EquityList’s Post

Great slide to visually get a sense of the #privateequity players and the scale of #USA dominance. Currently, only 13% (2,790) of U.S. companies with over $100 million in revenue are public, which means there are over 19,000 private companies that could potentially offer investment opportunities…. If you’re eligible to get access? The number of public firms has fallen by roughly half since 1997, while the number of companies backed by private equity funds has doubled from 2006 to 2017.

Private equity involves investing in privately held companies or taking public companies private. Private equity firms raise capital from investors to acquire equity stakes in companies, often with the aim of restructuring, improving operations, and ultimately selling the company at a profit. Private equity investments typically involve taking significant ownership stakes and actively managing the companies to generate returns. This form of investment is sought after for its potential to deliver high returns, often outperforming public market investments over the long term. However, it also involves higher levels of risk and longer investment horizons compared to other investment options.

Private equity presents a compelling opportunity to expand your investment portfolio while enhancing diversification. Here are two types of private equity strategies: ✅ Buyouts: This is when a private equity firm buys a target company with the hope of selling it at a profit. ✅ Venture capital: This involves finding early-stage startups looking to raise cash in exchange for equity in the company. ✅ Secondaries: Purchase of existing interests from primary private equity investors. This allows sellers to gain liquidity and buyers to purchase an attractive investment. Need guidance on managing these investments or continuing to diversify your portfolio? Contact us at [email protected] or visit our website https://buff.ly/3hcjuTP to learn more. This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Fortune Financial Advisors, LLC in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Fortune Financial Advisors, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. #PrivateEquity #Investments #FinancialGrowth

Day 18: 𝗪𝗵𝗮𝘁 𝗽𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝗶𝗻 𝗽𝗹𝗮𝗰𝗲 𝗳𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘄𝗵𝗼 𝗵𝗲𝗹𝗽 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝗱𝘂𝗿𝗶𝗻𝗴 𝗱𝗶𝗳𝗳𝗶𝗰𝘂𝗹𝘁 𝘁𝗶𝗺𝗲𝘀, 𝗶𝗳, 𝗹𝗮𝘁𝗲𝗿 𝗼𝗻, 𝘁𝗵𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝘀𝘁𝗮𝗿𝘁𝘀 𝗺𝗮𝗸𝗶𝗻𝗴 𝗽𝗿𝗼𝗳𝗶𝘁𝘀 𝗮𝗻𝗱 𝗼𝗳𝗳𝗲𝗿𝘀 𝗺𝗼𝗿𝗲 𝗳𝗮𝘃𝗼𝘂𝗿𝗮𝗯𝗹𝗲 𝘁𝗲𝗿𝗺𝘀 𝘁𝗼 𝗮 𝗻𝗲𝘄 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗳𝗼𝗿 𝘀𝗶𝗺𝗶𝗹𝗮𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀? 𝘌𝘯𝘵𝘦𝘳 𝘵𝘩𝘦 𝙈𝙤𝙨𝙩 𝙁𝙖𝙫𝙤𝙪𝙧𝙚𝙙 𝙉𝙖𝙩𝙞𝙤𝙣 (“𝘔𝘍𝘕”) 𝘤𝘭𝘢𝘶𝘴𝘦. MFN clauses ensure that if a new investor secures more favourable terms for similar investments (as compared to existing investors) in the company, the existing investor will have the right to adopt those better terms. The rationale behind using MFN clauses is to ensure fairness among investors by preventing new investors from receiving more favourable terms. It guarantees that if better terms are offered to new investors, those terms will automatically apply to existing investors as well. For example, if 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗔 invests I𝗡𝗥 𝟭 𝗖𝗿𝗼𝗿𝗲 in 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗕 at a certain valuation and discount rate, and later 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗖 invests 𝗜𝗡𝗥 𝟵𝟬 𝗟𝗮𝗸𝗵𝘀 with better terms (e.g., a lower valuation and a bigger discount), the 𝗠𝗙𝗡 𝗰𝗹𝗮𝘂𝘀𝗲 will ensure that 𝘐𝘯𝘷𝘦𝘴𝘵𝘰𝘳 𝘈 𝘸𝘪𝘭𝘭 𝘢𝘶𝘵𝘰𝘮𝘢𝘵𝘪𝘤𝘢𝘭𝘭𝘺 𝘳𝘦𝘤𝘦𝘪𝘷𝘦 𝘵𝘩𝘦 𝘴𝘢𝘮𝘦 𝘧𝘢𝘷𝘰𝘶𝘳𝘢𝘣𝘭𝘦 𝘵𝘦𝘳𝘮𝘴 𝘢𝘴 𝘐𝘯𝘷𝘦𝘴𝘵𝘰𝘳 𝘊. Continued in comments.

