SOURCING FINANCE, Advent UK Limited, www.advent-uk.com

1. Sourcing
Finance
SOURCING FINANCE
www.advent-uk.com 1
www.advent-uk.com Slide n°

2. Sourcing
Finance
Eur opean businesses are regularly seeking funding
for their expansion and their projects;
Increasingly these projects involve cross-border aspects
involving two or more currencies.
Entrepreneurs seek creative solutions in the complex
financial markets to access the funds that will secure
their development.
Advent UK is perfectly positioned to source financing for
your company or project.
We will source the most suitable funding, organise and
accompany meetings and follow up with interested
parties, and at contract stage will recommend a suitable
International law firm and assist to final contract.
www.advent-uk.com Slide n° 2

3. Contents
Sourcing finance - > slide n° 4
Preparation of your financial requirements - > slide n° 5
Prime Banks - > slide n° 6
Investment funds - > slide n° 7
Private equity & venture capital funds - > slide n° 8
Construction finance & property investment - > slide n° 9
Legal & fiscal questions for international property investment
- > slide n° 10
Your presentation requirement - > slide n° 11
Investors’ requirements - > slide n° 12
Representation in the city of London - > slide n° 13
Contacts - > slide n° 14
www.advent-uk.com Slide n° 3

4. Sourcing
Finance
Advent UK has a strong network of
International Banks, Financial Institutions,
Investment Funds, Private Equity Capital, Venture
Capitalists, International lawyers, International
Accountancy and Audit firms, Tax planners and
Fiscalists in Europe.
Our clients are European companies and
entrepreneurs, with a special focus on Great
Britain, France, Russia and the CIS countries.
We source tailor made Western funding for your
company or project, negotiate your financial
business relationship with Western investors/
lenders, and accompany you to contract.
We will sign an agreement with you to cover our
overheads during the sourcing/negotiating
period and a success fee on completion of
funding.
www.advent-uk.com Slide n° 4

5. Preparation of your
investment requirements
You will need to supply your company profile and
your project with the funding requirement. We will
establish together if the requirement is:
Debt Finance or Project Finance (banks)
Investment Funds
Private Equity
Venture Capital
Joint Venture with a suitable partner
You will need:
Business plan showing:
A full project description
Financial requirements with drawdown schedule
Own funds invested, guarantees, security
Capital & interest payback cash flow projections
Equity proposition and relevant exit policy for the
private equity or joint venture investor
www.advent-uk.com Slide n° 5

6. Prime banks
Pr ofile of lenders:
Prime banks are potential lenders for corporate
lending (debt finance) and/or project finance with the
period of the loan and the interest rates to be decided
according to different factors. Sometimes the banks
will syndicate large loans with other investors, and they
expect the project owners to have invested over 25%
into the project.
They will look for guarantees against finance which
could be guarantees by the City Administration, by
another prime bank, mortgage on property owned by
the borrower, mortgage on landsite for construction
finance, options on shares in the corporate structure of
the borrower, and sometimes other guarantee
requirements.
www.advent-uk.com Slide n° 6

7. Investment
funds
These funds invest in companies and in projects
well defined and properly managed. Same
applications as above, they will take shares and
expect to take profit from the share value increase,
the revenues, and the capital appreciation of the
project.
Investment funds invest in established companies
and in projects that are well defined and properly
managed. These funds have a clear investment
strategy, a track record to sustain, and full
transparency to their shareholders, frequently
institutional.
Same applications as for prime banks, they will take
shares and expect to profit from the growth of the
share value, the revenues, and the capital
appreciation of the company or project.
www.advent-uk.com Slide n° 7

8. Private Equity
&
Venture Capital Funds
These funds invest in companies by taking equity, or
projects held by companies. They expect to take a
profit with an agreed clear exit policy (selling to an end
client) within 3-5 years, selling to an identified
purchaser or to go AIM/IPO on the London Stock
Exchange.
Note on construction finance (also comes under project
finance)
There are different investors interested in the property
and construction market in most countries showing an
annual let of over 10%; most are looking at either
purchasing an existing Class A building fully let on long
leases to prime tenants, or funding a Class A
construction project to purchase at term when fully let.
www.advent-uk.com Slide n° 8

