PE Fund Guide & News

Private equity in absolute terms is a means to invest in a type of asset which is not generally publically traded and even if it is public it is traded with the intent to make it private. Unlike other market variables like stocks and bonds amongst other, private equity formation takes place in the form of assets which are not liquid (companies).  By buying companies the private equity firms ensure an access to their revenues and assets thereby having high return on their investment for the future. The transaction of their firms is highly dependent on debt which is usually in the form of high-yielding bonds. With the inclusion of debts to their finance acquisitions, these firms ensure an increase to their financial returns.  This debt which has a fixed cost to it is a great way to have high returns plainly because with the high return on this investment, the profit is directly affected after the sale of these fixed cost debts. Having understood the way p...

Experts say that investing in residential properties is one paradigm most investors are comfortable with. In fact it is convenient to invest in a residential property since it is easier to understand the whereabouts of the same. However on the other hand, it is a pain much to talk about investments in commercial properties, simply because it is a relatively mysterious field, says a leading real estate in India company   Here is an unraveling of various aspects related to investing in a commercial property: -Styles Commercial property specifically consists of three types mainly: ·          Retail ·          Office ·          Industrial -Return on investment It is always a smarter move to invest in commercial property owing to the fact that it is relatively low on risk but is low on investment as well, explains an expert in re...

Real estate provides an interesting and much needed alternative to mainstream investments as it is one of the few sectors that have outperformed inflation and slack in GDP over time. However, homeowners cannot deny the risk property deflation seems to pose. Fortunately for investors, there is a healthier alternate, real estate funds in India, which doesn't give the security of ownership but guarantees better risk management. The follow-up of the blog delves into the risks and advantages of it. What is it? Real Estate Funds in India mean a professionally managed and privately raised pool of fund that will be used to invest in diversified real estate holdings. Here you are one of the private investors whose money is combined and invested in an array of projects. Thus, you are not committed to a single venture but your money is spread around multiple projects.  Rewards ·          Minimum commitment with the ventures an...

Some of the globe’s top Private Equity firms have gone in losses by raising Private Equity funds in India, reason being administration issues in investee companies. On top of so many unsuccessful investments made between the years 2005 and 2008, the private equity investors were not even given adequate and their due post-investment rights. The matter further worsened because of poor reporting to  private equity funds in India as well as investee firms’ languid attitude towards investing in systems, procedures and controls. So what are the lessons that Private equity firms have learnt by investing in India? Top professionals from the field list some out for us: Know your company Prior to investing, make sure that the performance of a company is in line with what’s projected by it. The executive might cite excellent results and share price might also seem to go up just before the PE investment is made, however there is no guarantee if the speculated evaluations ...