Private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. Investments in private equity most often involve either an investment of capital into an operating company or the acquisition of an operating company. Capital for private equity is raised primarily from institutional investors. There is a wide array of types and styles of private equity and the term private equity has different connotations in different countries.
Among the most common investment strategies in private equity include :
- venture capital – to finance start-ups,
- growth capital – to assist a company in its expansion plans,
- leveraged buyouts – to facilitate the acquisition of an unlisted company by management,
- distressed investment – to help an unprofitable company improve its operations to attain profitability.
Our activities are focused on growth capital which is most often a minority investment in companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business. These companies will often do so in order to finance a transformational event in their life cycle. They are likely to be mature and generate revenue and operating profits but unable to generate sufficient cash to fund major expansions, acquisitions or other investments.