Direct equity investment
EBRD invests in equity and quasi-equity (preferred equity/subordinated debt), as well as being a provider of senior debt. Since inception, it has invested more than €15 billion of equity into over 800 companies, making it one of the largest equity investors in its region.
EBRD is primarily a minority investor providing private equity for growth stage companies, but it can invest in a range of other situations from pre-privatisation to Initial Public Offering (IPO), as well as working with private equity investors in change of control transactions.
- Preferred investment range between €20m and €100 million. Smaller investments can be considered, but are more likely to be structured as self-liquidating mezzanine finance
- EBRD’s equity shareholding usually in the range 15-35% for corporate sector deals, 5-15% for Financial Institutions/larger infrastructure investments.
- Preferred investment period is 4-7 years
- Flexible financing offer can include equity and quasi-equity (EBRD will not usually process a debt transaction at the same time as an equity transaction, but debt and equity exposure to the same company is possible)
- Clear prospect of exit through joint sale with other shareholders to a third party, or sale back to existing shareholders e.g. via put option
- Experienced sponsors and management with a proven track record
- Good prospects for the company in relevant local/regional markets
- Sound financial basis and well-structured financing plans
- A credible business plan
- Realistic entry valuation
- Willingness to share corporate governance including EBRD Board membership and a role for EBRD in key strategic decisions
- Realistic exit strategy that will provide a performance based return for the EBRD
- Prospective investment returns which are appropriate to equity and commercial risk
Director, Equity Partner
Tel: + 44 20 7338 8381