Venture capital and private equity investments are long term financing alternatives in which business risks are shared out through partnerships between managers and entrepreneurs, in order to add value to target companies. The manager injects capital and professionalizes the company, in order to sell off its stake at just the right time, taking a profit. Investments may be allocated to any sector offering prospects of dynamic growth and high profitability over the long term, depending on the investment focus defined by the investors or funds. While venture capital is related to start-up enterprises, private equity is linked to mature companies that are restructuring, consolidating and/or expanding their businesses.
Way beyond capital ....
- Venture capital and private equity fund management:
- Adds appeal and expertise, spurring rapid corporate growth and sustainability.
- Professionalizes the company.
- Maximizes corporate value (managers are highly experienced and generally work on the administration side).
- Applies key corporate governance practices, upgrading management quality.
- Enhances corporate credibility and burnishes the institutional image of the enterprise.
- Underpins the future sustainability of the business.
- Paves the way higher status on the market where the company operates.
- Transforms the company, endowing it with a keener competitive edge, ready to enter global markets.