Sometimes the finance available in the lending market is not sufficient and there may be instances when an investor is required to provide a capital injection into a business or a project in order for it to progress. This may be classed as more of an equity investment than a joint venture.
Aureum Finance work with a range of investors that are involved in business and property, many are looking to invest in companies or individual opportunities where providing risk capital means they can achieve a greater return or a profit share.
Usually bank funding is sought at a competitive cost and then this will leave an equity requirement that the developer would need to provide for the project. If you have an opportunity but do not have enough equity, we can source equity investment to help secure your project. This would likely be in the form of a shareholding in the Special Purpose Vehicle limited company or preferred equity shares that will provide a return to investors once the banks have been repaid.
We can assist when you are seeking investment into your business over and above the standard finance in the market. This can be a large capital injection to grow your team or invest in equipment and premises. It may also be that by obtaining an equity investment, you will also receive guidance and expertise from the investor that could help the business grow to the next level. The investment is usually made into the company and a shareholding is required.
On many occasions the equity provider may offer all of the equity required to undertake the development however, there may be a small element required from the developer.
Remember that Aureum Finance will be alongside you throughout the process and will be on hand to review documents or answer any questions you may have.
Some key requirements for Equity Investments;
– Experienced Business Owner or Property Developers
– Business Plan for the investment
– New build or conversion projects
– Multiple unit developments
– Individual residential unit values of under £1m each
– Commercial and mixed-use schemes can be considered
– Planning permission in place
– Locations throughout the UK with good connectivity
– Guarantees required for cost and interest overruns