Few Facts Of Private Equity Funding

Private Equity funding is a popular way to raise fund. If you are considering investing into a property or enterprise here are the things you need to know about Private Equity funding. Read on to know about the facts; this would help you guide through the process of the investment. You can make an informed and better decision after considering the following facts:

•    “Buy low, and sell high” is the mantra of private equity investors who are known to be very patient by nature! This is why they are prone to wait for lucrative opportunities, buy it at a significant discounted value, maintain it and wait for it the value to appreciate to a point where it can be sold for good revenue. As soon as this takes place, the better, but most Private Equity investors invest in time as well, and are prepared to wait. They put in more capital into the enterprise if needed, and maximize the worth of their investment.

•    Anything that is private, even if it is a small manufacturer or a large subsidiary of a multi-national conglomerate comes under the purview of Private Equity investment opportunity. Even the public companies which are looking forward to go private can change to Private Equity firms or investors for guidance and help. Many public organizations have switched to private with private equity funds in India till date.

•    It is often said that you lose control of your company through Private Equity investments but this in a way ensures transparency and establishes accountability as well. Investors can call out their terms with ease, and hold the management answerable to performance targets. They have the capacity to negotiate the seats on the board and ensure of a lot more powerful company than just a public company shareholder.