Corporate Finance Division
Timber Company Venture Capital
Timb investments offer many attractive benefits to institutional investors including (but not limited to): portfolio diversification (low volatility and correlation to other major asset classes), attractive risk/return profile, serving as an inflation hedge and a solid cash flow potential.
The renewable nature of this asset class and its positive role in carbon sequestration provide good investment opportunities for those investors that place socially responsible investment (SRI) and mitigation of climate change high on their agendas.
Institutional timber investments are spreading from the United States to Europe, Latin America and Asia, and even Africa. At the same time the underlying markets are quickly diversifying to encompass bioenergy and environmental services in addition to timber, thus creating new, attractive opportunities.
Fostering Growth without Diluting Equity:
For Timber companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Synergy Capital Markets, not only do we understand the industries of our portfolio Timber companies, but we also understand the growth process - and occasionally the growing pains - they undergo.
When venture debt is used appropriately, we believe entrepreneurs gain the following benefits:
Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing
Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation
Retain a larger ownership stake in the company prior to an IPO or other liquidity event
Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly