PE Fund Guide & News

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....

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 inve...

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 l...