Private Equity is a type of alternative investment that invests in or acquires private companies. They are not listed on a public stock exchange. Not all the investors could access to them.
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What Can You Do with Private Equity?
Who Can Participate?
How Do Private Equity Firms Make Profits?
【Private Equity Interview VIDEO】LENO × TUNE CAPITAL
1.What Can You Do with Private Equity?
There are so many possibilities you can do. Please see below for some more ideas.
– Utilized to fund new technology
-Make acquisitions
-Expanding working capital for a business a bolster
-Solidify a balance sheet.
In general, this investment is based on underwriting or acquiring unlisted shares from unlisted companies, significantly increasing the corporate value of the investee over the medium to long term, and then selling the shares held through IPOs or third-party transfers to earn a profit.
2.Who Can Participate?
Accredited investors and institutional investors, who can dedicate substantial sums of money for extended periods can participate. Long holding periods are often required to ensure a turnaround for distressed companies or to enable liquidity events such as an IPO (Initial Public Offering) or a sale to non-private company.
3.How Do Private Equity Firms Make Profits?
The primary source of revenue for private equity firms is management fees. The fee structure includes a management fee and a performance fee. Some firms charge X% management fee annually on managed assets and require X0% of the profits gained from the sales of a company.
Here is an interview from one of our customers. We hope this video will give you an idea of what we can offer.
