Debt investment

With debt investment, you loan money towards the funding of a project and a charge on the assets is held on your behalf. In return for lending the money, you become a creditor and receive a loan note or bond stating that the principal and interest on the debt will be repaid. The fixed target returns offered on debt will vary depending on the loan-to-value (LTV).

Key Features

  • Investments are primarily asset-backed with either debentures, security deeds with 1st charge or corporate guarantees
  • Fixed term investment
  • Interest and growth opportunities
  • Defined return and exit strategy

Equity investment

When you make an equity investment, you become a shareholder in the ownership of a company. Equity investor returns are not capped but can increase or decrease depending on the performance of the company. There is no fixed term for this type of investment.

   

Key Features

  • Own a share in the business
  • Variable returns based on company performance
  • Often seen as higher risk/higher potential return investments