PE Fund Guide & News

In the recent times the safest way of investment is the investment in private equity. Private equity has been pre existent since a long time as the investments were made in this format in all the companies. However, in the last few years it has turned out to be the best medium of investment as this proved to be a risk free and beneficial mode of business. Numerous private equity funds firms have come up in the recent ties who solely imply the importance of equity by purchase sale and investment in only this format. There are various kinds of private equity funding investment in India for different kinds of businesses. Leverage funding is the most common kind of funding in India as most of the private equity firms thrive on this kind of investment. The most general way of buyouts in order to take the control of the company in the hands of the firm. The equity firm may invest in the company to buyout most of the portion of it  with a little bit of investment from them and...

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:...

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...

Often termed as the safest bet in investment business, real estate business can bring a lot of profits if done right. They are safer than shares, bonds, mutual funds or debentures which are subjected to market risks. Here are a few elaborated reasons why real estate investment is the smartest move. India is ready for investment business Growth capital in India has proved to be an excellent and reliable source of profit. Property prices have seen an upsurge in the past 5 years, and will continue to go higher as predicted. The sector might have seen some downfall due to demonetization but likely to pick up the pace once again.   Can be used for commercial or personal purpose A property in the form of a land, building, flat or office space provides a steady stream of income if not used for personal purposes. By renting it out you can yield maximum benefits, and this proves to be more beneficial if the property is in a posh colony. Renting out the property a...

Even those who are working in real estate business market for long time, find it hard to understand private equity investment. One must be highly aware of what it is all about and what it entails before investing because a wrong move can lead to big losses. To make it a bit clear, private equity is all about raising funds for a company with no obligation of having to pay back the dividend to shareholders. The concept of private equity is vast and complex, though through good research and understanding, one can make some good investments. Here are a few points to keep in mind while making some investments in real estate India . Read on to know more.      Know the company well before making investment Before investing in growth capital India , ensure that you know the company well. Consult regular reports and enquire about cash flows etc., take note of the audits as well. Cross check for your safety as it is a prime concern. You can’t let your funds ...

The real estate market functions on a cycle and having some information on each phase will be a great benefactor to investment decisions. You’ll also have a good idea on the possible risks with every transition. There are several advantages of commercial real estate that are special. Investors can invest across all the phases of the cycle. With some research you can make out whether the market is descending or close to a transition etc .  Private equityand real estate investment  are two very different classes. The holding periods, return expectations, capital improvement timing, exit strategies are examples that can help you make informed decisions. Do you research on the following phases of the real estate cycle. Recovery The spatial demands are low and the velocity of leasing the property is minimal. This affects the occupancies at best. The rents are at a low and new projects are unlikely to be undertaken during this phase. The guise of recession makes...

Many people talk of private equity and its implications, but only a few understand what its actual meaning. Private equity basically stands for the equity that is valid only for private companies and cannot be traded publically. Due to regulations these equities cannot even be listed publically. Private equity funds are therefore made of several firms that invest directly in private companies or entities at varied stages. Even foreign investors go for private equity investment in India for private equity funding and investing because investing in private and future companies with a stellar business and revenue model maximizes the return on investment. It is best to capitalize in growing companies that have the potential of making it to the Initial Public Offering. Private equity firms are divided into two types on the basis of investment strategies- venture capital investments and leveraged buyouts. Let’s understand them in a bit more detail. Venture capital invest...