The financial world is constantly changing and recently undergoes a complete and true transformation. From time to time a new opportunity is born to her, alongside this, financial mechanics create complexity and new challenges, and for this, mind openness is required, knowledge, experience, and continuous learning. Global changes in the global economy and tomorrow’s opportunities are growing like mushrooms after the rain. And an experienced professional knows how to pick.
The global banking revolution is already here, the major banks in the world begun to internalize the changes and have started laying off thousands of employees worldwide. This represents about 25% to 35% of its total staff. The banking systems become a single service provider that holds all the means, into a narrower and leaner system that sometimes functions as a kind of pipeline for carrying out the transactions. Banks and financial institutions are experiencing news private systems sauce as Crowdfunding, social and P2P loans, FinTech technologies, non-bank loans, private equity, debt companies, and more. Stock exchanges and capital markets are changing, however, the global banking regulation is tight and complex, sometimes even increases regulatory oversight on the financing corporates. Moreover, the yield around zero on bank deposits for a very long term, which in fact sends investors and big money to the non-banking operation like Family office, Venture Capital funds, debt companies, Hedge Funds, and Privet Equity. The revolution in the financial industry is underway, to enjoy it requires spatial and holistic vision.
Funding and investments are essentially the same currency, in order for the bank to provide credit facility and loans to consumers, the public is required to deposit money. Companies and institutions will issue share stocks and bonds in the capital market and stock exchange, the investors must purchase and invest in those share stocks, bonds in order to provide to the issuing entity the credit and investments.
From recurring landslides such as 2008, and even because of the Coronavirus in 2020, there is a credit shortage worldwide. Due to a change in investment routing in the world, many new projects get stuck or not come to fruition, prices rise due to the shortage of goods and more.
Today, many entrepreneurs from a variety of disciplines apply to non-banking entities such as venture capital funds, hedge funds, private equity, debt capitalists, to get funding and raise equity/capital for their project, most of the entrepreneurs require funding solutions accompany A-Z.
As part of the risk management process, each entrepreneur is required for equity to have their project approved and meet funding criteria. Most of the entrepreneurs do not have the required equity, therefore they appeal to investors for loan or equity partner or to raise mezzanine leverage funding, some of the entrepreneurs go to underwriters to issue bonds in the stock exchange and more.
On the other side of the coin, most investors would prefer to deposit their money to a foundation that knows how to make due diligence, risk management, analysis and underwriting on the projects instead directly to the project, in most cases, the signal Investor does not have physical protection and collateral because the Senior debt entity takes the project lien, therefore the first role of the foundation is to secure the investor funds.
In reality, there are creative and structured solutions that are set up to reduce the risk to the investor’s investment fund, and on to get benefits as high yield as possible. Every investment has a risk component and should be defined, risks can be reduced and defined in a variety of options by financial instruments, financial insurance, assets, and more.
All of the protection components that exist in the international market actually belong to the wealth/asset management field where the investment base is secured, this method the solid investor who fears to lose his fortune or an investor who has made an exit and has taken risks in the past or a family that wants to preserve capital for future generations.
We invite you to contact us without obligation to get more in-depth information about the many opportunities the world gives and offers.
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