The financial structure varies depending on the project, market and conditions. While high leverage has benefits in terms of enhancing equity returns, it also has negative impact related to the cost of financial distress – high leverage means increasing the exposure of debt finance. However, we diligently conduct cost benefit analysis to determine our finance structure per venture. Depending on ventures circumstances, Tazweed injects equity directly into venture capital funds. In certain projects, Tazweed could use debt finance leveraging on its strong current and historical financial record. In the event of Project Finance Transactions and Consumer Industry Projects (depending on size), Tazweed would introduce co-investment approach by engaging equity funding throughout international and regional investment institutions and private equity firms. Our role is to target investment institutions and private equity firms  for lucrative business opportunities those secured by Tazweed, thus we work to select co-investment partners and take them to invest directly in the ventures presented. Typically, the co-investment is made into the venture capital fund that ultimately is transformed into a Special Purpose Vehicle owned by Tazweed and co-investment partners.

Our identified ventures could be interested to investment institutions and that for strictly financial reasons. Therefore, they expect financial benefits that are:

• Attractive risk-adjusted returns;
• Lower correlation to the returns their achieve from other asset classes;
• Benefit of active ownership;
• Diversification away from public markets;
• Gain access to lucrative projects;
• Gain access to highly skilled investment professionals with wide network where investment institutions will delegate to these professionals the responsibilities of structuring, managing and eventually liquidating the investments.