The Club Deal consists of a small number of investing members who decide to come together to acquire shares and stakes in a company.
In particular, it is about a financial operation between a small number of investors of Private Equity that come together for the acquisition or financing of a target, generally of significant value, on which they would not be able to invest on their own, also reducing risks.
Joining a Club Deal means being part of a select group that in addition to investing a part of its assets can contribute to the development of the real economy.
A club agreement, in finance, refers to a leveraged buyout or other private equity investment that involves two or more private equity firms. It can also be referred to as a consortium investment.
To join of a Club Deal it is essential to contact financial companies that do they deal with real estate investments and financing.
Such companies of they deal with selecting new investment opportunities, which they can be represented by the purchase of shares in companies particularly innovative newly established or from the financing of projects that require significant financial resources.
Once located a target with excellent development and profit potential occurs the interest of investors and the financial structure is determined, the amount of capital necessary for the operation and the conditions of the latter.
Identified the various subjects interested in the investment, a newco or a company is formed which deals with the acquisition of shares, their management and representing the partners and their interests on the boards of administration of the investee company or any another type of project in which the entrusted capitals have been allocated.
NewCo members operate through deliberate decisions in assembly.
The latter is called upon to comment on each operation which concerns the management of the investment, its disposal and has powers of control over the governance of the financed company.
Finally, partners are entitled to the distribution of the profits deriving from the conditions from the investment on the basis of the newco’s statute.
- Guarantee of return on invested capital.
- Annual remuneration agreed by the board of directors at the company membership deed.
- Profit sharing.
- Alternative solution to investment in government bonds / restricted deposit accounts in Italy.
- Immediate access to credit with digitalization of systems.
- Speed of operations in the various stages.