Private capital is funding that does not come from the state, the EU or a bank. The funder is an investor or a fund, and the terms are always agreed case by case. Below we explain the most common forms.
Private equity: capital in exchange for ownership
Private equity is equity funding. A private equity investor or fund invests in the company and receives a share of its ownership in return. The money is not repaid like a loan; the investor gains when the value of the company grows.
Private equity suits a company with a clear growth plan that benefits from the investor’s expertise and networks. The investor usually also joins the board, so choosing the right partner matters as much as the amount of money.
Private debt: loans from outside the banks
Private debt, also called private credit, is lending from outside the banks. The two terms mean the same thing. The loan comes from a fund or another investor, not from a bank.
Private debt is a fairly new asset class, but all the more useful for it. It helps when a bank’s collateral requirements do not fit the company’s situation. The owners keep their ownership, and the loan terms can be matched to the company’s cash flow. The flexibility has a price: the interest rate is usually higher than on a bank loan.
Fund contacts
We have contacts with private equity funds and investors. Once we know what your company needs, we present it to the funders it suits. You do not have to go round the funds yourself.
Our own investments
We also invest in promising companies ourselves.
Other forms of private capital
Business angels and venture capital suit early-stage growth companies in particular. Read more on the page Private investors.
Often the best solution combines grants, loans and capital. See Arranging funding.
