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| Tall buildings Photo by Sean Pollock on Unsplash |
Zac Barnett, an attorney and debt advisor, provides debt placement advice fund sponsor clients on a variety of topics. Private equity funding is one of the many topics Zac Barnett covers, and in the attorney's many years of experience, he has represented both lenders and borrowers in these transactions.
Private equity funds are investments made up of shares that are not publicly traded or listed on the stock market. Private equity is usually made through a fund or firm and typically occurs as the result of a buyout of a public company that goes private.
Investors use private equity firms/funds for a number of reasons. The funds are used to:
- raise capital for mergers and acquisitions,
- stabilize the company’s balance sheet,
- raise money, and/or
- begin new projects.
The money that is raised is contributed to accredited investors (private or institutional).
Private equity funds can work to the investor’s advantage because they generate a lot of money, becoming financial powerhouses in one of two ways. Private equity firms raise money by buying struggling companies, turning them around, and/or restructuring them. Alternatively, pension funds invest in private equity funds to see a large return on their investment. Either way, private equity funds become influential in determining company policy.
Private equity funds are investments made up of shares that are not publicly traded or listed on the stock market. Private equity is usually made through a fund or firm and typically occurs as the result of a buyout of a public company that goes private.
Investors use private equity firms/funds for a number of reasons. The funds are used to:
- raise capital for mergers and acquisitions,
- stabilize the company’s balance sheet,
- raise money, and/or
- begin new projects.
The money that is raised is contributed to accredited investors (private or institutional).
Private equity funds can work to the investor’s advantage because they generate a lot of money, becoming financial powerhouses in one of two ways. Private equity firms raise money by buying struggling companies, turning them around, and/or restructuring them. Alternatively, pension funds invest in private equity funds to see a large return on their investment. Either way, private equity funds become influential in determining company policy.
