Understanding Private Equity (PDF)

BENEFITS OF DOCUMENT

1. Provides an understanding of private equity.
2. Provides an understanding of private equity structures and tax issues to consider.
3. Helps you understand the characteristics of good deals.

DESCRIPTION

This product (Understanding Private Equity) is a 27-page PDF document, which you can download immediately upon purchase.

Private equity is an "alternative investment" asset class. It refers to investments in companies that are not traded on a stock exchange. Venture capital is a specific strategy under the private equity umbrella which generally focuses on investments in startups.
Other private equity strategies include growth equity, which involves investments in more established, growing companies, and buyouts, which refer to investments in mature, usually publicly traded companies, to take them private.

PE investments are usually organized through a fund. The fund manager, called the general partner, raises money from external investors, which are called limited partners. The general partner then also invests some money into the fund.
In this presentation. I define private equity (PE), explain the private equity fund structures, tax issues in a private equity structure, tax aspects of acquisition structures. In addition, a bonus topic on Private equity flow from set up to exit as well as how private equity works, fees and carries interest in PE's and the characteristics of good deals.

A PE house is a management company that gets paid a fee from the fund for managing the investments. It uses this fee to pay for staff salaries, office rental etc. Learn more in the document.
This presentation contains educational information, including, but not limited to, definitions, demonstrations, practical experience, insights and illustrations. Although the author, Wambua believes that the insights and opinions reflected are reasonable, educative and contribute to the body of knowledge in M&A field, no assurance can be given that such opinions will prove to be correct and may not be viewed as professional advice.

Important care should be taken when relying on the information here and may not be construed as professional advice. For any professional advice, please engage a professional. No part of the information contained herein, shall be taken to constitute a professional advice and must not be relied upon in any way in connection with any investment decision. Wambua undertakes no obligation to update any information.

Source: Best Practices in Private Equity PDF: Understanding Private Equity PDF (PDF) Document, Wambua Mutua