The basis of Private Equity investment is a direct investment into a firm- often to gain a significant level of influence over the firm's operations. Private equity is equity—ownership or an interest in an entity—that is not publicly listed or traded. The underlying motivation for such commitments is, of course, the pursuit of achieving a positive return on investment (ROI). Partners at private-equity firms raise funds and manage these monies to yield favourable returns for their shareholder clients, typically with an investment horizon between four and seven years.
Companies use private equity investment to strengthen and develop in ways that traditional financing cannot provide. Private equity investments can span all stages of a company’s life cycle.
Does your business need additional capital? A vital responsibility of every business owner is ensuring that you have capital at hand to support growth, innovation, day-to-day operations and maintain a reliable supply chain. As such, it’s an aspect of running a modern business which cannot be overlooked. If Private Equity is the route you’re considering it’s vital that you fully understand what’s involved and how it may affect your business in the long run. So, in order to make an informed decision, that’s where we come into picture.