PE Fund Guide & News

Private equity is the standard way of making investments into private companies or obtaining the buyouts from companies making one delisted from the structure of the company. Big investors who intend to earn profit from the wealth generally invest in equities to the company which is willing to expand its infrastructure and boundaries. Many a times private equity is also used for expansion of work capital or to solidify the balance sheet.  Private Equity Types of private equity funds : Leveraged buyout funds: This type of equity helps a firm or investor acquire the control over company mostly alone but in some cases they partner with other private equity firms to do the same. In this case the total amount does not come from investors. As a matter of fact a large amount is borrowed from the banks to do so. The hard assets of the company and the running cash flow is often used as collateral against the loans of the bank after acquiring the company. This is a safe game as t...

People most often get confused between Venture capital, personal equity, and venture debt. A lot of them start seeking funds and become associated with investment bankers or company brokers without actually comprehending what they're searching for or who they're talking to. The three are very much similar yet different in some ways. Let’s understand them in a bit more detail.   Growth Capital India Venture Capital: Venture capital firms raise funds by limited partners and commit the money in businesses for a share of the possession. This isn't so disparate than investing money in the stock exchange. You purchase shares and also have a say in how a business is run. As far as India is concerned, Venture capital and private equity investment come primarily from real estate in India . With VCs, it is a private transaction plus they require a substantial quantity of control. They aren't intrigued in running the company on a daily basis. Private equity: Technicall...

Private equity has been one of the terms most of us would have heard multiple times but never understood its importance or functioning. While half of us never bothered what it means, other half scratched their head while reading about it on internet. Private equity stands for equity that is applicable only for private companies and cannot be traded or listed publically. They are made of several firms that invest directly in private companies or entities at different stages. It also ensures stability of maturity and regular cash flow. Commenting on a larger landscape, people opt for private equity in India or investing in upcoming companies with unique business and revenue model which maximizes the return on investment. Their revenue generation helps investors to excruciate return on investments which works wonders for them, especially with growing companies that have the potential to make it to IPO.  Private Equity India Broadly, there are two types of private equity fir...

Private equity investment is quite a tricky concept to understand. One must be highly aware of what it is all about and what does it entail before investing. Equity is all about raising funds for a company with no obligation of having to pay back the dividend to shareholders. Private Equity Investment in India   The concept is pretty vast and a 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 a debt is known as leveraging company’s assets. 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 see...

Understanding private equity and its implications is essential if you want to get into the investment business. Extensively, private equity stands for the equity that is valid only for private companies and cannot be dealt with publically. Due to rules and regulations these equities cannot even be listed publically, hence private equity is basically made of several firms that invest directly in private companies or entities at varied stages. They ensure constancy of maturity and cash flow for comprehensive profits.   Many people prefer to go for rising private equity funds in India for private equity funding and investing. By investing in private and future companies with a stellar business, the revenue model maximizes the return on investment. It is best to profit from in growing companies that have the potential of making it to the Initial Public Offering in future. Private Equity Fund India Such investors contains pension and endowment funds, firms funded by cr...