Private Equity (PE)
Private equity as an asset class comprise equity securities, stocks in companies that cannot be publicly traded. Capital for private equity is raised to fund start-ups, make acquisitions and strengthen the balance sheet of SMEs going through business buyout. Private equity provides long term, committed share capital to help unquoted companies grow and succeed.
- Long term nature removes short term market swings concern
- Generate attractive returns
- Portfolio diversification
Venture Capital Fund
Businesses that are looking forward to meet startup expenses, expand and reach quickly can invest in venture capital. Venture capital, a type of equity financing is raised to meet with funding needs of entrepreneurial companies irrespective of size, assets and stage of development.
Venture capital fund typically focuses on:
- Startup, high-growth companies
- Invests equity capital, rather than debt
- Takes higher risks in exchange for potential higher returns
- Has a longer investment horizon than traditional financing
- Actively monitors portfolio companies via board participation, strategic marketing, governance, and capital structure