Equity Participation Capital
Made available to investments in promising firms or projects with a
greater risk of loss than what is normally acceptable to traditional
lending institutions providing debt capital. Equity Capital can fill a
vital role in the growth of a company or specific project by
sophisticated investors who seek high returns, large profit margins, for
the risks taken.
Equity Capital Investors are highly sophisticated and will require a
thorough business plan with realistic expectations and solid financial
business or projects should have competent management within the
business or project without the use of outside contracted management
expertise, who could walk away from the project or management contract.
Equity participant investors may/will require either an active over-site in
the company or management as a condition of investment, or the
ability to replace management in the future, if needed. Usually these negotiated arrangements are dependent
upon the capital ratio between what the sponsor is willing to provide
when compared to the Equity Investor participation.
Examples of attractive investment projects are high growth potential, a defined
market niche, patent pending, or an advantage over competitors. The project/service
A revolutionary idea,
Evolutionary, in version or scope
Either a better or lower cost substitute product
A project or business in need of capital where debt financing has or
will fall short of the total capital need. At ("LEG") we provide structured capital arrangements using packaged combinations of
Debt--Equity--Mezzanine,or asset based combinations.
Note Worthy: Currently Equity Participants have shown strong interest in GREEN technology and sustainable projects.