Equity Investments
We can also support your growth with equity capital. As a minority shareholder, we generate positive momentum for your business development and reputation. Our involvement is viewed positively by financing institutions, supervisory authorities and rating agencies.
Bonafide Investors can provide direct equity investments into companies or projects in the developing world which will have developmental impact or advance U.A.E. foreign policy. Equity investments can be highly developmental because of their ability to support early and growth-stage companies that would otherwise not be able to take on debt, especially companies in low and lower-middle income countries.
What we offer:
• Equity participation in the company in the country of investment
• As a rule with a minority stake
• Variable structuring of risk components
• In certain cases, voting rights and seat on the company’s supervisory board
• Clearly defined exit strategies
What are the potential benefits of equity investments?
- The main benefit from an equity investment is the possibility to increase the value of the principal amount invested. This comes in the form of capital gains and dividends.
- An equity fund offers investors a diversified investment option typically for a minimum initial investment amount.
- If an investor wanted to achieve the same level of diversification as an equity fund, it would require much more – and much more manual – capital investment.
- Investors may also be able to increase investment through rights shares, should a company wish to raise additional capital in equity markets.