Segun Ogundipe

Plymouth, MA (USA)
Role(s):
Founder/Owner/Principal

ROSES

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Location: Plymouth
Industry: Finance
Year Founded: 2008
Number Employees: 1-10 people
Description: ROSES is a financial services and technology solutions corporation, and more specifically, a Special Purpose Corporation providing financial liquidity services to global investors worldwide. The corporation’s area of expertise is the innovative ROSESeries (TM) methodology, which is a patent-pending proprietary method and system for pooling, securitizing, and trading global dividend and interest tax reclaim assets worldwide. The corporation works with foreign government tax authorities, qualified tax advisors, and legal advisors to offer ROSES’ financial liquidity services to global investors through the company’s Special Purpose Vehicle (SPV) conduit. The SPV conduit purchases tax reclaim assets from global investors and securitizes these assets into ROSESeries Asset-Backed Securities (ABS) for further distribution in the capital market. ROSES’ conduit operations encompass a thorough understanding of the principles and conventions that govern double taxation treaties among foreign governments, thereby allowing ROSES to provide liquidity services to global investors on their tax reclaim assets. ROSES’ primary markets of operation are in matured jurisdictional tax markets: North America (US and Canada); European Union; UK; Switzerland; and Japan. Additional markets of operation include emerging jurisdictional tax markets: Greece; Ireland; Spain; etc. The business of providing financial liquidity services on tax reclaim assets represents the first and only business of its kind for this asset class. ROSES’ liquidity services are needed in order to address the current market challenges plaguing tax reclamation. These market challenges are creating several pain points for global investors, including: • Zero utility of tax reclaim assets and wasted time value of money – While tax reclaim assets remain in the treasuries of foreign government tax authorities, global investors have zero utility of tax reclaim assets and these assets are not adjusted for the time value of money. Otherwise, these assets may be used by global investors to fund current portfolio needs such as funding of pension benefits; reducing administrative costs; and pursuing of portfolio reinvestment opportunities in order to keep pace with the rate of inflation. • Expensive tax reclamation and administrative costs – The high fees associated with tax reclamation filings, effectively reduce the value of tax reclaim assets for global investors. Furthermore based on the lengthy tax reclamation period, it’s very expensive for global investors to maintain the administrative infrastructure necessary to manage the tax reclamation process. • Lengthy tax reclamation periods – Depending on the jurisdictional tax market, it could take anywhere from 6 months to 7+ years for global investors to collect on their filed tax reclaim assets. • Sub-par portfolio performance – Over-taxation of dividend and interest income effectively reduces the overall performance of portfolios as global investors do not receive the intended full benefit of their investments. Eventually when the tax reclaim assets are paid by foreign government tax authorities, the assets’ values are greatly reduced as a result of the abovementioned pain points. Global investors’ pain points regarding tax reclamation are worsened when compounded by the size and scope of the tax reclaim market. ROSES’ estimate for 2004 puts the tax reclaim market at over $161.57 billion annually; and this market is expected to grow with the natural expansion of the world’s financial market. ROSES’ estimates the tax reclaim market will expand to over $270.86 billion annually by the year 2010. The ROSESeries methodology for pooling, securitizing, and trading tax reclaim assets represents a tremendous business opportunity for ROSES with no existing competition in the marketplace. ROSESeries ABS would be of the highest investment grade with a default remoteness, which may be due in large part to the legal obligations of the concerned foreign governments who have signed various double taxation treaties on foreign-sourced income. As a result of the foreign governments’ legal obligations to double taxation treaties, ROSESeries ABS would provide capital market investors with default remote investment grade securities. Based on the 2004 and 2010 estimates for the size of the tax reclaim market, ROSES projects its annual revenue from operations to be in excess of $1 billion. ROSES may fund its business operations through private and capital market transactions. In addition, ROSES will comply with financial accounting standards (i.e. GAAP, FASB, etc) and with various financial regulatory bodies.