Understanding first close,subsequent and Final close in Private Equity. 1. First Close What it means: The fund gets enough money to start investing but can still bring in more investors. Example: A PE firm aims to raise $1 billion but gets $500 million first. They start investing with that $500 million but are still looking for more investors. 2. Subsequent Close What it means: More investors join after the first close, adding more money to the fund. Example: After the first $500 million, new investors add another $300 million. This continues until the final close. 3. Final Close What it means: The fundraising is done, and no more investors can join. Example: The PE firm reaches its goal of $1 billion and stops accepting new money. Now, they focus fully on investing. 4. Rebalancing What it means: Adjusting the fund’s investments to spread risk or align with strategy. Example: If the PE firm has invested too much in technology companies, they might invest in other sectors like healthcare to balance things out.

In the rapidly evolving world of finance, staying ahead means investing in innovation. From fin-tech startups to established financial institutions, we’re here to help businesses navigate the future of finance. Explore how our tailored investment solutions can support your company’s growth.   https://lnkd.in/dU4ynkpU #FinancialServices #Innovation #InvestmentStrategy #Discala #ImpactInvesting #Investing #AdvisoryServices

Investing in unlisted shares, also known as private equity or pre-IPO investing, offers several benefits for long-term wealth creation: 1. _Potential for high returns_: Unlisted companies can offer higher growth potential than listed companies. 2. _Early-stage investment_: Investing early can lead to significant returns if the company succeeds. 3. _Diversification_: Adds diversity to a portfolio, reducing dependence on public markets. 4. _Long-term approach_: Encourages a long-term perspective, allowing companies to grow and mature. 5. _Active involvement_: Investors can play an active role in guiding the company's growth. 6. _Customization_: Investors can choose companies aligning with their interests and investment goals. 7. _Potential for exits_: Companies may go public or get acquired, providing a profitable exit. 8. _Tax benefits_: Investments in unlisted shares may qualify for tax deductions or exemptions. 9. _Innovation_: Unlisted companies often drive innovation, offering exposure to cutting-edge technologies. 10. _Personal satisfaction_: Investors can be part of a company's growth story, creating a lasting impact..!

Private equity firms are investment management companies that pool investor capital to acquire stakes in private companies. Through strategic management, they aim to enhance the value of these companies, then profit from a future sale or public offering. This graphic visualizes the top private equity firms in various countries, ranked by the amount of capital they raised over the past five years ending March 2023. https://lnkd.in/gmVUeeZy #top #privateequity #firms #investmentmanagement #companies #country #graphic

Smaller private equity funds are likely to do better than bigger ones. Why? Because they invest in smaller and mid-sized companies, which offer more chances for growth. These smaller funds also tend to be more successful because they have fewer competitors for deals and can focus more on helping their investments grow. Overall, smaller private equity managers have a better track record than larger ones. They're able to do this because there's less money available for them to invest, but more demand for their services. Newer funds and sponsors without funds also tend to be more motivated to succeed. They're not as reliant on a few big deals, so they work harder to make sure all their investments pay off. In short, smaller private equity funds have a better chance of making more money because they focus on smaller companies with big potential.

Companies are spending more time under private ownership and creating more value for private shareholders in the process. Read more about how investors are tapping into this opportunity.