What is the difference between mezzanine capital and private equity?
At Trustvolt, mezzanine capital is a convertible loan with an IPO discount: you lend to Trustvolt and receive ongoing interest; at an IPO you can convert into shares at a discount. With private equity, meaning company shares, you are a co-owner and share in value growth and distributions. The loan ranks ahead of the shares; the shares have the greater value potential.
What happens if there is no IPO?
The convertible loan (mezzanine capital) is repaid as set out in the prospectus. Company shares (private equity) remain in place but can then be sold only to a limited extent. An IPO is not certain.
What is the return?
Mezzanine capital pays 2.7 to 3.2% interest a quarter, or 10.8 to 12.8% a year, and at the IPO you convert at a 20% discount. Across both forms of investment, the target return is 8 to 14% a year. The terms in the prospectus are binding; target returns are forecasts, not guarantees.
What is the minimum investment?
Mezzanine capital from €5,000. For private equity and larger amounts we discuss the options individually.
What happens after the call?
We send you the prospectus and all documents. You take the time you need, ask your questions and then decide.
What are the risks?
As with any investment in a company: delays, cost increases, market and regulatory risks. The capital is tied up for the long term, and a total loss is possible. The full description is in the prospectus.