PE Fund Guide & News

In the coming couple of years there is going to be more transparent allocation of the fee structure, the cost of assets and allocation of funds. There has been a regulatory pressure over the Private Equity Firms in India to manage their funds and keep a good draft for it because a lot of money is moved around in the market and sometimes backtracking them becomes almost impossible. This is one of the issues which is about to  become a regulatory law in the next couple of years. There has been constant request of information from the equity firms and this has been a long time conundrum for them as well. It requires a big data infrastructure for the companies. Building a set up to manage data does not seem like the most important issue for this big industry but has become important now as it is the demand of time now.    The opportunity for growth There is going to  be even more product innovation. The PE firms have been managing the funds very uniformly...

For finance professionals, breaking into the field of private equity is some sort of a dream. With PE funds in India fluctuating every now and then, making a career path in this field can be extremely challenging. If you are one of those who wish to acquire private equity abilities professionally then you must have a fairly good knowledge about private equity class.     There are several questions that may come to your head when you contemplate becoming a private equity analyst. The most important of all is how to accelerate growth. The prime task of private analysts is fostering growth and creating extra opportunities for the business they are investing in. The thing to remember is the private equity funds invest in assets that possessed independently or which are publicly owned, but the private equity buyer programs to take private. The PE analyst is the person who solely focuses on performing research, ratio evaluation, and making interpretations for the pri...

The working mechanism of private equity is quite similar to that of the venture capital however, there are certain differences as well. Venture capital is more focused on early-stage companies with high growth capital whereas private equity makes an investment on a much wider range of companies. These firms invest in companies, fuel its growth financially for first few years and trade it off for a substantial profit after some time.   Private equity firms are no passive minority investors and expect a large stake in the business. These firms are more interested in taking the reins of the business in their hands. Growth capital in India is highly benefited by private equity firms in the country in past few years. Here is how private equity deals are done in most countries.  Leveraged buyout In the case of “Leveraged buyout”, firms use their leverage or borrow their money to boost their returns. The firm usually borrows money from the banks or other lenders and l...

Private equity is a process of investing and acquiring ownership in companies so that they can get high investment returns in the future. It is a source of investment capital for high net worth individuals. Investors that are partners with private-equity firms raise funds and manage money to get favorable returns from their shareholder clients. Investors raise real estate funds to develop new products, technologies, and working capital.     In past few years, private equity firm in India has been top performers at accounting and various law firms, which is why they have been able to successfully attract best corporate globally. Equity investors in India have competent legal skills to support transaction work in order to complete deals and translate their advisory work into company’s management portfolio.   There are two major functions of any private-equity firm. First is transaction execution and the second is portfolio oversight. Deal origination o...

Real estate in its traditional sense falls in two categories ownership interest where the title can be transferred to another investing party with the full risk attached to the asset and leasehold interest where the rightful owner leases the property to the investing party without transferring the risks. But in investment finance sense, it is an asset class consisting of investment in property through debt and equity. Private Vs Public Markets The decision to invest I real estate has two fronts. Number one is deciding on the kind of exposure you are willing to accept. You can either invest in public markets or in private markets which are dominantly done through private equity funding organisations like Everstone Capital. Type of exposure determines the returns you are likely to receive and the risks you might face against your investment. Private markets are more stable as cited by some experts but that is all subjective as no statistic has been able to substantiate that. In ...

Investing idle money in various sources is always a good idea for those who want to utilize their earnings, as the saying goes nothing makes more money than money. Returns from the investments can keep you afloat in tough times to help pay the bills. 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 in the first place. According to a recent survey, 4 0ut of 10 investors don’t know how their portfolio is split between equities, bonds and other investments; let alone talking about spreading it. 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?  Here are some options to efficiently spread the risks: Real Estate: A real estate fund is a professionally managed portfolio of di...

Popular culture has put investing as a very complicated activity, one which always requires expert advice keeps beginners incapable of making profit. To put it out in simple terms, investing is making your money an entity which controls your gains and losses so that you don’t have to put most of your time in it. There are plenty of investing options like stocks, bonds, mutual funds, real estate, and all except real estate don’t require huge loads of money.  Finding a source for finance Stepping into the world of investing without calculating your finances will keep you in a zone of obscurity. Assess your assets and calculate how much expenditure goes out in ways of rentals, loans, credit card bills etc. Contrary to the general notion, you don’t need a large sum to start-off. Studying the basics Like mentioned above, investing is not an activity only experts can do. Though, a basic understanding will help you a lot. Terms like real estate investment, private equity , mutua...

A hedge fund somewhat resembles a mutual fund, but has a number of peculiarities that one needs to understand. Hedge funds employ various strategies that are not usually found in case of mutual funds. The term "hedge" can be misleading for a common man. A hedge fund is actually hedged, for example, a fund involving a long-short strategy would select the most profitable securities for purchase and the least profitable ones for short sale. A hedge fund may be in the form of a real estate fund. India is a growing economy so there are foreign investors willing to invest in hedge funds in the country. There are many different strategies that can be adopted to get a better return on the capital you invest. Some basic strategies that an investor should know are: • Convertible Arbitrage- This is a long-short equity strategy. Instead of buying stock in one company and selling short the stock of another, convertible arbitrage buys convertible securities, usually convertible...

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...

Investments are made with the aim of earning a profitable return on it. Most popular investment is in the stock market, a place which is variable and unreliable. There’s too much reliance on the stock value and the interest rate of the bond. Thus real estate investments are more lucrative especially in the fluctuating market because there you don’t have to rely on a single profitable source. Here are some reasons for why should invest in the real estate soon. Rent assures a constant income Rent is the equivalent of dividends earned from stocks. The income become fixed and can only be risen as the rent is hiked. The percentage of return is also higher than that of dividends. Risk factor is considerably lower because the real estate market tends to stay constant. Yes, there are bad days too, especially relying on the property class and area, but that doesn’t mean the rent would be lowered. Inflation does not give headaches Inflation is one thing which is a part of every investor’s ...

The real estate has been creating a lot of buzz in the Indian investment market. It involves the buying and selling of the real immovable properties such as land and buildings. And while we talk about land and buildings, we’ve got to include the air above it and the materials (e.g. Plantation) on it! The buzz is partly because of the immense capital growth opportunities and partly because of the ease involved in its management. Some of the investors believe that with an association with Top Real estate in India , you do not even require a secondary source of income to depend on.  Further, some people find it way too better than the corporate jobs and some of them even leave their high-package employments to enter into real estate, especially into the growth capital in india. Here’s a list of reasons why a real estate business indeed is better than a typical corporate job. •    It’s a real time business: Real estate is a real business where you work...