IRVINE, CA — October 6, 2025 — EON Reality today announced the launch of SkillBuild SPV, a groundbreaking financing model that empowers lenders and financial anchors to underwrite workforce capacity with the same confidence as infrastructure investments. By combining contracted, multi-payer inflows, real collateral, and trustee-managed cash controls, SkillBuild SPV creates bankable, region-scale vehicles that unlock upfront funding for XR labs, Virtual Campus licenses, immersive content, mobile labs, and train-the-trainer programs—all without adding debt to college balance sheets.
This innovative structure redefines educational infrastructure finance, ensuring sustainable, scalable access to immersive learning ecosystems that power the workforce of the future.
Underwriting Thesis (the one-pager you can tape to your monitor)
Asset: Regional training capacity delivered via EON Virtual Campus (Generic → Premium) with verifiable, performance-based assessment.
Credit Logic: Diversified contracted inflows (employer offtake, WIOA/ETPL tuition, outcomes payments, targeted grants) repay a ring-fenced SPV that owns equipment, licenses, and contracts; senior lenders are protected by collateral, covenants, reserves, and step-in rights.
Who lends: private credit (large vehicles), CDFIs/community banks (regional), impact/PRI first-loss, and catalytic public funds; employers/EPCs may anchor via prepaid seats or LOCs.
Security Package (why this prices like essential-service project finance)
- Contracted Revenues (Primary): take-or-pay seat blocks; WIOA ITAs (ETPL-approved); outcomes contracts tied to placement/retention triggers—all assignable.
- Hard Assets (Secondary): XR devices, mobile labs, simulators; escrowed software licenses—UCC-perfected.
- Credit Enhancements: employer LOCs/escrows; first-loss philanthropic capital; subordinated public grants; optional insurance wraps.
- Cash Controls: all inflows to trustee accounts; DSRA 6–12 months; waterfall prioritizes debt service before ops or distributions.
- Step-In Rights: replace operator; assume employer/college contracts; control licenses/labs to ensure continuity and recoverability
Result: Investors are repaid first, automatically and predictably; credit is tied to contracts and assets, not corporate balance sheets.
Cash Inflows & Waterfall (how dollars move)
Inflows (diversified by design): employer offtake; WIOA/ETPL tuition; outcomes payments (placement, 12-mo retention); targeted grants/sponsorships. Trustee applies waterfall: O&M reserve → Debt service (interest, principal; DSRA maintenance) → Program ops → Performance reserves/subordinate returns → Excess per covenants. Quarterly packs report utilization, pass/retention, placements, wage lift, and DSCR.
Capital Stack Archetypes (choose per region/size)
- Senior Debt (target DSCR ≥1.20–1.35×): private credit for $25–100M vehicles; CDFIs/community banks for $2–15M.
- Subordinated/Catalytic: outcomes contracts and state/federal grants to reduce leverage and pre-fund reserves.
- First-Loss/PRI: philanthropy to absorb early volatility and unlock cheaper senior pricing.
- Quasi-Enhancers: employer seat blocks, LOCs/escrows, and ETPL eligibility enabling predictable ITA routing.
Illustrative $30M Regional SPV – Sources/Uses & Inflows: Senior $18M; Subordinated grants $7M; First-loss $3M; Employer advances $2M → Devices/mobile labs $8M; Licenses/content $7M; Train-the-trainer $4M; Working capital $3M; DSRA & O&M reserves $5M; Costs/contingency $3M. Annualized inflows base case $19M (e.g., $9M offtake, $5M ITAs, $3M outcomes, $2M grants).
Diligence Checklist (ready-to-close package)
- Contracts: employer offtake (assignability confirmed), outcomes agreements, ETPL approvals & ITA routing docs.
- Collateral: asset lists (devices/licenses), escrow instructions, UCC filings.
- Covenants & Triggers: minimum utilization; placement/retention thresholds; DSCR; reporting cadence; permitted debt; step-in.
- Finance Ops: draw schedule; waterfall account structure; reserve policy.
