An investment that reflects some of the characteristics of shares but without your organisation offering up equity. Rather than paying back a set amount each month, your repayments are typically based on the performance of the organisation – such as profits or income. For example, you receive an investment of £50,000 and agree to pay the investor 2% of your annual income for 5 years.

When might I use it?

If you are an organisation that cannot sell shares, such as a charity or Company Limited by Guarantee but need an investment that you only repay if your business is successful. It may be more attractive to a social enterprise that cannot offer shares for whom a loan would be too risky. Quasi-equity potentially provides a more distributed sharing of risk and reward between investor and investee.                               

Where can I get it from?

Quasi-equity investments may be available from specialist social investors. 

Browse our investors and advisers page to view organisations offering quasi-equity products. 

Pros

  • You do not have to repay money you don't have

  • Investors may offer additional support as they only get their money back if you are successful

Cons

  • If your organisation is very successful you are likely to repay more through quasi-equity than you would if you took on a loan

  • Quasi-equity is not widely available as many investors believe these deals are too risky and too complicated to set up

More information