Funding for Commercial Property Investment
One of the many casualties of the subprime crisis has been the brake on bank lending. In most countries globally, banks and highstreet lenders are now very reluctant to release funds to borrowers. While just a short time ago, lenders were almost queuing up to offer clients mortgages and personal loans, private individuals and corporate entities are now finding it increasingly difficult to obtain finance for even small investment projects. For those looking for finance, particularly large-scale and/or for commercial property investment purposes, private equity funds offer an alternative means of obtaining capital.
For the individual investor, private equity funds may not be familiar, but they made their first main appearance on the world financial stage in 1946 when Georges Doriot, widely considered to be ‘the father of venture capitalism’, founded the American Research and Development Corporation (ARDC). Since then, private equity funds have established themselves as a main source of funding throughout the world. According to the European Private Equity and Venture Capital Association, private equity and venture capital funds have invested €270 billion in over 56,000 companies in Europe since 2000.
Private equity funds are established when a group of investors form a fund, which is then invested in a portfolio, often including property (commercial rather than residential). Investors come from a variety of backgrounds and typically include public pension funds, corporate pension funds, high net worth individuals, family offices and insurance companies. The investment period for the private equity fund generally lasts for a fixed period of 10 years, although many funds are extended for subsequent annual periods.
There are many benefits of using private equity funds as a means of financing a project or property development including access to long-term capital and an investment fixed within a framework of a negotiated contract. However, as Ken Thorkildsen, Director of Obelisk Private Finance, points out, perhaps the greatest advantage is that private equity allows the risks and profits to be shared between the fund and the borrower, something that is not an option with a loan from a bank or credit institution.
“An additional plus is also that the private equity fund may be able to assist with subsequent financing operations,” says Ken. “This is an important consideration for an entrepreneur or company with expansion plans for the future.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
For the individual investor, private equity funds may not be familiar, but they made their first main appearance on the world financial stage in 1946 when Georges Doriot, widely considered to be ‘the father of venture capitalism’, founded the American Research and Development Corporation (ARDC). Since then, private equity funds have established themselves as a main source of funding throughout the world. According to the European Private Equity and Venture Capital Association, private equity and venture capital funds have invested €270 billion in over 56,000 companies in Europe since 2000.
Private equity funds are established when a group of investors form a fund, which is then invested in a portfolio, often including property (commercial rather than residential). Investors come from a variety of backgrounds and typically include public pension funds, corporate pension funds, high net worth individuals, family offices and insurance companies. The investment period for the private equity fund generally lasts for a fixed period of 10 years, although many funds are extended for subsequent annual periods.
There are many benefits of using private equity funds as a means of financing a project or property development including access to long-term capital and an investment fixed within a framework of a negotiated contract. However, as Ken Thorkildsen, Director of Obelisk Private Finance, points out, perhaps the greatest advantage is that private equity allows the risks and profits to be shared between the fund and the borrower, something that is not an option with a loan from a bank or credit institution.
“An additional plus is also that the private equity fund may be able to assist with subsequent financing operations,” says Ken. “This is an important consideration for an entrepreneur or company with expansion plans for the future.”
For more information on overseas property investment and to find out about Obelisk's latest projects, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE).
Obelisk also produces its Absolute Guide Series which contains the most recent investment information on 30 of the world’s top emerging markets. They can be downloaded free of charge from at http://www.absoluteguideseries.com
Email: info@obeliskinternational.com or visit our website: http://www.obeliskinvestmentproperty.com
For press enquires, please contact Obelisk’s marketing department on (+34) 952 820 319 or email press@obeliskinternational.com
Labels: construction, equity, finance, funds, investment, private, property
posted by Alison Kane at 4:59 pm
0 Comments:
Post a Comment
<< Home