Posts

Showing posts from 2016

Private Equity Investment In Indian Movies!

Image
The term non-correlated asset category covers an entire range of prospective investments, including venture capital, private equity and alternate investment strategies. Private equity business has drastically changed in India over a decade, attracting foreign investors to make major investments in movies and real estate funds in India . Investors from Wall Street to Silicon Valley to the Middle East to Russia have now been parking their money in Indian movie business expecting to earn huge sums of money. If you are planning to invest in PE fund in India that too in the entertainment business then it makes much more sense to invest in movie studios then films directly as it much more scalable approach for major earnings and also offers clear exit strategies. With more than ten movies releasing every single week, Indian studios offer a wide variety of choice to investors. Many of them eventually blow up on the box office but one needs only one blockbuster to hit the jackpot.  

What is Private Equity Investment?

Image
Private equity – this term has come to be one of the most common phrases. Though many people talk of it, and its implications, only a few understand what it actually means. Substantially private equity stands for the equity that is applicable only for private companies and cannot be traded publically. Also, due to regulations they cannot even be listed publically. PE is essentially made of several firms that invest directly in private companies or entities at different stages and ensure stability of maturity and cash flow for extended benefits.  Most people opt for private equity funding and investing since investing in private and upcoming companies with a stellar business and revenue model maximizes the return on investment. It is beneficial to invest in growing companies that have the potential of making it to the IPO. The pool of investors consists of pension and endowment funds, firms funded by accredited investors and investors with stable income source. They also invest i

How Do Private Equity Firms Operate?

Image
The working mechanism of private equity is quite similar to that of the venture capital however, there are certain differences as well. Venture capital is more focused on early-stage companies with high growth capital whereas private equity makes an investment on a much wider range of companies. These firms invest in companies, fuel its growth financially for first few years and trade it off for a substantial profit after some time.   Private equity firms are no passive minority investors and expect a large stake in the business. These firms are more interested in taking the reins of the business in their hands. Growth capital in India is highly benefited by private equity firms in the country in past few years. Here is how private equity deals are done in most countries.  Leveraged buyout In the case of “Leveraged buyout”, firms use their leverage or borrow their money to boost their returns. The firm usually borrows money from the banks or other lenders and later add money

Why Do Big Enterprises In India Showing A Positive Attitude Towards Private Equity In Recent Times?

Image
Going by the technical terms, private equity is basically venture capital. It is a general term used to describe all sorts of funds that can be extracted from a bunch of investors to acquire stakes in a company.  PE fund in India is often associated with assets acquired to boost revenue generation and revitalization. The economic growth is on a high-note in our country and established firms are specifically interested in leveraging ‘PE’ funds for unprecedented growth.     There is an age-old stereotype associated with the private equity firms, which is that these firms strip of the company from its best assets but that’s not actually true. On the contrary, PE firms work hard to generate value creation strategies by investing money on diverse range of companies.     Some firms buy out the company outright, whereas some ask some of their board of directors to stay and take care of the assets on their behalf. These firms typically use strategies like buying out the founder, cap

Private Equity Investment

Image
The term private equity has become a common phrase frequently used in papers and blogs. Though many people talk about it or use it in discussions but only a few have an absolute understanding of private equity.  What Well technically a private equity the equity that is applicable for private companies i.e. not publically traded, hence PE is the equity which is not traded or listed publically. It is made up of several firms who invest directly into private entities at different stages and stability of maturity and cash flow. The underlying objective of investing in private companies is obviously to maximize the return on investment as they invest in growing companies with potential of making it to the IPO. PE firm also invest in Real estate India . The pool of investors is comprised of several pension and endowment funds, and few large PE firms funded by a bunch of accredited investors who are individual investors with affluence and stable income source. How Private equity fir

Understanding The Main Factors That Affect The Real Estate Market

Image
Real estate market is a complex and transitory industry. It won’t be wrong to say that investing in this market is equivalent to gambling because the returns might be multifold and you might have to bear great losses as well. The productivity of this market is never guaranteed. If you are planning to invest in the Real estate Fund in India then you need to keep certain factors in your mind to gauge your chances of success. First and foremost, you need to have a proper understanding of prevalent economic trends. Factors like politics, rates of natural guests and petroleum, and oil production are the major deciding factor of the economic trends and one must check it before investing in the real estate market. The second thing that majorly affects the real estate trends are interest rates. PE funds in India are also affected by the interest rates. It is a well known fact that increased interest rates were the major culprit behind the real estate crash of 2007 and had a major i

What All You Need To Keep In Mind Before Investing In The Real Estate Business?

