Private equity (PE) is medium to long-term finance provided in return for an equity stake in a company. The objective of the PE company is to enhance the value of a company in order to achieve a successful exit (i.e. sale).
Traditum takes a bespoke and flexible approach to investing and is uniquely positioned in the PE landscape to enable investments across our key sectors that qualify for Business Property Relief (BPR) and can be passed onto future generations free from inheritance tax. The team also favours investments under the Enterprise Investment Scheme (EIS), which rewards investors in these companies by reducing their risk of investment. The availability of these tax reliefs is subject to the continued eligibility of the investor and the investee companies.
We discuss the availability and structure of our capital with your Directors and relevant advisors. We have various capital structures that enable our investments to be tailored to suit any necessary change required of your current shareholding.
We specialise in offering capital growth that suits differing financing, economic, social and political situations. Our invested capital will combine with our presence on the board of Directors. This function is to assist with development and progress of the company and to provide information and feedback on our clients’ funds invested.
The main benefit of partnering with Traditum is the ability to accelerate growth while still continuing to hold a majority position in the company, without the need for a high interest bank loans or other expensive finance. Not only this, we have significant experience in the sectors we invest in, meaning business owners can leverage our experience to benefit their company. This experience also extends to people and processes meaning we might bring experienced talent into your business or have better knowledge of controls to help streamline processes.
A holding period is the timeframe in which a PE company will hold on to their investment. Unlike classic PE firms, where there is typically between three and seven years at which point the PE company will sell their stake, Traditum takes a much more flexible and longer term approach to backing growth.
We have no pre-determined investment return criteria. Our success for clients is born from our flexibility and common sense, not strict multiples of invested return or internal rates of return. Our strategy is run by fund managers, investment directors and corporate finance experts. We have decades of experience across a wide range of industries and understand the challenges of starting and managing businesses.
Traditum invests in unquoted companies in the UK. There is no established or ready market for trading their shares therefore you may not be able to exit your investment easily. Investing in unlisted companies carry higher risks than investments in quoted shares and you may not recover the full amount of money originally invested. Any investment through Traditum should be considered as a long-term investment. The availability of tax reliefs is subject to the eligibility of the investor and the investee companies and you should seek independent financial and tax advice before investing.
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Traditum deals in private equity investments which are high risk and highly illiquid. You should not consider our services unless you can afford to lock up your funds for a number of years and are prepared to bear the total loss of the investment.