Private Equity
Private equity investors are private individuals or groups who contribute debt and equity capital to small and mid-sized companies. Typically, private equity investors are successful businesspeople that offer expertise, experience, and contacts which can be invaluable to a growing business.
Private equity investors focus on both the quality of the management team as well as the potential of the business to grow. Although the expected rate of return is high, the process is generally simpler than traditional funding sources such as venture capital.
When approaching private equity investors, have an exceptional business plan in place so you can represent your business effectively. Include details on how the money will be paid back and how the investors will earn adequate returns. Having a good plan is extremely important to the overall success of your funding efforts.
During the past few years, Key Consulting has served as both an advisor and investor in successful private equity investments. The companies had exceptional potential, but needed additional capital to reduce debt and fund growth opportunities. Equity funding is available, and we are constantly seeking investment opportunities.
Why Private Equity Investment?
- Expansion Opportunities
- Raising Debt and Equity Capital
- Diversification of Personal Resources
- Funding Employee Buyout
- Reduce or Repay Debt
- Restructure Financially Troubled Businesses
- Transition to New Ownership or Management
Sources of Private Equity
- Private Equity Firms
- Individuals
- Family Based Investment Funds
- Employees (Individual or Groups)
- Successful Business Owners
- Business Professionals
- Small Business Investment Companies
- Commercial Banks
- Insurance Companies
- Financial Institutions
Raising Private Equity
- Developing a Business Plan
- Establishing Equity Values
- Setting Expectations
- Establishing Future Priorities
- Role of Debt Financing
- Management vs. Ownership Role
- Raising Future Capital
- Exit Strategies
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