Take The Fall To Rise Stronger!

Investments are subject to market risks but if something is worth a risk, you must take the fall. This is in close relation with the concept of two of the most popular investment vehicles today- private equity and investment banking!

The Private Equity Fund investment is generally done in a venture capital firm with equity and debt securities that are not publicly traded on a stock exchange. There’s no doubt that a PE fund investment comes with an opportunity of multiplication of money! Today, it is growing at a fast pace and if you increase the initial sum of investment, that growth is fuelled even more!



But how does it work? What are the challenges related to it? And why it is not everybody’s cup of tea. Many of us are skeptical about whether or not to invest in Private equity or several other Real estate funds of the same kind and it indeed is true that investments like these require calculations and due diligence of a prime level. Here’s what all you should remember before making an investment.

•    Analysis: The history has a reason for its importance. It’s the past trends and patterns that help us analyze the current situations and give us a true picture of where we’re heading. Indulge into a meaningful analysis before you give your money away.

•    Structure: A well-managed structure provides a clearer image of the risks involved and the elements associated. Always make a pictorial structure to follow the procedure.

•    Deal making: Initially, the businesses run after the investors for their money- luring them in all the possible ways. In the later stages, it’s the other way round. Know who the people you’re making deals with are.

•    Valuation: Multiplying market with the pries may seem easy but with different components, the calculation may soon acquire a complex structure. Calculate the values smartly!
If you take the fall of investment with these tips, you’ll rise stronger.

Comments

Post a Comment

Popular posts from this blog

Know About These 4 Points Before Investing In Private Equity

Image
Private equity investment is quite a tricky concept to understand. One must be highly aware of what it is all about and what all it entails before investing. Equity is all about raising funds for a company with no obligation of having to pay back the dividend to shareholders.   The concept is a pretty vast and risky business. But to increase your chances of success and good returns on private equity investment in India , there are a few points you must keep in mind. We narrowed it down simply for you. Take a look-                          Stable cash flows: A private equity investment is likely to be good as the deals get improved returns because a good portion of finance is being used for investment. Using debt is known as leveraging the company’s assets. The company must strive to also make considerable interest (monthly, quarterly, etc.) and repayments. They can’t miss those payments either. If they succeed in this, banks will be open to lending as they can se
Read more

How to prepare a perfect pitching strategy for your equity firm

To secure funding for your firm or start-up is one of the most important things for the health of your company. Many pitches made to limited partnership firms (LP) fail because of one little piece of information that you forgot to put or did not put in the right place. For some, the presentations are where you make or break your pitch and to garner and hold the attention of the people who will help you secure your funding is very important. To help you secure your private equity funding and ensure a better future for your company, here are a few tips:   Keeping the presentations short and crisp The presentations should not be long and tedious because no LP would want to sit through a pitch that would beat around the bush and not get to the main highlights as soon as possible. The first couple of minutes are the most crucial and this is the time where you should embed your most important messages. Presenting the track record at the start Anyone investing in any typ
Read more

Types of private equity investments

Image
Often referred as “family of alternative investing methods” by most business leaders, private equity is a bit complex and multidimensional topic to understand. It typically includes leveraged funds, growth equity funds, venture capital, and many other type of special situation funds.   The private equity funds in India can be industry specific or can have a focus on specific geography. Let’s dig this subject a little deeper and find out the different kind of private equity funds.  Venture Capital Funds: These funds can be further divided into two sub-types—early stage funds or later stage funds. Venture capital investment involves acquiring minority stakes in growth sectors like healthcare, bio-tech, internet, and energy. The basic motto of venture capitalist funds is recruiting the right people, professionalize various corporate functions, and make the functions of the company much more streamlined.   Growth equity funds: These funds involves investment in more
Read more