Understanding Various Types of Private Equity Investment

Often referred as “family of alternative investing methods” by 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. PE 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 what are the various type of Private equity investments and how they can be used in different cases. 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 more streamlined. Growth equity funds:...