1.8 Withdrawal of equity
Over what period of time will Co-operatives UK aim to withdraw the Booster match share capital investment?
The Booster Programme is offering match funding investment on the same terms as the terms offered to community members and will seek to withdraw its share capital as a “fair” proportion of the surplus/profit available for withdrawal in any one year.
Different business models may permit withdrawal over longer or shorter periods of time: withdrawals may be supported either through surplus/profit generation, alternative sources of capital or via new share offers. The Booster Programme will make a judgement on a case by case basis taking into consideration any initial “withdrawal suspension period” and the robustness of strategies in the business plan to allow for withdrawal.
The Booster Programme is unlikely to offer match to societies with no strategy around withdrawal.
As a rough guide, societies with viable business models would be expected to outline a withdrawal strategy commencing after 3 years and allowing for the majority of initial capital to be withdrawn or replaced in a further 5-10 years.