- QA & Reporting: integrity/psychometrics; quarterly lender packs (utilization, placements, DSCR).
Timeline to First Cohorts (≤ 90 days)
- Days 0–15 — Commit & light up: Employer LOIs & draft offtake; Generic Virtual Campus live; strands defined.
- Days 16–45 — Localize & contract: Premium modules from SOPs; faculty approve-to-deploy; draft offtake/outcomes/MOUs; diligence room populated (waterfall, reserves, assets, dashboards).
- Days 46–90 — Close & launch: Close SPV (senior + catalytic + first-loss); stage devices/mobile labs; run train-the-trainer; start first cohorts and publish dashboards.
Case Example: Northern Virginia Security Stack (illustrative)
Employer contracts: AWS + Dominion 1,000 seats/yr → ~$15M. ETPL ITAs: $3–5M/yr. Outcomes contract: $2M/yr. Hard assets: ~$2M. Enhancers: $3M DOL grant + $1M first-loss. Cash controls: escrow + 12-month DSRA. Step-in: lenders can reassign contracts if needed. Outcome: even if a stream falters, others continue—and lenders retain control of assets and contracts.
Risk Register (and why continuity holds)
- Utilization dips: activate waitlist; shift-friendly cohorts; redeploy mobile labs across adjacent counties.
- Grant/ITA timing: rely on liquidity reserve; staged draws; first-loss bridge.
- Placement underperformance: micro-modules via Course Genius; tighten employer-specific assessments; strengthen career services.
- Tech refresh: device-agnostic stack; scheduled refresh from O&M reserve.
Lender remedies and trustee governance (board + independent trustee + program auditor) provide covenanted continuity and transparent KPIs (utilization, placements, wage uplift, DSCR).
Comparison: Traditional Education Lending vs. SkillBuild SPV (Project-Finance Model)
| Dimension | Traditional Education Lending | SkillBuild SPV Project Finance |
| Borrower | College or corporate | Ring-fenced SPV (not the college) |
| Repayment Source | Tuition; soft covenants | Contracted multi-payer inflows (offtake, ITAs, outcomes, grants) |
| Security | Limited pledge of tuition/collateral | Receivables + devices/licenses + DSRA + step-in |
| Cash Controls | Departmental budgeting | Trustee waterfall with reserve policy & triggers |
| Evidence of Output | Enrollment/completion reports | Performance telemetry + oral defenses (Integrity Suite) |
| Schedule Risk | Subject to academic procurement cycles | Finance-first close; cohorts ≤90 days; cadence monthly/bi-monthly |
Citations: borrower/structure; inflows & waterfall; security & DSRA; integrity evidence; timeline/cadence.
What Success Looks Like (lender’s scorecard)
- Predictable DSCR and reserve coverage at the SPV level.
- Seat utilization ≥85%, placement ≤90 days, 12-month retention, wage uplift (and associated outcomes receipts).
- Audit-grade evidence from Virtual Campus integrity telemetry (assessments, oral defenses, SOP-alignment).
Call to Financial Anchors (next steps)
- Review stack & term sheet: confirm sources/uses, waterfall, covenants, DSCR bands, and reserve policy.
- Complete diligence: contract packs (offtake, outcomes), ETPL/ITA routing, asset lists, step-in provisions.
- Align capital layers & draws: senior + catalytic + first-loss; Draw 1–3 schedule mapped to deployment.
For a deeper dive intoEON SkillBuild, access the full white paper: EON SkillBuild SPV: Bankable Workforce Transformation for the AI Era
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About EON Reality
EON Reality is the world leader in AI-assisted Augmented and Virtual Reality-based knowledge transfer solutions for education and industry. With over 25 years of experience and a global presence across six continents, EON Reality has pioneered innovative technologies including the EON-XR platform, AI-powered learning frameworks, and immersive training solutions. The company is dedicated to making knowledge accessible worldwide through cutting-edge technology, serving millions of learners across educational institutions and enterprises globally. For more information, visit www.eonreality.com
