PE Fund Guide & News

Let’s start out by stating that this blog is not for people with a keen insight on all sorts of financial practices, but for the layman who’s void of any knowledge about all things financial. Now, coming to the topic of discussion; one might have often come across the term ‘private equity fund’ and wondered what in the world it refers to. For those of us who aren’t quite clued into the inner workings of the economy, words like ‘private equity’ and funds in Real estate India etc. might even give us daunting nightmares or leave us feeling embarrassed about our limited understanding of economics. But rest easy, it’s not something one’s absolutely got to know unless relevant, and it’s definitely not something that should make us insecure! Regardless, let’s fill you in with a few fundamentals of PE funds India so that you’re not left with a gaping mouth the next time all those financial folk around you are discussing the matter! So, what is private equity? In essence, PE fun...

Every business has both long-term and short-term financial requirements. The difference between the current assets and current liabilities is commonly referred to as working capital. Essentially, working capital is needed to meet the short-term financial requirements of a company and hence measures the efficiency of the business. Often companies fail to generate enough working capital despite making use of the best private equity fund . This happens because inexperienced management often gets too caught up in the long-term needs of the business, thereby ignoring the immediate needs. Read ahead to learn more about the importance of working capital: 1.    Day-to-day operations   The inability to generate adequate working capital can be really hazardous for the reputation of the company. Working capital is needed to pay salaries, purchase raw materials, pay off current liabilities etc. Lack of cash can also temporarily halt the production activities. And whil...

The terms Private equity and Venture capital is often confused by most.That isbecause both of the terms refer to firms that invest in companies and exit by selling off their investments made in equity financing. However they are different from each other in major sectors. The greatest difference is in the way the firms involved under these types of funds operate.Both Private equity and Venture capital buy different types of companies and the company size differ from each other too. Different amount of money is involved when it comes to investment and the percentages they claim of equity in the companies is different again. Certain Indian investors in Private equity consider Real Estate in India to be a separate asset class altogether. Private equity firms are more into buying mature and established companies that are likely to stay in the industry. Private equity firms buy these type of companies and reduce and control operations to increase the revenues. On the other hand,...