By Equity kicker (to English equity = own capital funds and English kick = footstep, impact) one understands the possibility of the sharing at the entrepreneurial success. This can exist e.g. in the transformation of Mezzanine capital in own capital funds, thus a "“genuine"” participation. Likewise shareholdings are conceivable with a later stock exchange course desired. So the possibility is granted to outside capital givers, portions of the person or finance company which can be financed at a later time, often to special conditions of acquiring.

Goals

More favorable loan interest charges can be achieved by the risk-compensating effect by the variable, profit-dependent component, which the Equity kicker represents. Thus the current financing expenses of the enterprise are lowered. On the side of the financial sources the Equity kicker in the case of success of the enterprise (risen share quotation) leads to a increased net yield.

Virtual Equity kicker

Virtual Equity kicker is to the success of an enterprise bound, firmly agreed upon special payments, whose disbursement can be bound e.g. to the increase in value of an enterprise.

Non Equity kicker

With the Non Equity kicker is agreed upon apart from the interest a firm special payment, which the financial source at the end of the running time of the loan receives.

See also

• Optionsschein
• Conversion loan

Articles in category "Equity kicker"

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  Definition of Equity kicker in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Equity kicker