123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Different Approaches For Investment In Private Equity

Profile Picture
By Author: William King
Total Articles: 365
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Private equity is the capital of a company that is not for sale for general public at stock exchange. Equity securities are privately owned by the owner(S) of the company and they are not publicly traded. Investment in Private equity often involves huge amounts, which is why normally investment organizations like investment banks or mutual funds carry out these investments as an entity. Private equity investors often acquire a company, even if they don't get the complete ownership of the company, they still hold enough shares to be actively involved in the management and company decisions. That's the key thing about holding private equity, that you can be instrumental in the company decisions.

Leveraged Buyouts:
The most common investment made in private equity is a leveraged buyout, in which the investor acquires considerably large number of shares in some company, with an amount that is mostly borrowed from small investors. The investor in this case can be some private equity firm or even the manager of the company (who will purchase private equity to have power over the business that he/she has been managing ...
... so Far. It is also known as management buyouts. A rarity in the past, leveraged buyouts occurs quite often now days, as more and more institutional investors raise funds to purchase the majority of shares in some operating business. These investing companies then take drastic steps to improve the performance of the business after acquiring control over the business, however leveraged buyouts are not always successful and collapse as often as other businesses.

Distressed Securities:
Any kind of investment in a bankrupt company (or a company that is about to go bankrupt) is called distressed investment (so it's not the investor who is making some distressed investment decision). These securities are often valued at a lower price than the original value. By nature, it is a risky investment; therefore it has to be handled by experienced investors and not the starters.

Investing as Venture Capital:
Venture Capitals are raised to support big business start ups, Venture Capital is a pool of cash that goes around looking for entrepreneurs with sound business ideas. Entrepreneurs have to rely on Venture Capital when the required amount for start up is too large to be raised by any other mean. Though it means less control for entrepreneurs, still it helps them getting started and executing the idea that has been haunting them for some time.

William King is the director of UK Wholesale Suppliers, Distributors, Dropshippers & Manufacturers: http://www.wholesalepages.co.uk , Wholesale Trade Suppliers, Dropshippers, Distributors & Manufacturers:http://www.dailytrader.com and China Wholesale Suppliers, Distributors, Dropshippers & Manufacturers: http://www.dailytrader.com/china/ . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

private, equity, investment, leverage, buyout, forms

Total Views: 257Word Count: 467See All articles From Author

Add Comment

Business Articles

1. How Global Trade Finance Facilitates Cross-border Transactions And Reduces Risk
Author: Riddhi Divan

2. Innovative Uses Of Nickel In Cryogenic And Marine Environments
Author: Online fittings

3. Implementing Predictive Analytics In Your Abm Toolkit
Author: SalesMark Global

4. Comparing The Top 5 Live Commerce Platforms For 2024
Author: Amy Williams

5. Data-driven Precision Marketing For Effective Demand Generation
Author: SalesMark Global

6. Supercharge Your Sales With Optimized Pipeline Velocity
Author: SalesMark Global

7. Best Japan Tour Packages
Author: bharathi

8. Adani Group Stocks Down 20%; Gautam Adani Indicted In Us Over Bribery Charges
Author: Bizzbuzz

9. High-performance Ss Round Bars: Addressing The Energy Sector's Needs
Author: Neelkamal Alloys LLP

10. The Role Of Modern Washroom Solutions In Maintaining Cleanliness
Author: ritika krishna

11. Why Choose Premium Taxi Services In Kochi?
Author: maya

12. Black Magic Astrologer In Kasaragod
Author: Sripandith05

13. The Health Benefits Of Adding Pineapple To Your Pancakes
Author: maya

14. Top Luxury Resorts In Kerala For Your Dream Vacation
Author: maya

15. How To Start Your Shopping Website In Doha: A Simple Guide
Author: maya

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: