Know About The Origin Of Private Equity Industry

The private equity industry has seen its fair share of ups and downs in their time since the origin of investments in equities. These busts and booms have led the industry to be more mature and bring upon safer ways of investment. The broadened concept of investment in equity brought two major concepts in this field, one of Venture capital and the other of leveraged buyouts. Bothe of these concepts run parallel to each other but at some points are interlinked. Private equity in India also uses these two major branches of investment.

Private Equity India

The 80’ was the decade for the proper growth and development of leveraged buyout. This was the first time this concept was used more than any time ever. This was the first time that the general public became more aware about the financial process involved with the buyouts of the large companies which had grown to be very unpopular in those days. In the decade of 1980’s the private equity industry moved to the verge of raising $2.4 billion and by the end of decade it became a mammoth $21.9 billion which marked the beginning of new era in the process of safest investment process.

Venture capital has been the reason of growth of many largest and the richest companies in the world including Apple Inc. and Fedex. Venture capital took a hit in 1980’s when the returns came very low. While the leveraged buyout was at a boom in the same time the venture capital had taken a bust. There was a massive competition among the startups and the fear of missing out and the competition among the various equity firms made them make some bad calls. Soon enough in the beginning of new millennium, with the emergence of many promising startup companies venture capital was on its rise again and private equity fund found its way into the modernised investment.