the potential loss of their investment. We recommend consulting with a financial advisor to ensure that any investment aligns with your financial goals and risk tolerance.

Conclusion: By investing with TheMidasFundCF.com, you acknowledge and accept the risks associated with business loan investments and other financial instruments. It is our goal to manage these risks through careful strategy and diligent oversight, but it is important for investors to perform their own due diligence and fully understand the risks involved.

This disclosure does not encompass all the risks associated with investing and is meant for informational purposes only. Investors should conduct their own research or consult with a financial advisor before making investment decisions.

PRIVATE PLACEMENT MEMORANDUM

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