Do’s And Don’ts In Private Equity

Investment sectors always entails certain amount of risk factors to it. Be it real estate, share market or the world of private equity, having a prior knowledge about your preferred sector of investment is always desirable. Among the investment sectors mentioned, most people have some amount of knowledge about how these areas work, however, when it comes to the sector of private equity there is great lack of information. In order to simply the world of private equity for the aspiring investors, listed below are the do’s and don’ts for the sector of private equity which will reduce the risks in this sector.


Real estate India
Private Equity Fund


1)  Take into consideration the founder

Before making up your mind about the company you would like to invest into, make sure that you have an in depth knowledge and information about the founder of the company. The founder of the company of your interest should have strong ideas about the future of the company. Furthermore, he should also be able to execute all his plans and ideas in an effective manner.

2) Make diverse private equity investments

In order to reduce the amount of risks in private equity fund make sure that you make diverse equity investments. By doing this you automatically avoid concentrating the risk factor in one particular area. Conduct a proper research about the potential companies you would like invest in before making the call.

3) Don’t stay restricted

Assuming that all investments sectors like real estate in India for instance, function in a similar manner is the biggest mistake a potential investor might commit. Sticking with the tried and tested methods of investment in this sector might seem like a safe route but thinking outside the box once in while is also a good way to expand your horizons and venture into unexplored avenues.

In order to ensure that you make investments that entail less risk factors enlist the aid of professional investors for this venture. Everstone Capital which is a leading private equity and real estate investment firm helps future entrepreneurs and investors in all their investment endeavors in this sector. Take their help in order to have a successful investment experience. 

Comments

Post a Comment

Popular posts from this blog

Know About These 4 Points Before Investing In Private Equity

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

How to prepare a perfect pitching strategy for your equity firm

To secure funding for your firm or start-up is one of the most important things for the health of your company. Many pitches made to limited partnership firms (LP) fail because of one little piece of information that you forgot to put or did not put in the right place. For some, the presentations are where you make or break your pitch and to garner and hold the attention of the people who will help you secure your funding is very important. To help you secure your private equity funding and ensure a better future for your company, here are a few tips:   Keeping the presentations short and crisp The presentations should not be long and tedious because no LP would want to sit through a pitch that would beat around the bush and not get to the main highlights as soon as possible. The first couple of minutes are the most crucial and this is the time where you should embed your most important messages. Presenting the track record at the start Anyone investing in any typ
Read more

Types of private equity investments

Image
Often referred as “family of alternative investing methods” by most business leaders, private equity is a bit complex and multidimensional topic to understand. It typically includes leveraged funds, growth equity funds, venture capital, and many other type of special situation funds.   The private equity funds in India can be industry specific or can have a focus on specific geography. Let’s dig this subject a little deeper and find out the different kind of private equity funds.  Venture Capital Funds: These funds can be further divided into two sub-types—early stage funds or later stage funds. Venture capital investment involves acquiring minority stakes in growth sectors like healthcare, bio-tech, internet, and energy. The basic motto of venture capitalist funds is recruiting the right people, professionalize various corporate functions, and make the functions of the company much more streamlined.   Growth equity funds: These funds involves investment in more
Read more