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Understanding Various Types of Private Equity Investment

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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: These funds

Private Equity – How to Secure your Investment

Private Equity firms must have great knowledge and must initiate informed decisions to avoid the loss of investment. Still in the nascent stage in India, even the bigger firms are advised to tread with caution. The governance of the investee enterprises plays a significant role in the return on investment. Minimal negligence entails that the firms might lose significant sums of money like many did between 2005 and 2008. However, experts forecast that 2017 is a comparatively good year for private equity firm in India . A majority of the firms are hopeful about this year as compared to last year. Here are few things to keep in mind before investing in firms. Perusal of reports It is a given that the investing enterprises go through the records of the potential investees. However, they must go through the quarterly, mid and yearly reports. These reports are a reflection of a company’s executions and operations. If you’ve already invested in a firm that isn’t performing prope