Image
Those of you who are willing to invest in the real estate business must know few dynamics of this domain. Besides knowing the location and history of the market that they are going to invest, one must also be aware of the developments that are likely to happen in the future. If you wish to keep ahead in the competition of Indian real estate then you must do your homework regarding the current market trends. For a newbie, understanding the dynamics of real estate business can be daunting. There are certain things that everyone must know about the real estate. Before investing in the real estate market, it is important to study the current market trends. The investor must see the potential areas where the price of the property is accelerating faster than the other areas. Another benefit of studying the market trends is that it helps you figure out the ‘fair’ price for certain properties. If you are looking for property in area of high demand then you must be aware of the marke

Why is Investing in Real Estate a Smart Move?

Image
Real estate investment is always termed as the safest bet and the smartest way of making investments. They are safer than shares, bonds, mutual funds or debentures which are subjected to market risks. Here are a few elaborated reasons why real estate investment is the smartest move:- • In India, real estate has proved to be an excellent and reliable source of profit. Property prices have seen an upsurge in the past 5 years, and will continue to go higher as predicted. • A property in the form of a land, building, flat or office space provides a steady stream of income if not used for personal purposes. By renting it out you can yield maximum benefits, and this proves to be more beneficial if the property is in a posh colony. • Renting out the property also helps in yielding greater returns as they are subjected to inflation. Inflation increases the construction cost which automatically raises the rent. • You can upgrade the property you own by renewing it through various for

Competitive Advantages of PE Investment

Image
Raising capital for companies is one herculean task but with appropriate planning some have succeeded in securing capital. Private equity is the kind of investment which is made in companies at their early stages. The main objective of private equity investors is to sell the stakes in the company after the IPO. The investors who put their money are usually the pension funds, family offices, corporations, charitable and endowments foundations. The investor invest their money for a  long period of time the dominant reason to do that is less exposure to risk.There are many benefits of private equity investments: • Lower Volatility: The downside of investment is the risk quotient involved. And all types of investments carry risks to some degree. However, in case of private equity that risk is a lot lower as compared to other options for investment. As already mentioned the investors cannot withdraw the money before the company goes for an IPO (Initial Public Offering). It can t

Why Efficient Private Equity Management Is Important For Organizations?

Image
Private Equity is a complicated concept. One needs to understand the term before investing in a Private Equity Fund and understanding its long term implication. An investment scheme for the purpose of making collective investments in various equity securities in accordance with an investment strategy associated with private equity is called a PE Fund. India has many people who consider private equity funds to be hedge funds. However, there is a difference between the two that needs to be understood. A hedge fund aims to provide the highest investment returns possible in the minimum amount of time. To make this possible, hedge fund investments are made in highly liquid assets primarily, enabling the fund to earn profits on one investment in a short period of time and then transfer funds into another investment. Hedge funds invest in almost anything and everything –derivates, bonds, commodities, currencies, individual stocks, and arbitrage– whatever the fund manager sees as offering h

Understanding the Basic Dynamics of Private Equity Investment

Image
Private equity is a process of investing and acquiring ownership in companies so that they can get high investment returns in the future. It is a source of investment capital for high net worth individuals. Investors that are partners with private-equity firms raise funds and manage money to get favorable returns from their shareholder clients. Investors raise real estate funds to develop new products, technologies, and working capital.     In past few years, private equity firm in India has been top performers at accounting and various law firms, which is why they have been able to successfully attract best corporate globally. Equity investors in India have competent legal skills to support transaction work in order to complete deals and translate their advisory work into company’s management portfolio.   There are two major functions of any private-equity firm. First is transaction execution and the second is portfolio oversight. Deal origination or transaction oversight

