PE Fund Guide & News

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...

Very few private equity firms in India have got a code of ethics which has been documented formally. However, most of them feel that they always retain a code of conduct while performing their business and have very high ethical standards about which the media is biased against them. Private Equity Firm in India is on a more defensive state than it was ever before. There are a lot of controversy surrounding the transparency of their tax returns and even returns from their investment in the past few years. The leftwing media believes that not enough is being done about this to maintain a complete state of disclosure between people and firms. The media is completely hanging on to their claim that private equity firms are ought to pay more taxes than they are doing at the current stage.   A voluntary code of conduct is under process to be developed by the industry which shall be followed unanimously followed all around by all the firms. In a survey conducted among th...

In many cases, organizations fail to continue with their processes and slowly lapse. They do not make enough profit that will allow them to keep the processes ongoing. Under such circumstances, they require help from third-party investors. These investors come to assistance and lend money to these organizations so that they can acquire new technology, make acquisitions, and expand working capital successfully. The loan lent by the investors or firms is referred to as the private equity fund. Across the world, this type of fund has been helping organizations to increase productivity and expand the business. Hence, understanding the various strategies that can be used while investing in a private equity fund in India is crucial: Venture capital Venture capital is the fund invested in companies that do not earn much profit. This type of investment is done in the type of firms to identify their potential in establishing themselves in the market and providing innovative solutions...

Investing idle money in various sources is always a good idea for those who want to utilize their earnings. Returns from the investments can keep you afloat in tough times to help pay the bills or perhaps have a life that you actually want without much toiling. But managing the risks of the investments is a matter of paramount importance, failure to which can lead to unrecoverable losses which would defeat the purpose of investing money in the very first place. More exposure to equity would give better returns but will double the risks too; a higher stake in debt is sure to reduce the risk but also reduces the yield. So, what is the best way to spread the risk while still reaping good profits? In case, you are ready to go through the risks of private equity market in India, here is a break for you. Read the real estate market trends Private equity funds are more or less, a lot related to the real estate business.  A real estate fund consists of various real estate hoardings w...

The startup ecosystem in India is booming with ambitious entrepreneurial talent, foreign funding and government support. The secret to the success of a startup besides indigenous talent is funding for which thankfully there are several options in India. A startup in the seed stage, growth stage, expansion stage or mezzanine stage needs private investments to survive and grow. Some options at the disposal of startup founders are angel investors, venture capitalists, incubators & accelerators and private equity firms in India.            Private equity has emerged as a promising alternative for mature companies looking to raise capital for expansion plans. Private equity funds are investment firms who invest money in established firms with stable operations and revenues to fuel their expansions. They take a large stake in the company and stay invested until the companies where the investment is made offer IPO in which case they liquidate their...

Private equity in India has been in a growth phase for many years now. There are dozens of top private equity companies across India, that have developed multiple avenues of expansion for budding entrepreneurs. The process of seeking private equity investment can seem daunting at first, but if you understand what a PE firm is looking for you’ll be in better shape.  Don’t make the classic mistakes These could include being late for meetings, not being professional and not having a structured pitch. Few companies go ahead with unsolicited requests, and often entrepreneurs can appear too desperate for funding. They must follow a standard protocol of having a business plan ready, presenting professionally and preparing the right strategy for market expansion.  Have a clear strategy There is a lot of private equity India can offer, and its up to Indian start-ups to take that off the markets. Having a clear strategy takes care of that problem. As you develop your t...

The investment market is a vast and confusing sector; one needs good knowledge and experience to navigate through, without getting lost. There are two main asset classes that exist, which are the Public and the Private sector. The public sector is one which is available to the general public at all times, which means that the shares, stocks and bonds are out and are ready to be bought and sold by anyone who has the means to do so. Thus, the public sector is open to all, and if one has the right amount of money they can invest in a company open on such a platform. On the other hand, the Private sector is one where investing is not that easy, as this sector is not open to the general public. Private sector or as it is usually called, the alternative asset class includes, various kinds of areas within it like; Private equity, commodities like gold, wine and art, Real estate fund India is big market for investors who want to invest their money in the private sector. The main reason ...

When it comes to a career in the financial world, there are many areas for professionals than one might think there are. One of the areas that make an appealing career is that of, in the real estate private equity area. However it is also incredibly competitive and can be a bit confusing to understand. However, that does not mean that this area of work is not quite a lucrative and successful one. And it is possible to make a well to- do career out of it. First, let us understand what private equity investment in India is really about. A private equity investment is mostly made by a private equity firm, a venture capital firm or an angel investor. What these investors do is provide working capital to a chosen company that would allow them to work on expansion of the company, development of new and improved products, and also help with the restructuring of the administrations of the company like operations, management and ownership too in some cases. The area of real esta...

Private equity is basically the capital available for private investors and companies for growth and value creation. These companies use this capital for a variety of purposes, be it purchase of new products, expanding the working capital or strengthening the balance sheet of the company. For all those who have no idea of how it works, concept of private equity funds is very simple to understand. To start with, the funds are made by a single private equity firm, and then later large investments such as insurance companies, union pension plans are added to raise the capital. The capital is collected from various partners of the firm and is equally distributed among shareholders on the liquidation of the fund.  Now that you have have understood what private equity is, the question that comes in mind is why should any one invest in it? Well, there are a number of benefits of doing so. The biggest advantage is that private equity investments give returns in very short period of...

When it comes to investing in different areas, the first thing that comes to mind is how can one get back their investment, and make a profit. And that is why investor usually choose the profitable areas like start- ups, real estate and more. Areas like non- profits and even healthcare are seen as ones that cannot really add anything to the profit. But, in the past few years, the healthcare industry in India has been growing at an extremely swift speed. This could be because of the fact that the industry has become pretty much privatised and accounts for few good billion dollars. This industry comprises of the hospital services, diagnostic services and products, any new medical technology, clinical research organization and the trial services available at clinics. For a long time, the healthcare industry was relegated to the pharmaceutical space. It has been noted that the large domestic companies and pharmaceutical businesses have been doing good business and earning a good pr...