In Hessen, the Mittelständische Beteiligungsgesellschaft Hessen (MBG H) is a successful player in the private equity market. Their goal is to expand the equity base of entrepreneurs by providing silent participation capital without the companies giving up their entrepreneurial independence. The MBG H participation offer is primarily aimed at small and medium-sized companies with a turnover of up to 75 million euros. The Hessische Beteiligungsgesellschaft provides support for these companies in founding, in investments for the market launch of new products, business expansions and the restructuring or consolidating of their businesses as well as in MBO/MBI financing and follow-up regulations. The participation volume ranges from 5,000 euros for very low participations up to 1.5 million euros.
For entrepreneurs, using the equity capital is an interesting alternative to debt financing and does not require the provision of collateral. As a silent partner, the MBG H bears the full default risk. Thanks to this funding model, the economic equity base of the company is strengthened without selling shares. Furthermore, the company’s rating improves and it gains more leeway for additional credit financing.