As an alternative to engaging Innovative Ventures, investor staff can pick and choose market niches, clients and deal structures to develop the investment strategy. But trial and error have high opportunity costs that result in a portfolio of investments and structures that limit upside gain and amplify downside risk.
Investors’ caution to these risks results in low or a lack of deal turnover, and increased costs with few results. This is the problem that plagued the European Commission’s Pan-European cash flow, unsecured, project-financing scheme for early stage technology firms; financing customers’ purchase of technology with cost savings from advanced mfging being the return of capital + profit for subsidizing customer purchases
IVI delivered solutions that eluded experienced bankers for 18 months, and a budget of €5MM. Our expertise overcame the mandate that only European firms provide advisory services to the EC, and the Director General approved the engagement of USA based IVI.
We improved bankers’ productivity and deal-making skills several ways:
- Redefined client profiles for investments domiciled in Belgium, Denmark, Greece, Italy and the UK. Designed the deal structure to better satisfy IRR, risk and liquidity criteria
- Specified the investment process to standardize and reduce transaction costs
- Educated 12 banking groups in solutions to securitize unsecured investments. IVI’s ‘Silent Lien®’ creates the investment safe haven demanded by investors, yet satisfies the EU mandate that hard assets remain unsecured so entrepreneurs can access debt and greater amounts of capital than normally available to them
- Assisted bank portfolio managers in the negotiating strategy that gain entrepreneur agreement to the terms and conditions of investment including the ‘Silent Lien.®’ Coached staff in securing investment approvals from their banks’ investment committees
Recipients of these solutions include these banking groups:
- National Westminster, London
- AIB, Dublin
- Unibank, København
- Générale de Banque S.A., Bruxelles
- Finlombarda S.p.A., Milan
- Hellenic Industrial Development Bank, Athens
“Consider IVI as your investment advisor and partner in planning and executing international private equity schemes. We can help you avoid the learning curve costs that skilled investors inadvertently incur when executing new investment programs.”