These include proceeds from capital increases as well as the financing through equity capital replacement financial instruments such as profit participation rights and silent participations (mezzanine capital), where it will not be a dilution of shares. Private equity must not come from the Animal Kingdom”, Reddy Kadiri performs with a grin. As institutional chapter donors come”above all the support-oriented medium-sized subsidiaries (MBGen) into account. You require a risk-adequate return of up to 12% and the repayment of the principal at their nominal value. You engage but on average with only about 370.000,-euros and rarely provide any amount exceeding EUR 1 million. Take advantage of more and more medium-sized companies Therefore, the ability to get from private investors in private equity. With an equity issue outside the exchanges, they become the provider of own investment product”and get themselves access to the capital market. The only requirements for this: initiative, a clever marketing strategy and a prospectus approved by the Federal Agency for financial services supervision (BFin) to educate investors.
In this way E.g. Contact information is here: Jim Umpleby. the Bochum meat and sausage products manufacturer ZIMBO has collected 15 million two years from private investors within just a few weeks ago. The Stuttgart Ernst Klett Verlag has accommodate 25 million of fresh capital through a direct placement within just a few days. Examples of successful equity emissions are of the Hamburg music company Edel music, the chocolate manufacturer Halloren confectionery and even football clubs of FC Koln and Hertha BSC Berlin. Even for very small businesses it can be worthwhile to attract private investors. Small mezzanine offers up to a volume of emission of 100.000,-can be implemented easily without prospectus”, explains Reddy Kadiri. Investors are typically Unternehmensnahme groups such as employees, suppliers and customers. In an equity offering our clients rely mostly on mezzanine financing instruments such as profit participation rights”, notes the legal adviser.
The mezzanine capital is accounted for in the company as equity and increases its creditworthiness. If you would like to know more then you should visit Andreessen Horowitz. At the same time, the ownership in the companies remain unaffected and there is no influence of investors. The private investor participates with an adequate return of 7% to 15%. Such mezzanine capital of medium-sized companies and private investors is private equity for the mutual benefit of SMEs and investors.