Investment Principles (cont.)
Alignment of Interest
An alignment of the economic interests of the shareholders and management takes place by incentive models, equity participation as well as by appropriate contractual provisions with orientation on (individual) performance, results and finally the increase of the enterprise value.
Restructuring of Financing
As far as possible the financing becomes restructured by the use of applicable financing forms (bank loans, leasing, factoring, asset backed securities, structured finance, mezzanine etc.) in terms of an optimization of a favorable and flexible financing.
Typical Investment Structures
The average investment period averages out - depending on the special situation and exit opportunities - by 2-5 years. All investments are based on the required target return for investors.
In exceptional cases investments can also be entered into together with other co-investors as a “teamed purchase”.