What is PE Fund?
Private Equity is an alternative mode of financing which is for investors who invest in private companies. Private Equity fund is normally use in funding private companies for expansion, growth, new technolgy, acquisitions, expanding working capital and bolstering balance sheet of the companies.
How companies benefit from Private Equity Fund:
“They usually purchase a controlling share in a company, bring in a combination of debt and equity, and manage the company in a way meant to increase its worth,” explained the New York Times. “Ideally, everyone profits when the company is sold, including the former owner, who gets a slice that is worth more than the original pie.”
Types of Private Equity Fund:
Venture Capital (VC)
Buyout / Leverage Buyout