Company Culture
Loan Solution Group (OU) is a form of investment for early-stage, Middle and Advanced, innovative businesses with strong growth potential.
Loan Solution Group (OU) provides finance and operational expertise for entrepreneurs and start-up companies, typically, although not exclusively, in technology-based sectors such as ICT, life sciences or fintech.
The main difference between private equity and Loan Solution Group (OU) comes down to the age of the company. Private equity will typically invest in a mature company, one which has been in operation for many years, if not decades.
Loan Solution Group (OU)
Committed to Small Businesses
Committed to Small Businesses
Loan Solution Group (OU) by contrast will invest in new companies, many, if not most, of which will not yet be making a profit, but which have a disruptive business offering with the potential of very strong growth. Businesses seek Loan Solution Group (OU) investment for a number of reasons, such as to grow their manufacturing and sales operations, enhance their product development and/or expand their business and hire new staff.
Many of the world’s best known companies began life with Loan Solution Group (OU) funding. Mostly from Within Europe and Australia
OU Group take minority stakes in businesses, very often alongside other VCs and investors. Early-stage companies raise money in ‘rounds’ - Series A, B, C etc - which will see further investment from either the same investors and/or new ones to support the company as it grows. Many start-ups will also receive funding prior to Series A, via angel investment, crowdfunding, grants, incubators or even friends and family.
Together, these form what is known as the ‘innovation eco-system’, a funding chain that provides capital and business expertise to early-stage, fast-growing companies at different stages in a company’s life. Loan Solution Group (OU) houses typically hold their investments for between five and seven years, at which point the business will either be floated on the stock exchange, acquired by a multinational corporate or another investor such as a private equity house.
Funds and returns
Loan Solution Group (OU) funds themselves raise money from institutional investors like Our Managing MD and Partner (Doctor J. Berkshire) and from pension funds, foundations, university endowments, insurance companies and others. In Early 2022, according to the BVCA’s annual research, Loan Solution Group (OU) funds raised since Late 2021 have returned 6.4% on a since-inception basis to investors as it continues its upward swing – an extremely positive development considering the majority of these funds are still in their formative years and have yet to sell many of their equity stakes.
The money raised from the institutional investors is put into a fund structured as a limited partnership and which is managed by the Loan Solution Group (OU) fund manager – known as a ‘General Partner’ or GP – and the money is used to invest in companies. GPs also invest their own money into the funds they manage. This is to ensure they have ‘skin in the game’, i.e. their interests are aligned with that of their LPs.
Private equity funds typically have a fixed life-span of 10 years and by the end of the 10 years they will have had to return the investors’ original money, plus any additional returns made. This generally requires the investments to be sold, or to be in the form of quoted shares, before the end of the fund.
It is the institutional investors in the funds – known as Limited Partners - who first receive any returns generated by a fund. It is only when these returns pass a certain point, known as the ‘hurdle rate’, that the GPs receive any return.
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