Private equity stands for the financing of usually unlisted companies by private and institutional investors. But not only newly founded companies, but also established companies that want to expand their business and open up new markets need capital that is provided by private equity. For all situations in the life of a company, private equity is an excellent opportunity to generate capital. For investors who invest in private equity funds, an attractive return is again the focus

Is the business object clearly limited and clearly defined?

Is the concept clearly understandable and economically coherent (profit intention)

Is the investor tied up unnecessarily long or can he easily transfer his share again or get out?

Has the entrepreneur committed to managing the company for a long period of time?

Is there effective control over the use of funds?

Is the trustee or appropriation controller suitable, ie independent, honorary professional or bank, not a natural individual?

Is there a catalog of actions requiring approval for the management, for example for borrowing?

Can the investor freely dispose of the proceeds from the start? So no automatic reinvestment or credit

Are the soft costs (non-value-adding expenses such as design, sales, administration, trustees) reasonable?

Does the investor bear the placement risk or is there a reversal option?

Is the agent exempted from liability as far as possible?

Control of the use of funds

The use of funds means the control of the use of funds by investors.

The IKV exercises control over the use of funds in relation to the investment contract for the investors. At the IKV, the capital providers' money is temporarily parked until certain prerequisites have been met. This use of funds control is intended to rule out that the initiator alone can have funds.