StoneCross Capital has created a Shari'ah-based longevity investment platform by combining expertise in Shari'ah-compliant investing and longevity assets. Their structured products provide downside protection, reduce volatility, and enhance returns while preserving principal. These products perform consistently because they are not dependent on a single asset class, but rather the non-correlating performance of bundled Shari'ah and longevity assets. The platform launches during market turmoil, allowing distressed asset acquisition. It can create financial products without direct exposure to any single asset, reducing dependency on any one performance. Potential applications include infrastructure projects through risk mitigation and total return investment products that offer principal protection with above average returns.

1. Stone Cross Capital Shari’ah Based Longevity Platform:
StoneCross Capital, LLC is the culmination of years of collaboration between the two
main principals who brought their respective expertise in their specialized field of finance
together to create a platform that could produce financial structures that would be an
attractive alternative to investments offered in the Islamic communities around the world.
By combining their areas of expertise in Shariah-compliant investing and Longevity,
StoneCross Capital has created a solution that can be used in multiple applications. From
a straight fixed-return product to a more elaborate Infrastructure financing tool,
StoneCross Capital’s structured products can help mitigate downside risk, reduce
volatility and enhance performance while preserving investor’s principal.
StoneCross Capital is able to meet these performance standards because our structured
products are not dependant upon the performance of a single asset class, but rather the
performance of two distinctly different assets that make up the combined return. We
bundle Shariah-compliant Assets with Longevity Assets and it is the stable, non-
correlating performance of the Longevity Assets that gives our product consistent results.
Launching our platform in this time of market turmoil is fortuitous as we have been
working on the structure for quite some time. The circumstances surrounding the world
banking credit/liquidity crisis has created huge opportunities to capture distressed assets
at historically low pricing levels. More importantly, the recent problems being
experienced in the Sukuk market can only testify to the strength of our platform and how
we approach our product design. We over collateralize our Shariah-compliant financial
structures with Longevity Assets and thus create a barrier of protection against the
possibility of non-performance by the underlying assets.
As an example, the Dubai World Nakheel Sukuk dislocation has affirmed our original
analysis that our Shariah-compliant platform can create financial products without linear
exposure and thus reduce the dependency upon the performance of a single asset class to
meet investor’s expectations.
Here are some applications that can be made using our Shariah-compliant platform;
Infrastructure Opportunities:
Private investors will invest in infrastructure projects if the risks can be mitigated. One
way to raise funds from private sources is to transfer some of the risks to third parties.
Risk mitigation instruments that can encourage private sector participation include
guarantees and insurance provided by governments, multilateral agencies, and private
firms. Whilst guarantees provide protection to creditors, insurance can assure payments
to investors (debt and equity) against certain specified dislocations in the marketplace.
Given the limited recourse financing of infrastructure projects, there is a need to ensure
and principally protect a stable revenue stream over the longer tenor.

2. (con’t)
The SCC Shari’ah Longevity Platform is based upon the concept of allocating a portion
of invested capital to provide a hedge, or insurance, against loss or total loss if a venture
is unsuccessful. The capital that is set aside is sometimes referred to as a sinking fund.
This sinking, or side fund, is invested in longevity products that offer a fixed and variable
rate of return that will enable this fund to eventually grow to an amount equal to the
original principal investment. In the past, structures utilizing this sinking fund concept
have invested these side funds in zero-coupon bonds and other conservative fixed
products. Although these strategies offer an attractive asset allocation model there are
several disadvantages. The first is if the fund is not structured or segregated properly it is
subject to bankruptcy or attack by creditors and it lacks tax favorable portability or
transferability for exchange or option purposes. Second, the investment products utilized
in the sinking fund either provide low yields to maturity or they are subject to current
taxes or accretion… all of which extend the time period of the fund to reach the required
or desired maturity value.
Total Return Investment Product Opportunities:
Our Shariah-compliant Structured Notes are low risk investment alternatives for investors
who seek principal protection with above average returns. We bundle Shariah-compliant
assets with longevity assets to produce a low correlating investment alternative to the
Sukuk market. The Shariah-Compliant Structured Notes are designed to deliver debt
type risk with equity like returns.