9. Construction finance
&
property investment
Ther e are construction project lenders; mostly prime
banks & investment groups. They expect the borrower to
have proven experience in the construction market place,
to have a first class project with feasibility study, to be
able to supply guarantees on the finished buildings and
have a clear exit policy on final ownership.
There are different strategic property investors interested in
the property and construction market in most countries
showing an annual let of over 10%; most are looking at either
purchasing an existing Class A building fully let on long
leases to prime tenants, or forward funding a Class A
construction project to purchase at term when fully let.
There are British construction companies, European
construction companies expanding into new markets,
many with their own financial partners, These companies
are looking for joint venture opportunities, or to buy
specified office blocks, commercial centers, logistics
centers or hotels.
There are also European and British end users such as
supermarket groups, hotel groups etc. looking for property
opportunities, some of these groups have their own
funding.
www.advent-uk.com Slide n° 9

10. Legal & fiscal questions
for
international property investment
We need to confirm the legal and fiscal position
for foreign investors in the property market. Here is a
sample of questions to be addressed:
Who owns the land, freehold or leasehold under what
terms?
What are we buying, an existing building or the right to
construct, permits granted for what type of building?
Will the building be freehold or lease under what terms?
Will the foreign purchasing company/person have to
register a local company for the purchase transaction?
Local corporate taxes, registration for VAT etc? Are
there tax breaks for foreign investors?
Can we sell the building and the land to any form of
buyer, local or foreign? Profit tax and other local taxes?
Can we lease to any form of lessee and under what
terms? What taxes payable?
Can the invested money be re-patriated under what
terms?
www.advent-uk.com Slide n° 10

11. Your presentation
requirement
Thi s preparation will require all of the first 6 on the list
below:
1. Company profile (project owner) and corporate
mission statement.
2. Legal company registration documents, statutes, full
transparency on shareholding, management, licences,
accounts & audits (profit & loss sheets over 3 years),
accountability and reporting procedures between
management and shareholding.
3. Company activity, CVs of main directors, market sector
analysis, company market share, market potential .
4. Current turnover & profitability, productivity/
production rate and growth.
5. Clear description of the project requiring funding
showing current status of the project, current investment
by project owner, investment requirements and timetable.
6. Business plan & investment requirement showing own
funds, security/guarantees, and payback timetable with
cash flow projections. For Private Equity & Venture Capital
you should show a clear exit policy, usually within 3 to 7
years by re-purchase of stock by management, (MBO), sale
to another company, refinance, or listing on stock
exchange (either AIM or IPO).
www.advent-uk.com Slide n° 11

12. Investors’
requirements
Invest ors will also expect to see the following at the
negotiations stage:
7. Production policy (if industrial) of equipment, future
purchasing/leasing of equipment and/or technology
including IT systems, quality control, international quality
standards on production, guarantees, returns/complaints
policy.
8. Marketing team, sales and distribution, brand
awareness and loyalty, advertising and public relations,
sales and promotion policy, regional network/sales
representation and their control.
9. Financial management and investment strategy, current
bank loans and interest rates, current foreign investment
and interest rates, invested equity capital, corporate bonds,
credit rating, insurance policies, accounting standards
(consolidated accounts within a group?), audit standards.
10. Strategic management and C.V.s of main management,
vision on mergers or acquisitions, development and growth
plans, training human resources schemes, corporate loyalty
and future plans.
www.advent-uk.com Slide n° 12

13. Representation
in the city of London
We would be happy to help you establish a representation in
the heart of the City of London. This will entail registering a
British legal entity domiciled in London (please ask for
further details), and there are two forms that can be
considered to start with:
A Private Limited Liability Company (LTD.) with a modest
capital that can act as a Private Investment Company, and if
the original founders hold 51% of the shareholding they
become the effective owners; there is no minority blocking
share proportion. It can receive funds against shareholding,
and act as the project carrier. It can raise its capital with a
simple Board Resolution.
A British Offshore International Business Corporation for
example in Gibraltar or the British Virgin Islands with a very
low tax regime, and can also act as the project carrier.
Both these companies can invest in shares, equity, property,
obtain leverage deals, and partake in many forms of loans
and borrowings.
www.advent-uk.com Slide n° 13

14. Contacts
Our team are ready to discuss your funding needs. Please
contact:
Patricia Goodenough – President –
pg@advent-uk.com
Sergey Kazantsev – Director Russian and CIS countries –
sk@advent-uk.com
Ian Leapingwell - Development Director Great Britain –
il@advent-uk.com
Michel Lubac – Marketing Director France –
ml@advent-uk.com
Offices :
In Great Britain : ADVENT UK LTD, Suite 8, 28 old Brompton Road
LONDON SW7 3SS - ENGLAND
Tel. : +44 207 801 3080
Fax : +44 207 691 7969
In France : ADVENT UK LTD, 15 rue Clément Bayard
92300 LEVALLOIS - FRANCE
Tel. : +33 1 47 48 91 97
Fax : +33 1 47 48 02 22
www.advent-uk.com Slide n° 14