Client Context
An established, profitable manufacturing and trading company incorporated in any jurisdiction. The business demonstrated strong performance but required external capital to scale production and launch new specific projects without diluting the founders’ ownership.
The Strategic Dilemma
The client faced a choice between selling equity or taking rigid bank loans:
1. Equity Dilution: Owners were not prepared to grant third-party investors influence over strategic decisions;
2. Rigidity of Debt: Standard loans lacked the flexibility needed for project-based expansion;
3. Risk of Direct Claims: The need to isolate the core operating business from direct legal relationships or potential claims from external investors.
We analyzed the capital requirements for the client's specific projects and expansion plans
We analyzed the capital requirements for the client’s specific projects and expansion plans.
Investor Profile: Target investors were classified as qualified investors (entry threshold from €125,000), demanding a transparent EU-regulated structure.
Jurisdictional Choice: Offshore structures were not considered, as they lack the necessary trust among European investors and complicate banking relationships.
The financing was structured through an Asset Management Company (AMC) acting as an intermediary vehicle between investors and the business.
Why Not Alternative Structures?
Why not a SICAV? A SICAV structure would impose fixed costs of approximately €7,000/month, regardless of activity. The AMC solution costs roughly €600/month, offering the same regulatory standing with significantly higher capital efficiency.
Expert Insight
By using an AMC, the business owners retain full operational control. Investors allocate capital to the AMC based on specific investment strategies, and the AMC finances the operating business or individual SPVs via intercompany loans with hybrid return models (fixed + performance-linked).
“The essence of investment management is the management of risks, not the management of returns.”— Benjamin Graham
The implemented structure delivered:
Structure: Czech AMC registered under Section 15 (ZISIF).
Architecture: Implementation of 2–3 distinct investment strategies with different risk profiles and time horizons.
Scalability: Use of SPVs for independent financing of distinct initiatives (e.g., real estate or production lines).
Economics: A hybrid compensation model (Management + Performance fees).
Time-to-Launch: 2 months from planning to operational status.
This structure is optimal for:
- Profitable businesses needing to finance specific projects without changing the shareholder’s table.
- Entrepreneurs who want to separate investment capital from their core operating assets.
- Developers or manufacturers launching new lines of business with external partners.
Regulatory Depth
The AMC is registered under Section 15 of the Czech ZISIF Act and operates under the supervision of the Czech National Bank (CNB).
Control: Strategic decisions remain within the AMC, with no external administrators or depositories required.
Flexibility: Allows for hybrid financing instruments, including convertible debt and performance-linked loans.
Compliance: Fully compliant with EU standards for professional management of qualified investors’ capital.
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Expand & Invest with our experts
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FinCzech. office:
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Alexander Yakimenka, LLMCo-Founder & Chief Executive Officer