INVESTMENT STRATEGIES

Private Equity (PE)

Private Equity is a type of equity and one of the asset classes consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange.

A PRIVATE EQUITY INVESTMENT WILL GENERALLY BE MADE BY A PRIVATE EQUITY FIRM, A VENTURE CAPITAL FIRM OR AN ANGEL INVESTOR. EACH OF THESE CATEGORIES OF INVESTORS HAS ITS OWN SET OF GOALS, PREFERENCES AND INVESTMENT STRATEGIES; HOWEVER, ALL PROVIDE CAPITAL TO A TARGET COMPANY TO NURTURE EXPANSION, NEW PRODUCT DEVELOPMENT, OR RESTRUCTURING OF THE COMPANY'S OPERATIONS, MANAGEMENT, OR OWNERSHIP.

Growth capital

Growth Capital refers to equity investments, most often minority investments, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a major acquisition without a change of control of the business. Companies that seek growth capital will often do so in order to finance a transformational event in their life cycle. These companies are likely to be more mature than venture capital funded companies, able to generate revenue and operating profits but unable to generate sufficient cash to fund major expansions, acquisitions or other investments.

Venture capital

Venture capital or VC is a broad subcategory of private equity that refers to equity investments made, typically in less mature companies, for the launch of a seed or start-up company, early-stage development, scale-up company or expansion of a business. Venture investment is most often found in the application of new technology, new marketing concepts and new products that do not have a proven track record or stable revenue streams.

Entrepreneurs often develop products and ideas that require substantial capital during the formative stages of their companies' life cycles. Many entrepreneurs do not have sufficient funds to finance projects themselves, and they must, therefore, seek outside financing.