KGW InvestmentSIA

Funding inside one group, on written terms.

KGW Investment SIA is a holding company in Latvia. It invests its owners' capital in the companies of its own group and finances them through equity contributions and intragroup loans.

Owners own capital KGW Investment SIA Group company A Group company B Group company C equityintragroup loanequity + loan
Fig. 1. Money moves only between the owners, the holding and its own group companies. No third party's money enters this structure.

Despite the word "Investment" in our name

KGW Investment SIA does not provide investment services or investment advice, does not manage anyone else's money, and does not accept deposits, loans or investments from the public or from outside investors.

It is not a bank, an investment firm or a lender to the public, and it is not licensed or supervised by Latvijas Banka as one. Its activity is limited to its own group.

§ 1

Role of the company

Holding
Owns and oversees stakes in the companies of the group.
Equity
Strengthens group companies with capital contributions where long-term funding is needed.
Group loans
Lends to group companies under written agreements with a set purpose, rate and repayment schedule.
Oversight
Tracks repayments, reporting and budgets across the group.
§ 2

How a group loan is set up

  1. Purpose

    What the money is for, how much is needed and when.

  2. Loan or equity

    Is it short-term working capital or long-term funding? Long-term needs are often better met with capital (see § 3).

  3. Written agreement

    Amount, interest rate, repayment schedule, early repayment and what happens if a payment is missed.

  4. Approvals

    The decision is made by the bodies that the articles of association of each company require.

  5. Records

    Payments and balances are booked and reconciled by both companies, and confirmed at year end.
§ 3

Loan or equity? A funding mix check

For any parent company funding a subsidiary. Enter the subsidiary's figures and choose how much of the new money comes as a loan. The balance sheet shows how the choice changes its financial position.

All equity60% as loanAll loan
—debt to equity after
—equity ratio after
—interest a year, all debt
—interest cover (EBIT ÷ interest)

    Simplified: assumes the same rate on existing and new debt and that all new money stays in the company. This is an educational sketch, not financial, legal or tax advice. Nothing you enter leaves your browser.

    § 4

    Limits and notices

    • No loans, credit or financing to consumers or to businesses outside the group.
    • No investment products, no promised returns, no management of third-party funds.
    • No legal, tax or accounting advice. These go to qualified professionals.
    • Need business financing and you are not part of the group? Speak to banks, or look at the state development institution ALTUM and the Investment and Development Agency of Latvia (LIAA), which offer support programmes and information free of charge.
    • Fraud warning. The company never asks the public for money. Any offer of "KGW Investment" deposits, shares or returns is fraud. Do not pay. Report it to the State Police and let us know by email.
    § 5

    Contact

    For group companies, banks, auditors and authorities.

    Telephone+371 2487 1397
    Emailreply@kgwinvestmentsia.com

    Personal data in correspondence is processed only to deal with it, in line with the GDPR.