The Key to Seek Venture Capital

Image
Venture capital is basically the financial help that investors provide to small businesses and start-up companies, which seem to have long-term growth potential. For start-ups that do not have access to capital markets, venture capital is an essential source of money. The investors have to be ready to take risks, as these are new businesses and might not be stable all throughout, and on the other hand the beneficial factor for them is that, they get a say in the company decisions, which may be a downside for the owners of these businesses. Venture capital generally comes from investors that are well-off, investment banks and any other financial institutions that pool similar investments or partnership. Venture capital can also be provided in the form of technical or managerial expertise and does not always have to be in the form of monetary expertise. Venture capital funding is increasingly becoming a very popular source of raising capital for new companies and start-up ventu

How to Get High Returns On Your Investments

Image
Do you feel you’re not getting the best rate of return on your investments? Below are a few methods of earning high returns on your hard earned money:   Peer-To-Peer Lending Lending from peer to peer through various online companies is my preferred way to earn a rate of return on investments that is higher than what you would normally earn on a bank deposit. A rated loan earns a little over 6% for the investor. It is not rocket science to earn over 10% in returns. A risky investment of this type would earn a rate of return on investments of over 20% on an average. Investing In Your Own Business The best investment is starting your own business. It is one of the best ways to earn a high rate of return on investment. Whether it is opening a store or as simple as starting an online blog, a business venture is a great way to increase your investments’ returns. Venture capitalists or private equity funding could be used to raise funds for expansion and development. Short-Term Stock

Types of Investors in the Market

Image
Investing is not as complicated as it looks if you follow the right methods to invest. It’s actually pretty simple; you're basically using your money to work for you so that you don't have to work overtime to increase your earning capacity. One needs to know about the two asset classes that exist, there is the public sector and then the private sector. The public sector is one available to the general public, meaning that the shares, stocks, bonds and such are all out there ready to be bought and/or sold by almost anyone with the means to do so. Basically, the public sector is open to all, and if one has the right amount of money they can invest to a certain degree in a company open on such a platform. The private sector on the other hand is one where investing is not that easy, as this sector is not open to the common person. Private sector or as it is usually also called, the alternative asset class includes various kinds of areas within it, namely private equity, real esta

Steps To Look Into While Setting Up Your Own Private Equity Firm

Image
Private equity is a type of investment which has become very popular these days, in private equity people invest in private companies or publicly traded companies that turn into private ones subsequently, due to private transactions. The stakes in these companies are mostly free from rules and regulations of the federal securities and also the public market.  These firms are managed by a general partner and are funded by limited partners. Growth equity firms, leveraged buyout firms and venture capitals are all different kinds of private equity funds. Today there are many successful private equity firms, but a lot of planning and assessing goes into creating one’s own private equity firm, below are few steps and strategies that one should think about before venturing into this business :- • DEFINE BUSINESS STRATEGY Defining and outlining a business strategy is the most important and basic step, knowing and comparing your financial goals from other competitors and doing proper

ABC of Real Estate Investments

Image
Real estate in its traditional sense falls in two categories ownership interest where the title can be transferred to another investing party with the full risk attached to the asset and leasehold interest where the rightful owner leases the property to the investing party without transferring the risks. But in investment finance sense, it is an asset class consisting of investment in property through debt and equity. Private Vs Public Markets The decision to invest I real estate has two fronts. Number one is deciding on the kind of exposure you are willing to accept. You can either invest in public markets or in private markets which are dominantly done through private equity funding organisations like Everstone Capital. Type of exposure determines the returns you are likely to receive and the risks you might face against your investment. Private markets are more stable as cited by some experts but that is all subjective as no statistic has been able to substantiate that. In

Guidelines to Keep In Mind before Investing In Real Estate

Image
Investing in real estate is a big step for any person, and it can be a little overwhelming at first, but there are many advantages of investing in real estate and it is a great way to diversify ones portfolio in many perspectives, tax perspectives being one of them. If you wish to invest in real estate, there are a few things you should keep in mind. Doing a full market study before investing is very important, as it will give you an idea about the market value and the most popular areas that you can invest in. Those who are regularly involved in real estate know the business very well, but for those who are new to it, knowing everything about it in the beginning itself can be a daunting task. Below are a few things one should keep in mind before entering the real estate arena. The first and the most important thing to do is study the local market trends and pricing in the area you wish to invest. For example, you should look for places where the price of property is accelerati

