After receiving the necessary documents (application form and project presentation), our team will try to review your request as soon as possible, and leading experts will offer the best options for project funding.
We support companies and projects at all stages of the life cycle, helping to turn innovative solutions into successful business ventures.
Providing a full range of financial services, together with Spanish and international partners, we concentrate financial resources on projects with high growth potential.
We also focus on collaboration between business and science, helping to overcome the challenges of bringing innovative products and services to market.
We actively finance investment projects in the following industries:
• Energy sector, including renewable energy sources.
• Oil and gas sector, including the liquefied natural gas industry.
• Waste disposal and recycling, as well as WtE technologies.
• Wastewater treatment and desalination plants.
• Extraction and processing of minerals.
• Logistics and infrastructure.
• Agriculture.
• Industry.
By investing in your business, we strive to provide a positive impact on the environment, society and economy of a particular region. This is why our portfolio includes environmentally friendly facilities such as solar power plants, wind farms, waste treatment plants and water treatment plants.
Investing in each project, our experts evaluate the proposed technology, the professional level of the team, competitive advantages, the amount of investments, the market situation and prospects.
We work closely with numerous banks and investment funds in Spain and other EU countries, and also attract private investors from all over the world.
Are you planning a major project in Europe, the Middle East, East Asia, Africa or Latin America?
Interested in cheap funding sources?
Contact us and tell our experts about your business project. Along with project financing, we also provide engineering and technical services for the successful implementation of the project.
The role of investment funds in project financing
In addition to grants, businesses can obtain bank financing (loans) or project financing through equity participation.These funds are provided through specialized models under operating programs called financial instruments. Funds offered through financial instruments must be returned, which is an important difference from a grant.
Funding projects through these financial instruments in a global context ensures a more efficient use of resources compared to grants, since the funds provided are subject to return, reuse and mobilization of additional co-financing.
Investment funds are targeted at companies willing to share risks and rewards.
They are ideal tools for businesses that cannot access sufficient bank financing.
Mutual investment funds are an option through which young companies can finance a large project for future cash flows.
These funds are a kind of financial intermediaries that channel the resources of large investors to companies unable to finance their projects from traditional sources, such as bank loans.
To obtain funding from this source, a business will also need a well-structured and well-founded business plan. Young companies may need the support of an incubator or business accelerator to effectively present their project to private equity funds focused on venture capital.
The situation is different with existing companies that have a long operating history.
ESFC financial experts will conduct comprehensive studies of activity and assess the prospects of a specific project, offering their professional conclusions to the largest European investors.
Current requirements and rules for bank financing for credit institutions often restrict financing of projects that promise good returns, but have some risk. Some companies with a strong innovation focus are unable to meet the strict requirements of bank lending, although they have an original and promising idea.
Young companies, especially those that rely on innovative technologies or workflows, cannot get bank financing because of the risk, no matter how valuable their idea is.
Some projects, such as innovative solar power plants, biomass thermal power plants or geothermal plants, require a special approach to financing.
Meanwhile, renewable energies, waste recycling, water treatment and energy efficiency are now on the list of national priorities in many countries around the world. These areas contribute to the overall technological progress of the economy, opening up new markets, ensuring high-quality growth and saving natural resources.
The international company ESFC offers project financing through investment funds in Spain and other countries of the world, providing a reliable source of funds for your strategic plans.
From the point of view of recipient companies, financing a project by an investment fund ensures that funds are received on favorable terms (lower interest rates, lower collateral, a long financing period, favorable levels of risk) compared to bank lending.
The largest investment funds in the world
First emerging in Europe in the 19th century, investment funds over the past decades have become one of the most demanded sources of funds for the implementation of large projects in the energy sector, mining, logistics, industry and agriculture.Currently, investment funds are considered to be an excellent economic strategy allowing investors to earn money in the short, medium or long term, and this situation will depend on the type of investment fund chosen.
For potential clients, this is a unique opportunity to finance large innovative projects anywhere in the world.
It may sound incredible, but in 2019, the five largest investment funds in the world concentrated in their hands about $ 20 trillion. This is comparable to the GDP of the United States of America or 15 times the GDP of Spain.
According to recent research, BlackRock turned out to be the largest investment fund in 2019 with $ 6.96 trillion in assets under management. In fact, BlackRock is the world largest asset manager.
The second and third places in the ranking are occupied by the Vanguard Group and State Street Global Advisors, managing assets of $ 5.5 trillion and 2.8 trillion, respectively.
The top five are closed by investment funds with a long history of JP Morgan Chase ($ 2.78 trillion) and Fidelity Investments ($ 2.5 trillion).
Currently, American and European financial companies continue to be the global leaders in project financing, concentrating more than $ 80 trillion of investor funds in their hands.
Professional asset management and balanced financial policy make investment funds the leaders in trust both among investors and among clients implementing large projects with multi-billion dollar investments.
The main advantages of investment funds for business
Joint investment is based on the accumulation of free financial resources of individual investors.These resources are professionally managed using science-based asset management and risk minimization techniques.
The advantage of investment funds for business lies in the ease of attracting financing, even in cases where obtaining bank loans is problematic. This is a convenient option for companies that generate promising ideas and need to receive significant funds for future cash flows.
It is also the best choice for those willing to share risk and reward, regardless of project outcomes. If a company expects to fund its growth plans with investment funds, it must be prepared to share the dividend or profit. For example, private equity funds spend 5 to 15 years in a company, make it profitable, and then sell their stake to another investor.
The main advantages of investment funds over other financial instruments for potential investors and clients are as follows.
Table: The advantages of investment funds.
| Advantages for investors | Advantages for clients |
| Professional financial management. Small investors are not very familiar with the situation on the stock market, asset management, etc. Management companies can provide high profitability to investors of any level. | Cheap source of funding. Funds provided by an investment fund are usually provided at a lower interest rate than bank loans and other sources of funding. |
| Diversification of investments in stock market instruments. Investment funds greatly simplify investment risk management by diversifying investments. | Ease of receiving funds. Many investment funds, especially those specializing in startups (innovative companies), have minimum requirements for clients, in contrast to commercial banks. |
| Providing high liquidity. Typically, investment fund securities have a higher liquidity than primary securities. | Low collateral. Investment funds interested in an innovative business idea usually do not require high-value assets as collateral for the client's financial obligations. |
| Convenience. A private investor entrusts the maintenance of assets to a professional manager, which saves a lot of time. It is easy to buy and sell securities of investment funds both directly through the manager and through intermediaries who provide a wide range of services. | Long term financing. The term for financing projects through investment funds can sometimes exceed 15-20 years, which creates more favorable conditions for large capital-intensive projects. |
From the point of view of investors, the advantages of joint investment are potentially high profitability compared to traditional investment options, less time spent on managing investments, their high diversification and the possibility of prompt withdrawal of funds.
On the other hand, clients can get an affordable source of funds from an investment fund for large projects with minimal requirements for an applicant.
You can be convinced of the benefits of project financing with ESFC by contacting our team at any time.
