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stille Beteiligung

English translation: silent partnership

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:stille Beteiligung
English translation:silent partnership
Entered by: interpr8er
Options:
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18:53 Nov 4, 2008
German to English translations [PRO]
Bus/Financial - Law: Contract(s)
German term or phrase: stille Beteiligung
no context - what is it?
lmulter
United States
Local time: 14:59
silent partnership
Explanation:
http://www.verlagdrkovac.de/literatur/?kw=Silent Partnership...
http://www.max-planck-innovation.de/en/inventors_founders/fo...
What is a silent partnership:
"A silent partnership belongs to the so-called mezzanine financing instruments and has elements of both equity and loans. Under the terms of a silent partnership, a company is provided with capital for a longer period of usually about 7–12 years. The company has to pay interest and possibly profit-related compensation. So in principle, a silent partnership is similar to a long-term bank loan. However in contrast to a loan, a silent partnership is often subject to a subordination clause, so that, in the event of insolvency, all other creditors are paid preferentially to the silent partner – with an increased risk of a total loss. Hence the subordination clause gives the capital provided by the silent partner the status of equity despite its loan character. One should not overlook, however, that the silent partnership is accounted as a long-term liability, creating outstanding debts and the risk (without subordination clause) of an over-indebtedness on the balance sheet. As this financing instrument is not well known outside Germany, it may cause a problem when a company is in negotiation with foreign investors in later-stage financing rounds. Therefore, it is advantageous to arrange for a clause in the silent partnership agreement to enable it to be transformed into an equity agreement."
Selected response from:

interpr8er
Local time: 23:59
Grading comment
Thanks. I found it myself now.
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +4silent partnershipinterpr8er
4silent partnership
Nicholas Krivenko
3secret (sleeping, Br., dormant, silent, US) partnershipGWM123


  

Answers


5 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
secret (sleeping, Br., dormant, silent, US) partnership


Explanation:
Cf. Grosser Eichborn

GWM123
Local time: 23:59
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 8
Notes to answerer
Asker: It is silent partnership

Login to enter a peer comment (or grade)

5 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +4
silent partnership


Explanation:
http://www.verlagdrkovac.de/literatur/?kw=Silent Partnership...
http://www.max-planck-innovation.de/en/inventors_founders/fo...
What is a silent partnership:
"A silent partnership belongs to the so-called mezzanine financing instruments and has elements of both equity and loans. Under the terms of a silent partnership, a company is provided with capital for a longer period of usually about 7–12 years. The company has to pay interest and possibly profit-related compensation. So in principle, a silent partnership is similar to a long-term bank loan. However in contrast to a loan, a silent partnership is often subject to a subordination clause, so that, in the event of insolvency, all other creditors are paid preferentially to the silent partner – with an increased risk of a total loss. Hence the subordination clause gives the capital provided by the silent partner the status of equity despite its loan character. One should not overlook, however, that the silent partnership is accounted as a long-term liability, creating outstanding debts and the risk (without subordination clause) of an over-indebtedness on the balance sheet. As this financing instrument is not well known outside Germany, it may cause a problem when a company is in negotiation with foreign investors in later-stage financing rounds. Therefore, it is advantageous to arrange for a clause in the silent partnership agreement to enable it to be transformed into an equity agreement."

interpr8er
Local time: 23:59
Works in field
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in category: 4
Grading comment
Thanks. I found it myself now.

Peer comments on this answer (and responses from the answerer)
agree  Patrick Zumstein
1 min
  -> Thank you, Patrick!

agree  Nicholas Krivenko: My apologies. The page was displayed for too long I guess. I have not seen your answer.
3 mins
  -> No problem :-)! Thank you, Nicholas!

agree  TDfreelance
7 mins
  -> Thank you, TDfreelance!

agree  Inge Meinzer
8 mins
  -> Thank you, fineynegoddess!
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8 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
silent partnership


Explanation:
There are several types of silent partnership. It can be declared, i.e. Mr X is listed as a shareholder, but does not participate in the business' daily life. It can be undeclared, i.e. the beneficial owner is not the nominated owner. It can also be called a "SILENT SHAREHOLDING", whereby "silent" is the operative word.

Nicholas Krivenko
Ireland
Local time: 22:59
Specializes in field
Native speaker of: Native in GermanGerman, Native in EnglishEnglish
PRO pts in category: 8
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Non-PRO (2): writeaway, Lancashireman


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Changes made by editors
Nov 4, 2008 - Changes made by interpr8er:
Created KOG entryKudoZ term » KOG term


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