Private Equity Investment
A private equity investment is usually considered made by a venture capital firm, a private equity firm, or an angel investor. Every class of investor has its own set of preferences, investment strategies and goals, including the exit time for the particular investment.
Capital obtained from a private equity investment firms is good option for companies and entrepreneur projects looking for working capital.
A lot of existing small and middle sized companies also need some extra capital for further expansion, new-product development, or restructuring of the company's operations, management, or ownership.
Well, shortly saying, private equity (firm or fund) is composed of funds and investors that directly invest in private or public companies, especially in the fresh start-up ventures.
Sometimes, private equity capital is engaged in buyouts of existing companies, especially public companies causing de-listing them from stock exchange. Please note that private equity (firm or fund) itself is a venture that is not noted on a public exchange.
Private and institutional investors provide the capital for private equity. This capital can be used to fund new technology project, or to make acquisitions (this famous leveraged buyouts) or expand working capital in the existing companies. Goals and strategies are different in every particular case.
Some private equity investment ventures simply act as global private equity investment manager on behalf of their clients, and look to invest in "promising" companies with development potential.
Some even invest in the private equity secondary market by acquiring portfolios of privately held companies and projects. It seems that value creation and value creation opportunities, are main priorities of private equity investment teams & funds.
Some funds are more ambitious and invest in growth equity, in order to create value by scaling businesses to their next phase, not by using financial engineering.
However, there is an opinion that private equity investing should always deliver an illiquidity premium when compared against public equity market investing.
Some funds focus on investing in strategies where there is a genuine need for private capital and could compensate for the illiquidity associated with private equity investing.
Please browse websites of the quality private equity investment firms and funds, listed below in our Best Financial Directory.
Private Equity Investment Featured Listings
Private Equity Investment Regular Listings
Some private equity investment firms focus on making investments into operating companies involved in the direct and indirect real estate business where quality managers have a clear plan to create value.
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