A Club Deal offers the possibility to different investors to share the risk and / or combine the resources necessary for a specific investment. We invest in a company that we believe can increase in value in the medium-to-long term as result of the implementation of a clear industrial project.
The investment takes place directly in the company and not through blind-pool such as investment funds. The individual investor decides to invest in that particular company, in its history, in its people and in its specific prospects, and not generically in a category of financial assets.
The investment company and its original shareholders, who almost always continue to hold a significant share, can know in advance and appreciate those who will invest. Very often investors are themselves entrepreneurs and / or high profile professionals and, therefore potential contributors in developing a network of contacts and know-how.
Participating in a Club Deal means being part of a selected number of investors who all know each other, and share together the development and changes of the investee company over time.
Participants in a Club Deal naturally invest for obtaining a return from their capital, with a generally medium to long-term time-scale and a flexibility in how to achieve it.
As in all clubs, however, clear rules and defined roles must be established, for the benefit of both the investee company and investors.
Identifying, implementing and then managing a Club Deal operation over time, pursuing the alignment of interests among all participants, requires specific skills and expertise.
Canova has always thought in terms of the Club Deal.