Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Sat Feb 04, 2012, 19:14 GMT +2
Home Financing a business Equity financing

Equity financing

Equity financing is an alternative to debt financing and is basically an acquisition of funds by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation.

A company can finance equity through:

  • Private equity companies financed by institutional investors (such as investment banks, funds etc) and private investors. There is a wide array of private equity types and styles and the term ‘private equity' has varying connotations in different countries. Among them are:

    • Venture Capital (also known as VC or Venture) is a type of private equity capital typically provided to early-stage, high-potential growth companies. Generally, VC fund investors accept a higher risk of failure than is normally the case for other more conservative investments.

    • Mezzanine capital is a broad financial term that refers to unsecured, high-yield, subordinate debt or preferred stock. Mezzanine capital represents an intermediary between equity and debt in a company's balance sheet.

  • Initial Public Offering (IPO) also referred to as a "public offering" or "flotation," is when a company issues common stock or shares to the public for the first time. The money paid for the new shares to the company will be used for new investments, lessening the loan burden etc. The initial public offering is usually followed by listing the company's shares on the stock exchange: http://www.nasdaqomxbaltic.com

    • First North Baltic is an alternative marketplace for small growth companies, providing a wealth of opportunities on the Baltic financial markets. First North is a part of NASDAQ OMX Nordic Exchange: http://firstnorth.nasdaqomxbaltic.com/?lang=en

 

The list of institutional investors in Estonia:

Account operators

Avaron Asset Management AS - http://www.avaroncapital.com
Hansa Investeerimisfondid AS - http://www.swedbank.ee
Kawe Kapital AS - http://www.kawe.ee
LHV Varahaldus AS - http://www.lhv.ee
SEB Ühispanga Fondid AS - http://www.seb.ee/fondid
Trigon Alternative Funds AS - http://www.trigoncapital.com
Trigon Funds AS - http://www.trigoncapital.com
ERGO Varahalduse AS - http://www.ergofondid.ee
Sampo Baltic Asset Management AS - http://www.sampo.ee
IPS "Hansa Fondi" AS
EVLI Fund Management Company Ltd
East Capital Asset Management AB


Investment companies

KIT Finance Europe - http://www.kfe.ee
GILD Financial Advisory Services AS - http://www.gildbankers.com
Evli Securities AS - http://www.evli.com/pub/web/EE/ee/index
CRESCO VÄÄRTPABERITE AS - http://www.cresco.ee
Lõhmus, Haavel & Viisemann AS - http://www.lhv.ee
AS Trigon Securities - http://www.trigoncapital.com
East Capital Asset Management AB - http://www.eastcapital.com
Privanet Eesti
T. Rowe Price Global Investment Services Limited
Redgate Capital http://www.redgatecapital.eu/


Investment banks

United Partners Group - http://www.unitedpartners.ee/
AS Trigon Capital - http://www.trigoncapital.com
Evli Securities AS - http://www.evli.com/pub/web/EE/ee/index
Nordic Financial Services - http://www.nordicfinancial.com
Cresco AS - http://www.cresco.ee
Redgate Capital http://www.redgatecapital.eu/
Nordic CF Advisory http://www.nordicadvisory.com


Venture Capital

Ambient Sound Investments OÜ - http://www.asi.ee
MTVP AS - http://www.mtvp.ee
BaltCap - http://www.baltcap.com
Baltics Small Equity Fund - http://www.bsef.ee
Redgate Capital http://www.redgatecapital.eu/

Private Equity

Alta Capital Partners - http://www.altacapital.ee
BaltCap - http://www.baltcap.com
Redgate Capital http://www.redgatecapital.eu/


Real Estate Investors

Eften Capital - http://www.eften.ee
AS Eastern Europe Real Estate Investment Trust - http://www.eereit.ee
Metro Capital Management AS - http://www.metrocapital.eu
IPC Real Estate AS - http://www.ipcinvestment.com
Redgate Capital http://www.redgatecapital.eu/
Trigon Property Advisors - http://www.trigoncapital.com


Mezzanine Financing

Balti-Ameerika Ettevõtlusfond
Hanseatic Capital - http://www.hanseaticcapital.net/
Baltic Mezzanine - http://www.balticmezzanine.ee

Last Updated on Wednesday, 05 October 2011 13:03
Estonian Investment and Trade Agency
Free investment tips
  • Estonian economic trends
  • Investment climate
  • Law changes
  • Business tips
Enter your email address:

Partners
Estonian Investment and Trade Agency
Feedback
Would you recommend Investinestonia.com to other potential investors?