THE FUNDAMENTALS

The consequences of Basel II

Since the implementation of the Basel II rules mid-size companies have to give particular attention to their equity ratio. A high equity ratio provides an advantage in credit ratings and fewer credit costs.

What is Private Equity?

Private Equity is an instrument of capital financing. A private investor gives capital to a company. In addition, the investor supports the management in its strategic decisions and provides his entrepreneurial know-how and network.

Advantage for both sides

The investor actively contributes to the success of the company. On the one hand the investor profits from the development of the company, on the one hand he carries substantial financial risks. Investor and company have the same goal: sustainable increase of the economic success and added value of the company.

Long-term Partnership

Contrary to many prejudices a private equity company more often than not has an investment horizon of at least five years as an investor. This is conducive to a long-term collaboration which is not looking to achieve a quick profit regardless of the consequences. In this way sustainable growth is created which brings benefits for both the portfolio company and the private equity company.