Believe it or not, Private Equity Investments cover a variety of different investment opportunities for businesses looking to start, expand or invest in an overseas operation. Because of this, we decided to break down Private Equity investments and the many different forms of capital that they include.
Venture capital is one of the most recognized forms of private equity investments. These forms of capital are gained as a means of investing in a particular business. Because of this, it is essential to note that there are a variety of methods to obtain venture capital. These can range from grants to campaigns and are one of the best practices to build capitol.
Leveraged buyout is a good description for buying out a portion of a business. This is usually done to expand the company as a whole or to gain the necessary funds to do so. However, these types of buyouts require a lot of time and negotiation before a final deal can be done.
Growth capital is a specific form of financing where a business is looking to grow or open up another store elsewhere. Because of this, they are looking for a group of investors to back their expansion with the promise of repayment and a certain percentage of the projected profit over time. However, there are equally as many negotiations that go into these types of investment opportunities. Because of this, there is more than oneway for these forms of capital to be obtained.
Purpose Business Restructure
This type of private equity investment is specifically for internal business structure. These types of investments are used to replace or upgrade machinery or to restructure the method with which a business operates.
Because of this, a substantial amount of funding is needed to identify these changes and to make sure that they are done correctly. However, these types of investments can also be used to add buildings to an existing site or add a department that the company lacks.
Even though these are not all of the investment types that are included within private equity investments, these are the main types of investments one is lead to think of when the term private equity investment comes into play. Therefore, it is essential to become familiar with these key investment opportunities and know which type of investment is best for your goal.