What is private equity?
Private equity is an investment into a private company that is not listed on any public exchange. These investment opportunities are not normally on offer outside of large institutions. However, due to the raise in awareness driven by the popularity of Angel Investing, many more investors are seeking out private equity investments.
Traditionally, private equity investment opportunities have only been accessible by large and wealthy funds. Many private investors would only find out about potentially highly profitable deals after they had closed.
We want to change that. We offer our private equity investment options to all eligible investors, find out more.
How does private equity work?
Private equity is a relatively simple concept to understand. An investor finds a company seeking investment, they analyse the business proposition, decide if their investment can help the company meet its goals and either invest or walk away.
The investor will be kept up to date on the status of the company so they know how their investment is being put to use. This may be an email newsletter, annual report, conference calls or physical meetings.
When the investor wants to take their capital out of the business, they sell their shares.
Private equity investments tend to be illiquid because the holders of the stock need to find a new buyer of their stocks. This normally happens either by an IPO and listing on a public exchange, by a management buy-out or takeover by a competitor.
The real skill in private equity investing is identifying potential investments, analysing them and picking the right company to invest into.
Is private equity an alternative investment?
Yes. An alternative investment is an investment which isn’t one of the 3 traditional assets, these are stocks, bonds and cash.
How can I find suitable private equity investment opportunities?
Finding suitable private equity investments can be a long and time-consuming process. You could spend weeks or even months analysing a business before finding a skeleton in their closet and having to walk away.
Or let us do the work for you.
We have a panel of companies which we have analysed, met the founders and already invested in. These companies are in exciting and profitable industries, have experienced founders with impressive track records and their core business model is valid. To access these company’s executive summaries, please follow this link.