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Business investment: Copyright Private Equity
No CommentsAs we all know, private equity investments are part of the range of equity investment in all medium and large. It is dominated by investments in vehicles that invest in a structured way temporarily acquiring stakes in unlisted companies at various stages of their development, adding value for later sale or IPO. So we’re talking about investments that are not financial typical fixed income or equity in any investor, but hard-nosed business risk in the hands of managers allegedly specialized in it. But one of the problems which most proposals for investment in private equity to analyze no more than our due diligence is usually just that.
That is, many such vehicles are designed, created and managed by financial (or finances ) that have little or nothing to do with the world of business or industry. This departure from the business world becomes merely structured by injections of money to financial firms that sell to the highest bidder and little else. Adventures of capital to companies seeking alternative funding in exchange for pieces of a pie that allegedly should grow in exchange for such cash injections. Thus, when it comes to our analysts a proposed private equity investment designed and maintained by a team of industrial cutting and successful businessman, the matter becomes much more interesting.
If we are also talking about investing in dollars, in companies in one of the best venues expansive: China, companies are already leaders in their respective sectors, and whose products and services are sold in the Chinese domestic market (thereby affectations exports, the future evolution of the Yuan and / or recession in the West), our interest is increasing exponentially. To all this you need to add a management team Track Record dramatically in the previous two versions of private equity, carried out under the same parameters and the same partners, and an excellent product presentation and philosophy made by one of them personally.
We are therefore faced with a different investment proposition from the author. Specifically 4 authors (2 of 2 from Spanish and Chinese and American education also invested privately in the vehicle) with a profile multinational business and industrial success, and for some years applied their knowledge together in a private equity project and stepping into their third and brand new version. Also invested in enterprises that are under what is known as the Growth Capital business is ripe with products, services and consolidated profits have exceeded their powers so far, and are undisputed leaders in their respective sectors and shares market. Obviously all concepts far removed from the adventure capital. His philosophy is the preservation of investment and repayment thereof as soon as possible, with a forecast horizon (and previously managed) of 4 or 5 years. The management team is complemented by more than 25 people at its offices in Shanghai.
In short, a proposal that pleasantly surprised us and has exceeded all our analysis and due diligence. Therefore, we recommend an investment to some of our customers and which also invest (*), for its specificity and differences in the vast majority of proposals for private equity and venture capital. Rarely are all the circumstances to consider such investments recommended, I can assure you. A rarity in the world of private equity that nicely complements the assets of some of our clients.
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Published under: Business Investment; Tagged as: Business Investment, equity investment, multinational business
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