Investment needs
Private equity investment
You need to invest – we have the assets to invest in.
With private equity, you invest directly at the source of value creation and benefit from transparent corporate profits in the real economy.
Advantages of a private equity investment
- Compared to listed equity securities, private equity returns often perform better in the long term.
- A private equity investment is usually made in private companies whose management has more strategic freedom than that of listed companies.
- In the private equity business, investors and managers of the companies seeking capital align their interests.
- Compared to other asset classes, the price volatility of private equity investments is lower.
- Confidential information can also be used legally to reduce the risk of an interest in a company.
An investment form with a high return potential
Private equity is the off-market trading of equity shares in companies. Private equity investments thus enable the acquisition of equity stakes in companies that are not listed on stock exchanges, therefore representing the opposite of "public equity", i.e. investments in shares traded on the stock exchange. Private equity is often used by companies for expansion financing to implement further growth measures, for instance to open up new markets, create additional production capacities or develop new products. For investors, this increasingly popular alternative form of investment which promises the chance to participate in the success of up-and-coming, expanding companies – and as a result, attractive returns.
A private equity investor doesn’t receive interest, but participates directly in the results of the target companies as a co-owner. In a market economy, companies are the actual source of value creation, so with a private equity investment you’re involved at the genesis of added economic value.
Nordstein stands for promising private equity investments
Private equity offers investors the chance to acquire stakes in promising companies that are not (yet) accessible via stock exchange trading. This means an expansion of the investment universe to a segment of the corporate landscape that has enormous growth potential. For this reason, not just professional and institutional investors but increasingly wealthy private investors as well are using private equity investments as a return generating component in their portfolios.
At Nordstein, only investment projects that we ourselves assess as promising are considered for brokerage. Taking into account a particular investor’s personal risk propensity and capacity, we broker company shares primarily in attractive mid-stage ventures. At the same time, expert and comprehensive information for investors is at the heart of our brokerage activities. Our private equity boutique focuses on the promising biotech, pharmaceutical and medtech sectors.
Transaction process
In the event of interest in a private equity investment, we present companies looking for capital to potential investors that we consider promising, based on our internal assessment. In a one-on-one meeting, we present the interested party with detailed documentation on the target companies and provide information on the investment’s special features and opportunities/risks.
With direct investment via private equity, you acquire shares in the company in the amount of the investment made, in conjunction with voting and asset rights.