India’s future with private equity

Business investments can be of various  types. People make the investment of their own money into  mutual funds so  as to earn from them after the funds mature. People also invest into stock markets to  earn from the rising prices of the stock  by selling  them on the right time. Private equity investment is one of the many methods of business investments. This is considered as one of the safest methods of investments as you own a percentage of the company and the profit can be good if you have a good sense of prediction, analysis and business sense.



Private equity fund gets you a direct leverage on the company and the percentage of ownership is directly proportional to the amount of funds invested. In a startup ora new company, when a venture capitalist invests in a project they make the full investment; however they share the percentage of equity with the other members who would be among the board of directors. Ofthe company. In case of  leveraged buyouts 100 percent of the company ownership goes  to the private equity firm.


Private equityinvestment in India has proved to  be a boon in disguise to  the struggling small  businesses and also to the foreign investors who  took their chance and looked at India as a land of opportunity. This gave rise to  many of  the india firms to take a chance into this Industry and fortunately the risk borne fruits and turned out to be fairly successful. The Indian private equity industry is at new high and the businesses which have profited from it have become fairly successful as many have been able  to grow their feet internationally. Any type of business investment is risky but apart from all the risk involved private equity has planted its root deep in India market.  

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