Private Equity Investment Primer

Image
The term private equity has become a common phrase frequently used in papers and blogs. Though many people talk about it or use it in discussions but only a few have an absolute understanding of private equity.  What Well technically a private equity the equity that is applicable for private companies i.e. not publically traded, hence PE is the equity which is not traded or listed publically. It is made up of several firms who invest directly into private entities at different stages and stability of maturity and cash flow. The underlying objective of investing in private companies is obviously to maximize the return on investment as they invest in growing companies with potential of making it to the IPO. PE firm also invest in Real estate India . The pool of investors is comprised of several pension and endowment funds, and few large PE firms funded by a bunch of accredited investors who are individual investors with affluence and stable income source. How Private equity fir

Steps To Follow To Invest In Equity

Image
Investing is not as complicated as it looks, and if you follow the right methods to invest, it’s actually pretty easy; you’re basically using your money to work for you, so that you yourself don’t have to work overtime to increase your earning capacity. One has so many options these days, you can invest in stocks, bonds, mutual funds or real estate, and all of them don’t even require huge investment, contrary to popular belief. GETTING YOUR FINANCES Knowing the state of your finances is a very crucial step before investing, as you need to know the amount of money you can invest. Apart from the cost of living, payments for credit card balances and loans can reduce the amount of money you have to invest. Fortunately, investing doesn't require a significant sum to start. BASIC KNOWLEDGE It’s not necessary to be a financial expert to invest, but you do need to be aware of some basic terminology. Knowing the differences between stocks, bonds, mutual funds and understanding compl

How to Spread the Risk of Your Investment

Image
Investing idle money in various sources is always a good idea for those who want to utilize their earnings, as the saying goes nothing makes more money than money. Returns from the investments can keep you afloat in tough times to help pay the bills. But managing the risks of the investments is a matter of paramount importance failure to which can lead to unrecoverable losses which would defeat the purpose of investing in the first place. According to a recent survey, 4 0ut of 10 investors don’t know how their portfolio is split between equities, bonds and other investments; let alone talking about spreading it. More exposure to equity would give better returns but will double the risks too; a higher stake in debt is sure to reduce the risk but also reduces the yield. So what is the best way to spread the risk while still reaping good profits?  Here are some options to efficiently spread the risks: Real Estate: A real estate fund is a professionally managed portfolio of divers

TYPES OF INVESTMENTS AND INVESTORS

Image
The investment market is a vast and confusing sector; one needs good knowledge and experience to navigate through, without getting lost. There are two main asset classes that exist, which are the Public and the Private sector. The public sector is one which is available to the general public at all times, which means that the shares, stocks and bonds are out and are ready to be bought and sold by anyone who has the means to do so. Thus, the public sector is open to all, and if one has the right amount of money they can invest in a company open on such a platform. On the other hand, the Private sector is one where investing is not that easy, as this sector is not open to the general public. Private sector or as it is usually called, the alternative asset class includes, various kinds of areas within it like; Private equity, commodities like gold, wine and art, Real estate fund India is big market for investors who want to invest their money in the private sector. The main reason

Investors and Their Types

Image
The field of investment is a vast and elaborate one, which requires extensive knowledge and experience to effectively navigate without losing your way in the numerous pathways within it. Primarily, every investor needs to know about the two asset classes that exist within the market, there is the public sector and then the private sector. The public sector is openly available to the general public, indicating that the shares, stocks, bonds and other securities are all available to be bought and/or sold by anyone from the public with sufficient means to do so. The public sector is open to investments from all, and if an investor has the right amount of money, they can invest their money to a certain limit in a company available on such a platform. The private sector on the other hand is not openly available to the common man. Private sector or as it is commonly known, the alternative asset class includes various kinds of assets within it, namely private equity, commodities like g

Investing In Equity the Right Way

Image
Popular culture has put investing as a very complicated activity, one which always requires expert advice keeps beginners incapable of making profit. To put it out in simple terms, investing is making your money an entity which controls your gains and losses so that you don’t have to put most of your time in it. There are plenty of investing options like stocks, bonds, mutual funds, real estate, and all except real estate don’t require huge loads of money.  Finding a source for finance Stepping into the world of investing without calculating your finances will keep you in a zone of obscurity. Assess your assets and calculate how much expenditure goes out in ways of rentals, loans, credit card bills etc. Contrary to the general notion, you don’t need a large sum to start-off. Studying the basics Like mentioned above, investing is not an activity only experts can do. Though, a basic understanding will help you a lot. Terms like real estate investment, private equity , mutual fu