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A Guide To Raising Private
Equity |
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Meeting the
investment criterion |
A balanced and
experienced management team.
(2) Past track
trading record of a business, as a guide to future
profitability.
(3) The
assessment of the business future prospects will
determine their investment terms.
(4) The exit
timeframe for a typical venture capital investment
is around 3 to 7 years maximum. |
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Matching the fund
to the proposition
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Given
Private
equity deal sizes continue to rise with the majority
of private equity firms seeking minimum investments
of £2 million.
(2) Most
private equity firms will not invest in early stage
opportunities.
(3) Most of
the generalist private equity firms aim for a
balanced portfolio across sectors, but prefer high
growth sectors.
(4) The
investment management approach of most private
equity firms is "hands-off", leaving the day to day
control of the investee company with the management
team.
(6) Long
established and family owned companies may find
venture capital to be a "bridge too far", given the
need for many private equity funds to achieve a
medium term exit. |
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The fund-raising
process
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(1) The role of
the financial adviser is to advise on the types of
funds, the mix of funds and the best providers of
those funds for the investment opportunity.
(2) There is no
"right" business plan – the key is to produce a
document that encourages the reader to invest, after
carefully balancing all the risks and opportunities. |
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Download A Guide to Raising Private Equity |
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