Assetization is a process of converting illiquid assets into tradable assets, through the issuance of financial instruments such as bonds or **, so that investors can obtain stable income. In the process of assetization, investment exit can be achieved in the following 5 ways:
The ultimate purpose of assetization is to realize assets and obtain capital returns. Therefore, when the cash flow in the asset pool reaches a certain size, it can be considered to give it to other investors. This is usually done through private markets, as participants in private markets are typically high-net-worth individuals or institutional investors;
2.Refinancing:If there are outstanding debts or other liabilities in the portfolio, they can be refinanced to convert them into tradable ** to repay the debt. This can be achieved by borrowing money from banks or other financial institutions, and then converting those loans into **;
3.M&A and restructuring:Assetization provides enterprises with new financing channels and opportunities for capital structure adjustment. If a company has multiple high-quality projects or business units, it can package them into an asset pool and give them to investors through assetization. This allows the company to receive more capital to develop new projects and acquire existing businesses;
4.IPO Listing:Some large asset pools may have high value and liquidity, and are eligible for an IPO. In this case, the company can consider listing it to attract more investors and gain a higher market capitalization. In this way, the company not only receives financial support, but also increases the company's visibility and brand image;
5.Repurchase Agreement:Assetization can also come in the form of a repurchase agreement. When the cash flow in the asset pool is insufficient to meet the needs of investors, a repurchase agreement can be signed with investors, agreeing to repurchase part or all of the shares in the asset pool at a certain point in time in the future. In this way, investors can recoup their investment early before the value of the asset pool falls, and the company receives additional financial support.
In short, assetization is a flexible way to exit investment, which can help investors maintain and increase the value of assets. The choice of assetization and investment exit through different ways can better adapt to different situations and environmental changes, so as to achieve better financial goals.