The Principal Structure Fund, Inc. (PSF) is a diversified, closed-end construction fund currently completing application to be listed on the American Stock Exchange. The Fund has elected to be treated as a Business Development Company (“BDC”) under the Investment Company Act of 1940, as amended (sometimes herein referred to as the “1940 Act”). PSF, a Nevada corporation, was organized in 2005 and commenced operations in 2007. A BDC is a company (either private and or public) which elects to become subject to sections 55 through 65 of the Investment Company Act of 1940. This election/conversion allows a company to pursue investments in new ventures as well as invest in portfolio companies using money raised from the public markets.
As required by the Investment Company Act of 1940, 70% of a Fund’s investments must be in “Eligible Investments”.
The Principal Structure Fund will target small and mid-size companies in four main categories within the sprawling and highly segmented construction industry. Category 1 would target construction companies which specialize in assisting property owners and insurance companies in the multibillion dollar a year catastrophic loss and recovery business; such as hurricane, fire, flood and severe storms that occur annually. The 2nd targeted category would focus on construction companies involved in the massive market in new construction of commercial and residential property.
The fast growing and multibillion dollar a year home improvement and remodeling market will be the 3rd category of focus for the fund. An immensely diverse arena involving an endless number of different types of specialty contractors, the fund will target only the best construction-remodeling and home improvement companies in their individual markets. Lastly, retrofitting will be the focus in category 4 for the Fund. An exploding industry due in large part to an aging population, construction-retrofit companies focus on adapting existing properties to meet the needs of the elderly, the handicapped or other special needs.
Seismic retrofitting and Hurricane retrofitting, both necessary to bring health care facilities of all types (hospitals and senior living facilities) into compliance with building codes and standards, represent more than a Two-Trillion Dollar opportunity.
Our goal is to make an initial investment in the low cost, high profit margin, Catastrophe Management sector. This sector offers a wide range of management services that are geared to provide the insurance industry with loss mitigation and restoration services. One target company in which we’re contemplating an investment handles projects ranging from small house fires to multi-million-dollar industrial and commercial losses.
Will be trading on the AMEX soon under PSF.