Since our constitution, the financing granted by Redtrail Capital Partners is intended to cover any phases of developing a project.
Seed (Seed Financing)
Financing of the phases before starting the production and distribution of the product or service (prototypes, tests, market studies). The investment is usually small and is completed later once the viability of the project has been verified.
Start-up Financing
Financing the start of production and distribution in newly formed companies that are not yet generating profits. This phase usually has a long maturation period and often requires additional resources.
Expansion Financing
Companies are financed to grow in their market or access new products and/or markets. They need higher volumes of financing, but, in return, there is more information and less uncertainty.
Replacement
In this type of operation, Redtrail Capital Partners would finance in several tranches and aim to boost the business. It usually occurs in second or third generation family businesses. The first tranche would be to replace a group of generally passive shareholders, who only seek to maximize the dividend in the short term. In the second tranche, financing would be provided for the expansion of the company.
Leveraged Acquisitions
The purpose of leveraged acquisition is to acquire mature companies with proven track record and stable cash flows. In this type of transaction, a significant part of the transaction price is financed with debt.
Other Operations
We provide financing for other complex transactions including management buy-out, management buy-in, buy-in management buy-out and restructurations.
Typical steps in our transactions​
From the moment we receive an investment project until its final approval by the Board of Directors of Redtrail Capital Partners, several stages follow, and below we list the most significant:
First Contacts: Once the contact with Redtrail Capital Partners has started, a first analysis of the business plan of the company, the sector, and its management team is evaluated to decide whether to continue with the project study.
Analysis and Approval: In this phase, we get fully into the analysis of the project. We ask for historical and sector information if there is one; accounting, tax, commercial, and labor documentation; we delve into every detail of the business plan; We study what entry formula and type of financing could fit the company, and finally, the Redtrail Capital Partners will make a decision and inform the client.
Formalization of the Investment Agreement
Once the investment is approved, our legal department prepares the following documentation:
1. If we only contribute capital stock: capital increase deed, shareholders agreement.
2. If we grant a participative loan: Participative Loan Deed.
Tracing
Once the investment is made, we monitor the implementation of the approved business plan and its progress. We are present in those procedures and decisions in which we can add value.
