Many institutional investors only invest into listed public companies. A Pass Through Investment Structure is an ideal mechanism to fund certain private companies. The PassThrough Structure suits a company that has noteworthy management or proprietary assets, seeks to raise growth capital without selling a controlling interest, yet is not ready for a public stock market. The Pass Through Structure simply places a publicly traded company (“Pubco”) in the middle between an institutional investor and the private company and enables them to invest in and to use their global resources to support the private company. When a Pubco strategic partner is available, the PassThrough Structure is generally the least expensive form of financing because a strategic partner will always charge less than a financial investor. A strategic partner in most cases has a deeper understanding of the industry, the competition, the distribution channels, and the…

March 30th, 2010
Money maker
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