PE Fund Guide & News

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 c...

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...

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 o...

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...

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 S...