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Private Equity Financing Services

Euro Credit is uniquely sensitive to the fact that many of its clients seek to unlock the trapped liquidity in their investment portfolios to take advantage of private equity investment opportunities, with good reason. We have formed relationships with private equity specialists that have in-depth knowledge and expertise to:
01
Compile and summarize information from companies that are seeking private equity funding to allow investors to make intelligent allocations of the liquidity that we facilitate;
02
Educate investors on their role as a partner or operator;
03
Balance a need for portfolio diversification with an investor’s interest in participating in the concentrated ownership of a private company;
04
Assist investors to incorporate private equity investments into multi-year and generational wealth planning;
05
Verify that liquidity is used for private equity investments backed by solid management teams and companies that have the requisite entrepreneurial mindset to survive and thrive in growing industries.

The Investor’s Role in Private Equity

Private equity investments typically follow a standard pattern.

First, the investor makes a capital commitment that obligates the investor to commit a certain amount of capital to a company or fund over a defined period, which is usually three to five years. That commitment is memorialized in a binding investment agreement. Given the risks of private equity investments, these opportunities are offered only to accredited investors. Euro Credit’s lending and financing services help the investor to satisfy these commitments.

Next, if the investment is made in conjunction with a fund, that fund's manager will make one or a series of capital calls against the aggregate sum in the fund if and when that manager has elected to make an investment in a private equity target company. The investor will then be obligated to respond to the funding call. If the investment is made directly with a company, the company might give the investor a drawdown schedule that defines when funds are to be paid over to the company.

Last, if the company succeeds with proper strategic planning and growth, the company pays distributions to the investor, possibly as a form of dividend income, but more frequently in the form of repayments that are made through an investment exit strategy.

 

Euro Credit's Financing Services and Private Equity Investments

Clients turn to Euro Credit for financing and lending services that are then converted into private equity investments through:

01
Shares in a Fund of Funds. Through our third-party network of independent or separately-licensed investment advisors, Euro Credit’s clients can access both single-country and international private partnerships that invest in private equities. The liquidity that we can unlock can be used to purchase shares in a fund of funds with lower initial investments and without compromising the diversity of an investment portfolio. Some investors might also seek a fund of fund investment as a hedge against portfolio risk.
02
Private Equity Exchange-Traded Funds (ETFs). ETF’s invest in publicly- traded companies which, in turn, invest in private equities. ETF shares are traded on stock exchanges. Many are actively-managed and, like the companies they invest in, their value is a function of the knowledge and abilities of their managers. Third-party investment advisors consult often assist clients to identify and select private equity fund ETF’s that correlate with the client’s investment plan and requirements.
03
Public Shares of Private Equity Managers. The independent advisors in our affiliate network identify and qualify managers that invest in a broad range of funds. Investors then use the liquid capital that we provide to limit risk and achieve better portfolio diversity. The downside of this strategy is that it can limit profits that might be realized when one specific fund generates substantial returns.
Euro Credit is a direct provider of certain specific services. Euro Credit reserves the right to refer inquiries for some services to third parties that are licensed or registered to provide those services where licensing or registration may be required by the laws of the applicable jurisdictions in which those services are offered. Euro Credit provides its services fully in accordance with applicable laws, rules, and regulations of all jurisdictions in which it conducts business or otherwise engages in transactions with contracting counterparts, either directly to the extent that an obligation, exemption, or exclusion for licensure applies, or otherwise through third-party licensees.