EQUITY service that generally invloves highly complex financial transactions obtained from many large financial institutions for companies with very unique financing needs.
We provide end to end services for all stages for Private Equity clients, from Fund Raising to Investing and Managing the Portfolio, and finally Realizing Value. The spectrum of services enables Private Equity firms to better screen, evaluate, and manage investments. We offer private equity services in raising private equity and venture capital for the clients from appropriate funding agencies. We ensure proper structuring and presentation of the deal, establish feasibility of business model, approach and negotiate with private equity funds to obtain the best-possible deal.
Private equity is money invested in companies that are not publicly traded on a stock exchange or invested as part of buyouts of publicly traded companies in order to make them private companies. Among the most common investment strategies in private equity include leveraged buyouts (LBO), venture capital, growth capital, distressed investments and mezzanine capital.
We have arrangements for specific funds for specific industries. This in turns helps in reducing the turnaround times and also helps in closing the transactions rapidly.
The acquisition of another company using a significant amount of borrowed money (bonds or loans) to meet the cost of acquisition. Most of the time, the assets of the company being acquired are used as collateral for the loans in addition to the assets of the acquiring company. The purpose of leveraged buyouts is to allow companies to make large acquisitions without having to commit a lot of capital.
This strategy involves money being provided by investors to start-up firms and small businesses with perceived, long-term growth potential. This is a very important source of funding for start-ups that do not have access to capital markets. It typically entails high risk for the investor, but it has the potential for above-average returns.
Growth Capital refers to equity investments, usually 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 take on this strategy are likely to be more mature than venture capital funded companies, for instance they are able to generate revenue and operating profits but unable to generate sufficient cash to fund major expansions, acquisitions or other investments.
Particular circumstances involving a security that would compel investors to trade the security based on the special situation, rather than the underlying fundamentals of the security or some other investment rationale. An investment made due to a special situation is typically an attempt to profit from a change in valuation as a result of the special situation, and is generally not a long-term investment.
Mezzanine capital is a hybrid of debt and equity financing that is is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Since mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, this type of financing is aggressively priced with the lender seeking a return in the 20-30% range.