Invest in unlisted companies.
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• What is Bewater Funds?

  Bewater Funds provides the opportunity to invest in shares or other illiquid assets of a single unlisted company, in Spain or other OECD countries, through a Closed End Fund (CEF). The company is selected by Bewater Asset Management SGEIC, SA, team, hereinafter the Management Company. Additionally, shareholders of CEF can express the asset manager their interest in selling their shares though the website with a simple click.

  Bewater Funds is the commercial brand of Bewater Asset Management SGEIC of closed-end funds, SA.

• What problem does it solve?

  The shares of SL (limited liability) companies in Spain are illiquid by nature because they are subject to preferred shareholder rights of the partners, entailing tedious procedures and authorisations (waiver of pre-emptive rights, call for general Shareholders’ meeting, etc.),that reduce the number of potential buyers. If the shareholders of a SL allow their shares to be acquired by a third party, it indicates a high price or that they simply allow the third party to do the work in order to establish a current market price for the shares. Shareholders can subsequently use their pre-emptive rights to acquire the shares themselves. This usually involves liquidity discounts between 25 to 50% on the market price.

• How do we solve it?

  Bewater Funds incorporates a Closed End Fund (CEF) for each company in which it invests. The shares of the fund will be offered to investors, previously registered on the website, who can put forward an expression of interest for the quantity and price of shares they wish to acquire. Once purchased, can express their interest in selling their shares though the website with a simple click. This is done without the limitations of pre-emptive rights or the need to call a general shareholders meeting.

• Advantages for investors

  Investing through Bewater Funds has many advantages:

  • Pre-selection of companies by the asset manager, composed of a team that has invested in more than 50 private companies.
  • Follow up by the Asset Manager, who requires all SLs to have a shareholders agreement to protect the interests of minority shareholders.
  • Possibility of investing in a single fund, or diversifying through investments in multiple funds.
  • Shareholders of CEF can express their interest in selling their shares though the website with a simple click.
  • Commissions up to 74% lower than an average Spanish venture capital fund: Fees.
  • High level of skin in the game by the management team, who invest at least 20% of every fund at the incorporation

• How are companies selected?

  Bewater Funds has an investment policy published on bewaterfunds.com and available to all accredited investors on the website. Specifically, according to the following guidelines:

  1. Companies with high levels of growth that justify the existence of investment partners and at least 400,000 euros of sales in the last twelve months.
  2. A Shareholders Agreement that protects the interests of minority shareholders.
  3. Only companies that have sales of their products or services. It is not necessary for the company to have profits, but generally investments will be made in companies with positive cash flow or the ability to reach it with their existing cash.
  4. Companies with a valuation of less than 10x sales.
  5. Company stakes between 5% and 49%.
  6. Minimum investment is 300,000 euros.

  These requirements are established with the objective of improving the protection of minority shareholders, as well as establishing adequate governance in the companies in which the Funds managed by Bewater Asset Management invest.

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