Equity Finance

1st Ethical are able to provide equity based finance, known as ‘musharaka’ to entrepreneurs requiring capital. In exchange for providing the finance, the investor purchases a share in the ownership of the business.

Our investors provide ‘risk capital’, which means that they are prepared to lose the investment funding if the business fails. Of course, we want to avoid that at all costs, so we make sure we research the business as thoroughly as possible. Once the investors make a decision to invest, they fully support the business, as the best way for them to maximise their return is to make sure that the business is a success.

Once the business is profitable, the investors will receive a share of the profits through dividend payments. If the entrepreneur wants to regain full ownership of the business, they are able to do so by buying back equity at the prevailing market value.

In addition to facilitating the introduction of the investor to the entrepreneur, 1st Ethical Musharaka provide legal, Shariah and tax planning advice (EIS), due diligence reports, and ongoing performance monitoring. All of these elements are essential to facilitating a successful long term relationship between the investor and entrepreneur.

We Do:

• Share in the risks & rewards (profits & losses) of the business.
• Support the business with advice, monitoring, guidance and expertise.
• Monitor the social responsibility of the business.
• Our best to make sure the business is a success.

• Provide loans as that would require the loan to be repaid with interest.
  The company disagrees with and avoids interest on ethical grounds.
• Invest in unethical sectors.
• Invest in businesses which we believe are unfeasible.

For more information, please email or contact our offices.