(M€ 0.5 to 20 per transaction)
It is PROPARCO’s goal to use its equity and quasi-equity transactions and preferred exit strategies to contribute to the emergence and dynamism of financial markets.
PROPARCO always acquires minority investment stakes. After an average period of six years, and when the investee company has reached a sustainable level of maturity, these are intended to be sold either to other shareholders or on the financial market.
The types of financing vary and include :
- Equity and quasi-equity transactions in all forms permitted by company law and regulations: shareholder current accounts, convertible bonds/ notes, participating loans, subordinated loans
Investment funds: PROPARCO acquires stakes in the equity of national and regional investment funds which specialise in equity and quasi-equity financing. These funds may be based on a single country or a larger region, and may or may not be multi-sectoral. To assist with PROPARCO’s diversification strategy, it is acquiring stakes both in investment funds dedicated to venture capital and in investment funds that favour capital transfer and capital development