PE Fund Guide & News

Every start-up or business dreams of securing funds from angel investors and private equity companies so that they have enough to convert their ideas into reality. However, a lot of people do not know how to go about it and the whole business of approaching people and pitching ideas is just a basic understanding of the process.   There is a whole lot more than you would need to do as securing funding for your ideas is an extensive and time-consuming process. Nevertheless, when you achieve your goal and get that opportunity, your hard work will finally bear fruit! The process for private equity fund investment in India is basically an understanding of how a private equity funding is secured and is a series of steps that allow a private equity firm to find, analyze and negotiate deals efficiently.  While no private equity process is identical, they all follow a similar path, as outlined below.       Originating the Deal Private equity firm...

Exit Strategies For Private Equity InvestorsPrivate equity is basically the fund that is not listed on a public exchange. It is an asset comprised of funds and investors who directly invest in private companies or engage in buyouts of public companies. Private Equity Investment in India plays a huge role in the development of a company. The investors of these private equities, at the time of their entry, already have a prepared plan for exit. They never plan a forever or long-term mutual relationship with the company. After acquiring a substantial amount of profit they plan to exit.  While exiting an investor has a lot of options likes:- Initial Public Offer (IPO):- IPO is a very common way used by investors as an exit strategy. They come out with a public offer and sell the shares as a part of the IPO to the public. The allotted shares can be sold by the investors immediately or after the company gets listed and the shares start trading on the exchange.  Second...

Private equity investment is the type of investment which helps firms and individuals gain some amount of control and many a times total control over other companies in search of good returns. It is type of investment which is done to take control of the private company or any public entity which is planned to turned private. Although the money used for investment is completely private it is used to take control of both public companies or private companies. This industry has evolved a lot in last 2 decades and still the basic principles has remained the same over all these years. The firms invest in the company to buy the rights to the company and then the earnings are used to make the reverse payment to themselves. The number of deals in terms of PE funds in India has increased significantly in the past few years as a result of the startup revolution. Many large companies in India today thrive because of the timely support from large private equity firms and venture capitalists....

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

Those of you who are willing to invest in the real estate business must know few dynamics of this domain. Besides knowing the location and history of the market that they are going to invest, one must also be aware of the developments that are likely to happen in the future. If you wish to keep ahead in the competition of Indian real estate then you must do your homework regarding the current market trends. For a newbie, understanding the dynamics of real estate business can be daunting. There are certain things that everyone must know about the real estate. Before investing in the real estate market, it is important to study the current market trends. The investor must see the potential areas where the price of the property is accelerating faster than the other areas. Another benefit of studying the market trends is that it helps you figure out the ‘fair’ price for certain properties. If you are looking for property in area of high demand then you must be aware of the marke...

Private equity is a type of investment which has become very popular these days, in private equity people invest in private companies or publicly traded companies that turn into private ones subsequently, due to private transactions. The stakes in these companies are mostly free from rules and regulations of the federal securities and also the public market.  These firms are managed by a general partner and are funded by limited partners. Growth equity firms, leveraged buyout firms and venture capitals are all different kinds of private equity funds. Today there are many successful private equity firms, but a lot of planning and assessing goes into creating one’s own private equity firm, below are few steps and strategies that one should think about before venturing into this business :- • DEFINE BUSINESS STRATEGY Defining and outlining a business strategy is the most important and basic step, knowing and comparing your financial goals from other competitors and doing pr...

Investing in real estate is a big step for any person, and it can be a little overwhelming at first, but there are many advantages of investing in real estate and it is a great way to diversify ones portfolio in many perspectives, tax perspectives being one of them. If you wish to invest in real estate, there are a few things you should keep in mind. Doing a full market study before investing is very important, as it will give you an idea about the market value and the most popular areas that you can invest in. Those who are regularly involved in real estate know the business very well, but for those who are new to it, knowing everything about it in the beginning itself can be a daunting task. Below are a few things one should keep in mind before entering the real estate arena. The first and the most important thing to do is study the local market trends and pricing in the area you wish to invest. For example, you should look for places where the price of property is accelerati...

The term private equity has become a common phrase frequently used in papers and blogs. Though many people talk about it or use it in discussions but only a few have an absolute understanding of private equity.  What Well technically a private equity the equity that is applicable for private companies i.e. not publically traded, hence PE is the equity which is not traded or listed publically. It is made up of several firms who invest directly into private entities at different stages and stability of maturity and cash flow. The underlying objective of investing in private companies is obviously to maximize the return on investment as they invest in growing companies with potential of making it to the IPO. PE firm also invest in Real estate India . The pool of investors is comprised of several pension and endowment funds, and few large PE firms funded by a bunch of accredited investors who are individual investors with affluence and stable income source. How Private equity...

Investing is not as complicated as it looks, and if you follow the right methods to invest, it’s actually pretty easy; you’re basically using your money to work for you, so that you yourself don’t have to work overtime to increase your earning capacity. One has so many options these days, you can invest in stocks, bonds, mutual funds or real estate, and all of them don’t even require huge investment, contrary to popular belief. GETTING YOUR FINANCES Knowing the state of your finances is a very crucial step before investing, as you need to know the amount of money you can invest. Apart from the cost of living, payments for credit card balances and loans can reduce the amount of money you have to invest. Fortunately, investing doesn't require a significant sum to start. BASIC KNOWLEDGE It’s not necessary to be a financial expert to invest, but you do need to be aware of some basic terminology. Knowing the differences between stocks, bonds, mutual funds and understanding compl...

Looking at it from an amateur point of view, investing looks really complicated. You have the money and you want to put it somewhere so it grows with an interest. It’s kind of like you let your money to do your work as it keeps increasing itself. While it’s common to invest in stocks, bonds, real estate etc, new trends have also come up. Here are a few pointers to keep in mind before your next investment:  Finding the money The most important step and the most basic one is getting the money that you want to invest. You have to keep in mind your expenditure like credit card payments, bills, loans etc to chuck out a sum worth investing. Thankfully, it doesn’t take a lot to begin with. Learning the basics You don’t have to be a financial expert to begin investing, but a basic knowledge of the popular terminology will help a lot. Such as you have to know the difference between stock and bond, mutual fund and loan. Some complex topics which have been gaining traction, like pri...

Equity capital not listed on a public exchange is called private equity and has investors and funds investing with private companies directly. Those that invest in public companies, do so in order to delist the equity. Retail and institutional investors are the majority investors present on the field as they have the ability to commit huge sums for longer periods, required to initiate a turnaround of a distressed company or an even of liquidity. Since 1970’s, PE’s have increased steadily in both size and significance. Often they pool their funds in order to make large public entities private. To fund very large buyouts, a large fund is issued through leveraged buyouts. They then attempt to improve the financial health of the company to be able to sell it again at a later stage. So what do the PE investors actually do? Raise Money- As discussed above, this forms an essential part of Private Equity Investment in India . The job includes looking for capital commitments from extern...

Real estate sounds like a wonderful investment vehicle! With the popularity of real estate funds, many investors wish to add this exciting opportunity into their investment portfolio and generate some substantial profit. If you're also somebody who's heard enough about real estate around you, and can't wait to try it out, here's a list of tips for you. •    Put complete attention: Real estate in India is more like a full time business and don't make the mistake of considering it as a side-by-side investment. It is quite different from investing in stocks and bonds, and you must focus completely on it. Do everything from making a business plan to listing down the nuisances involved.  •    Look for a mortgage broker: Or a bank if you're getting your investments financed! It's wise to discuss these things with realtors, when you're a newbie in this business. Ask for recommendations for a bank or a broker.  You have to have a bank stat...