Difficult position and worse conditions are difficult. The market for securitised mezzanine capital of German medium-sized companies, which had a three-year boom of the first programs in 2004, and the subprime crisis in 2007 and it totalled placed over 6 billion, occupies a crisis for a year. The subprime crisis had investors unsettled world, that ABS structures representing SME mezzanine, the investors no longer place were”, says Reddy Kadiri. Even if the investor market have sufficiently recovered the financing cost of mezzanine programmes for the companies involved are similar to which of the other mezzanine market. Interest rates for businesses last 6.3% belong here Past”. Companies continue to badly needed equity capital with success even on individual mezzanine while the companies that must participate in mezzanine programmes, waiting for the recovery of the securitisation market, obtain other medium-sized companies. Because even though many investors in ABS structured products currently not think most investors are still looking for attractive assets. To which undoubtedly also mezzanine capital for German SMEs.
As a mezzanine investors institutional investors such as commercial subsidiaries, the support-oriented medium-sized holding companies and individual mezzanine programmes of banks and savings banks considering come. But also a mezzanine equity emission, of the medium-sized company to a supplier of own investment product “that represents a real alternative. The contractor gives you even the access to the capital market. Target group of an equity issue are predominantly in addition to the business circles (E.g. employees) Private investors, as well as asset management. The business-side requirements: initiative and a professional placement strategy.
In this way, for example, the company ECO Schulte from Menden and even the 1 FC Cologne have financed in addition to the Emsdettener Haustechnik company TECE successfully. Just like when individual mezzanine financing of an institutional investor remuneration, maturity and capital service structure be in a mezzanine equity emission individually to the economic needs and strategic direction of the company, as well as the investors adjust”, Reddy Kadiri explains the advantages of individual mezzanine financing. The attempts of the mezzanine provider in the summer will show, whether the market for mezzanine securitisation has really recovered. Independent company of institutional and private investors of mezzanine capital can opens permanently a new source of funding. Posted by: Dr. Matthias Gadre