PE Fund Guide & News

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 ...

One of the reasons that private equity firms, back certain companies, is if they feel, that the company has potential, and with the right resources, it can achieve good success, enough for the firm to get back their investment, and also earn profit in the future from. With investments schemes ranging from the Indian real estate, both commercial and industrial, credit and more becoming popular, out of them all, private equity firms are more valuable than ever. Now, the use of private equity funds in India is getting a lot of recognition, for their immense use and the way they are able to help struggling businesses turn back around. These PE firms help a business get back on its feet, by putting time, energy, resources and capital, and help them become legitimate success in their fields. But, before anything, PE firms are more about management, rather than the companies itself. They feel that it is very important that the right management team should be there that can co...

We all know that private equity investment is like an umbrella where investments are made in different types of private companies. These private companies come up with different types of risks and offer different types of returns. Although the umbrella covers a wide number of firms, investment stills calls for the need of strategies while investing in private equity because you don’t want to bet all your hard earned money so casually. PE funds in India comprise of various stages of investment which require smart selections. Some of the elements of private equity strategies are as follows: •    Stage of investment: It is based on how long has a company been in the industry. You must have heard of the IPOs (Initial Public Offerings) generally known as venture capital. And then there are buyout companies which are mature companies and are generating cash flow already. •    Geography: It is based on what geography to target while investing in p...

Private equity in absolute terms is a means to invest in a type of asset which is not generally publically traded and even if it is public it is traded with the intent to make it private. Unlike other market variables like stocks and bonds amongst other, private equity formation takes place in the form of assets which are not liquid (companies).  By buying companies the private equity firms ensure an access to their revenues and assets thereby having high return on their investment for the future. The transaction of their firms is highly dependent on debt which is usually in the form of high-yielding bonds. With the inclusion of debts to their finance acquisitions, these firms ensure an increase to their financial returns.  This debt which has a fixed cost to it is a great way to have high returns plainly because with the high return on this investment, the profit is directly affected after the sale of these fixed cost debts. Having understood the way p...

Some of the globe’s top Private Equity firms have gone in losses by raising Private Equity funds in India, reason being administration issues in investee companies. On top of so many unsuccessful investments made between the years 2005 and 2008, the private equity investors were not even given adequate and their due post-investment rights. The matter further worsened because of poor reporting to  private equity funds in India as well as investee firms’ languid attitude towards investing in systems, procedures and controls. So what are the lessons that Private equity firms have learnt by investing in India? Top professionals from the field list some out for us: Know your company Prior to investing, make sure that the performance of a company is in line with what’s projected by it. The executive might cite excellent results and share price might also seem to go up just before the PE investment is made, however there is no guarantee if the speculated evaluations ...

Private equity investing, largely attributed as “investing in securities through a negotiated process” is fast emerging as the alternative to investment in the institutional framework. Private equity calls for a specific and a specialized skill set which largely accounts as the diligence area for investor’s assessment of a manager. There has been a spurt in the spectrum of investors in private equity because of the need to rapidly include different types of investors to adhere to the long term commitments to the asset class. The commitments enable the investors to seek a level of geographical diversification in their private equity portfolios. The fundamental reason for investing in private equity funding is to improve the possibility of risk for investing in private equity offers an opportunity to generate higher absolute returns to the investor while also improving upon the portfolio diversification. Inflation results in an escalating focus on growth stocks. A...

It’s been observed that contrary to earlier days, wherein majority was not familiar to aspects of the financial world, nowadays sea difference is witnessed. These days, financial world is attracting hordes to its shores and contrary to the early years, when all that a person would know is depositing and withdrawing money from his savings and/or current account, things have now changed. Now regardless of the genre a person is in, anyone and everyone prefers to invest money in shares and debentures. Seemingly, the chain is being joined-in by hundreds and thousands of investors every day. Apart from shares and debentures, there’s a lot that’s there in the market, which unfortunately not everyone is familiar to.   In follow up of the write up here’s I’m considering loopholes of private equity acquisition.       Private acquisitions are usually prompted in conjunction to a seller’s desire when he has to do away with the company, other than a buyer’s desir...