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Foreign Investors Private Placements Private Equity Joint Venture Partnerships
Foreign Investors Investors from the US, Europe, and Asia will find that investing in Canada will provide them with access to a stable economy in a currency that is more likely to preserve their standard of living. This is because the Canadian government has produced consistent surpluses for over a decade and also because Canada has one of the largest proven reserves of oil in the world. This is unlikely to result in a depreciating currency for the foreseeable future. Investors from outside North America will find that there are very few mature economies in which it makes overwhelming sense to invest. The European economies are suffering from anaemic growth, and the US is suffering from a depreciating currency. In Asia, Japan is still suffering from various banking scandals and the renewed threat of deflation. It is only in Canada where you have a government that is in surplus, an economy that is growing at a respectable rate for a mature and stable country and a currency that is not likely to depreciate. Furthermore, many of the opportunities that we are bringing to market in this context are extremely viable businesses. If you are an individual investor or institutional money-manager looking to own operating businesses or real estate, there are opportunities that you would do well to examine here at Ittihad.
Private Placements For accredited investors, we are bringing unique investment opportunities to the private market. These opportunities involve ownership in businesses that bring strong balance sheets, robust business plans and a unique value proposition in terms of their potential benefit to society. As investors ourselves, there is much we like about these firms. For investors, we are confident that they will want to examine these opportunities as they come up as well.
The firms we bring to market either have an excellent history and are expanding or are start-ups staffed by experienced and skilful people. All firms that we take to investors ourselves have passed our stringent financial and ethical criteria. Whether it is a non-toxic product that has potential to revolutionize a toxic industry or an investment in a real estate project, we are bringing to market opportunities that are unique. Indeed, in most cases we have exclusive arrangements with our corporate clients - such that these opportunities are unavailable anywhere else.
We regularly hold no-cost seminars at our offices and we encourage you to attend with both questions and your advisors. You can contact us at (416) 412 3999 to reserve seating.
Private Equity Private equity is one of the newer sub-fields in corporate finance. It is the ability of private investors (hence private equity), to come together privately, to create a fund or entity that will allow them to function as a larger buyer of active businesses. More simply, private equity structures or firms enhance investors’ abilities to buy substantial ownership stakes in companies. As owners, they are then able to refine the bought-out company’s strategic direction. Once improvements in management, cash flow and structure have been made, the private equity entity will then disburse of their share to someone else at a much higher price. This is sometimes done through an initial public offering (IPO) or by selling the firm to the firms’ management and / or to yet another private buyer who wants to make further improvements.
At Ittihad, we are creating a private equity fund that will invest in qualifying SME’s that will allow our investors to participate in this exciting area. The funds will be used for buying out targets that will have significant upside potential and are failing to realize their full value due to transitory factors. We have used this strategy and our expertise in this manner already for our parent firm’s shareholders, and some have enjoyed double digit annualized returns. While the details of this fund are still being finalized, we intend to make this fund open to both institutional and private investors, both local and non-Canadian.
If you are interested and qualified to be part of such an investment, it may be helpful for you to come out to our seminars and discuss the matter with us.
Joint Venture Partnerships Joint-venture partnerships are a very common arrangement within ‘Islamic’ finance. At Ittihad, these are simply business ventures in which more than one entity holds a stake. The arrangement could be between a person and Ittihad, between two partners that we have referred to each other, or even a venture in which many of our investors invest along with us. These financing structures are scalable and flexible. They would be appropriate for financing a venture as small as a trucking business with one truck, or a real estate or commercial enterprise worth many millions and with hundreds of shareholders.
For example, this kind of financing is also perfect for you if you are looking to own part of a franchise without managing it yourself. There are many capable managers who would like to own franchises but do not have all the capital required. Alternatively, you may have the capital but not the ability or inclination to manage the business. In such cases, you could become a joint partner and share profits with them in an equitable manner. Furthermore, for added security and management oversight, Ittihad would help define management objectives and provide ongoing oversight. This would keep the incentives of owners and management better aligned. It would also allow you to build up valuable relationships with motivated managers that you could count upon when considering expansions or other business opportunities.
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2007
Ittihad Securities Inc. All Rights Reserved. |
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