Oikocredit provides equity or quasi-equity (including convertible debt) tailored to meet the needs of each specific partner. We aim to have ownership stakes that are large enough to have meaningful influence over the enterprises in which we invest.
In most cases, Oikocredit's ownership position is in the range of 10% to 25%. We like to take an active role in the governance of investee companies, meaning that we usually like to hold a board seat.
The investment criteria for equity is similar to those for loans, with financial sustainability and development impact considered highly important. Intangible factors are also important, such as:
- management quality
- growth capacity
We believe that the combination of solid and improving financials, high development impact and good governance are the keys to success for our partners.