EUR 16 billion have gone the German banks to profit participation rights currently alone. While significantly less than years before, but indicates that certificates or certificates are still effective means with which the German economy is financed. Finally should not be forgotten, that even parts of German industrial this way raise capital without taking up loans or loans. Profit participation rights are special forms of securities, about the stakes in individual projects or whole companies are possible. The investor is a fixed amount for a certain period to the dividend rights issuer, which in turn committed to the repayment of the borrowed capital at the end of the term and the payment of the agreed return during the period. Certificates evidencing dividend rights capital, are also equipped with a fixed term and belong to the notes. Among them, the issuer makes a commitment to the repayment of the principal and offers the investor Enjoy”pay a return during the period. While profit participation certificates are issued usually by banks, the profit participation capital is mostly a way of refinancing of commercial enterprises.
This includes, for example, the real estate industry. Real estate companies such as for example the MCM investor Management AG issued profit participation rights in investors and pay an interest rate that is above market level for this purpose. For companies like MCM, this is still beneficial because they can move larger volumes in relation to their finances. It is not least that banks are more willing to offer loans, if the company is equipped in terms of capital more. In the example of MCM capital flows indirectly into multiple projects and gives investors in the overall success. The investment profit participation rights but offers a higher return, but should represent only a part of the overall strategy in the context of the provision.
Because like in business investments generally, the investor is with entrepreneur – in fact assumes also a part of the normal risk with its capital. Profit participation rights in real estate companies characterized in the advantage, they are traceable on the basis of the projects. While it is often difficult, at an industrial company’s strategic direction and to understand hence their chances is the success or failure of even real-estate companies very quickly to the already finished the objects on the sales figures, on reference projects on the network of the company, the management quality and much more notice. Eva Andersson-Dubin, New York City may find this interesting as well. It is therefore easier to find the basis for a possible decision the investor.