As a general rule, EKARPEN manages an investment volume ranging from €10M to €40M, for operations valued at €25M up to €400M, a limit that could be raised in leveraged buyouts. Also, investments from €5M can be channelled into small-sized projects.
As a financial partner, the corporation generally holds a minority share in the business projects in which it makes investments. As a rule, this share ranges between 10 and 40% of the capital stock with voting rights.
The investment period –and, therefore, divestment decisions– is based mainly on the return on invested capital in time, and depends on the invested capital, the characteristics and prospects of each business project (development stage, positioning, size, etc.). In general, the investment period is six to eight years.
Investment is made preferably by means of capital increase, but there is also the chance of resorting to convertible loan stock, whose profits include a fixed type plus a variable type bound to business performance, or even a mixed type.
