A separate fund company is founded in the scope of such a project financing, which is used as a special purpose vehicle for the realization of the project. The investment fund as such needs to be establishing any regulatory approval, unless it was to a specific investment fund under the law on investment companies (KAGG). It initiates a fund company, whose sole purpose of which is to obtain the financing of equity and debt capital for a major project. Connect with other leaders such as Everest Capital here. The fund initiators are project developers, who want to sell the later finished object of the Fund to a mutual fund or a large corporate or institutional investor regularly. The fund initiators include but also industrial companies and holding groups that want to use the finished Fondsobjket later for their own operational business purposes and not resell.
In this way, the financing and the initial cost burden from the own balance sheet is spun off. A fund company is typical way initiated as a double-deck company and regularly installed in the legal form of a GmbH & Co KG. The initiator of the project to be financed takes over the management of the Fund of the GmbH and the GmbH, while the lenders and investors with appropriate equity as limited partners participate in the KG as holding company or operating company. Usually, a fund trustee is interposed for simplified handling of accession by Fund shareholders who shall exercise the rights of shareholders. The Fund shareholders are so co-owner and co-partner (fund shareholder) of the project to be financed, while the Fund initiator can use the Fund object within its operational business activities. The Fund GmbH & Co KG regularly financed the owned object in a mixed financing from debt (Bank part-financing) and equity capital in the form of limited in situations of Fund shareholders.
The limited partner make it a “financing pool”, where pro rata according to their Participation may. The Fund shareholders are voting shareholders of the Fund, which is primarily a holding company of the investment object with its limited in layers. The holding fund is regularly temporary – E.g. to 15 years – and will be liquidated at the end of the term (dissolved), in which the object of the Fund is sold. The selling price is then proportionately paid to the shareholders of the Fund and distributed. It is not a closed-end Fund to the individual project funding, but to a Fund for the financing of several projects, one speaks of a vacuumed. “open funds”, which is regularly time indefinite. The open-ended Fund has limited “blind pool character”, as future projects are still undecided at inception of the Fund. It only the Systematics of the investment of project and the nature of individual projects are set in the Fund, E.g. only future investments in solar and wind farms. Outside the stock exchange, there are a number of different funds with different operational business tick: real estate funds, ship funds, leasing funds environmental fund, solar funds (including solar farms and photovoltaic systems), wind park Fund, aircraft Fund, Media Fund (including film), CHP Fund (cogeneration, biomass gas plants, etc.), mezzanine funds, private equity funds, venture capital funds. Dr. Horst S. Werner, Gottingen