Investment Principles (cont.)
Growth and Turnaround Financing
INDUC does not finance operating losses. An infusion of new capital ("fresh money") in a distressed situation only serves to overcome the crisis situation (turnaround financing) as well as the following further development of the company (growth financing in capex, working capital etc.).
The objective of the infusion of fresh money is always a strengthening of the operating cash flow. As a basic principle liquidity will not be provided to replace existing bank or other financing (no "exchange in passiva"). The company as well as the financing are becoming again by the turnaround.
Collaterals like loan guarantees, letter of comfort etc. for the benefit of portfolio companies can not be provided due to the structure.
Predetermined Investment Concepts
Investments take place based on concepts which provide even in a conservative scenario defined minimum target returns.