SARR Fund overview
The SARR Fund (Stable and Recurring Revenue Fund) is a Luxembourg-based investment vehicle focused on financing European companies with predictable subscription-based revenues. Instead of providing traditional loans or taking equity, SARR purchases future recurring revenue streams over short durations (typically 6–12 months) at a discount.
This model allows Ledgity to generate stable, repeatable, non-cyclical yield — independent from token incentives or speculative market cycles.
Why SARR Fits Ledgity’s Yield Model
Short Duration (6–12 months)
Predictable cash flow cycles, supports flexible withdrawal liquidity
Recurring subscription revenues
Revenue streams with historically high payment reliability
Super senior claim structure
Repaid before banks, equity holders, and even the company itself
Real-time transparency
Underwriting based on bank, accounting, and subscriber data
No equity, no traditional debt
Cash flow purchase model reduces default + refinancing risk
In simple terms: SARR finances companies the moment revenue is earned, not based on hoped-for future growth. Which means yield comes from real activity, not projection or speculation.
How the Yield Is Generated
SARR identifies European businesses with stable subscription revenue.
It purchases 6–12 months of future subscriber payments at a discount.
Subscribers continue paying monthly → payments are automatically collected.
The difference between purchase price and collected revenue = yield.
→ This is not lending. → This is not revenue-based financing dependent on future growth. → This is cash-flow acquisition on existing, proven, stable revenue.
Risk Mitigation Framework
SARR reduces risk structurally (not just statistically).
Full data transparency
Real-time access to bank data, accounting, and subscriber analytics
Collateral selection (LTV ≤ 30%)
Only the highest-quality subscriber cohorts are used as collateral
Super-senior repayment
SARR is paid before banks, creditors, and the company
Automatic repayment sweeps
Monthly revenue is requisitioned before reaching the company
Diversified portfolio
Exposure is spread across many companies and sectors
This model has been deployed across 1,000+ financings, representing €500M+ of revenue secured to date with no recorded capital loss events. (Source: SARR Fund Performance Summary) ▶SARR – Stable And Recurring Re…
Why SARR Is Not “RBF”, Not Private Credit, and Not Factoring
Revenue-Based Financing (RBF)
Performance depends on growth
SARR purchases stable existing revenue streams
Private Credit
Exposure to company solvency and leverage
SARR receives cash before debt holders or banks
Factoring
Counterparty relies on invoice payers
SARR selects best-paying subscribers, not invoices
→ SARR is effectively a new asset class made possible by:
Open Banking (real-time bank + accounting data)
Subscription business models (predictable revenue dynamics)
Role of SARR in Ledgity Yield
SARR Fund (~80%)
Core stable real yield source
DeFi secured strategies (~15%)
On-chain flexibility + composability
Liquidity Buffer (~5%)
Fast withdrawals and safety margin
This allows Ledgity to deliver:
Stable target yield (~9% APY)
Predictable liquidity cycles
Risk-controlled exposure
Full transparency (on-chain + off-chain reporting)
In Summary
SARR enables Ledgity to deliver real yield that is:
Uncorrelated to crypto market cycles
Independent of inflationary token incentives
Anchored in recurring business revenues
Backed by institutional-grade underwriting and transparency
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