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dc.titleThe Equity-Financed Enterprise: Sharing Uncertainty to Support Investment
dc.contributor.authorGalizia, Federico
dc.contributor.orgunitOffice of Risk Management
dc.date.available2017-05-23T00:00:00
dc.date.issue2017-04-16T00:00:00
dc.description.abstractThis essay takes a non-mainstream approach to small business finance and investment, with a particular focus on Europe. We advocate for banks to provide quasi-equity finance to support investment in uncertain environments. Quasi-equity, differently from debt, would absorb the downside for the entrepreneur and enable banks to profit from the upside that uncertainty creates. Combined with securitization, we see a possibility to enhance the role and profitability of the banking system, while at the same time launching a novel and potentially attractive asset class for investors.
dc.format.extent19
dc.identifier.doihttp://dx.doi.org/10.18235/0000693
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Equity-Financed-Enterprise-Sharing-Uncertainty-to-Support-Investment.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectEquity Investing
dc.subjectCredit Risk
dc.subjectNon-Sovereign Guaranteed Credit Risk
dc.subjectSmall Business Financing
dc.subjectEquity Investing
dc.subject.keywordsEquity-Financed Enterprise;Investment;Credit;small business finance;small business investment
dc.typeDiscussion Papers
idb.identifier.pubnumberDiscussion Papers
idb.operationN/A
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