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Private Equity Funds

Private equity (PE) funds have gained immense popularity in the past two decades. Top PE firms form these PE funds through the general partnership route. The corpus gathered by PE funds is investedmajorly in numerous private companies that possess high growth potential. Following are the two major investment criteria for PE funds:

  • General: PE funds with a general investment criteria tend to invest their corpus in different industries, which gives them the benefit of diversification.
  • Specific: PE funds with specific investment criteria tend to invest their corpus in specific industries.

The best part about PE funds is that they tend to stay invested for a time horizon of around 10-12 years and closedown upon completion of this period by distributing the funds among all its limited partners. Thus, the investment horizon followed by PE funds is medium to long term while staying committed towards the investors until the exit. Moreover, as a funding option, PE funds provide you with a strong and flexible capital base that could help you achieve your growth plans and potential. The good part about PE funds is that they provide you with greater cash flows.This is largely because repayment of capital, dividend, and the interest paid are all customized to the needs of your company based on the amount you can afford to repay.

One of the best things about PE funds is that they tend to support companies that run into business difficulties.Thus, if your company goes through a bad phase, the PE fund that has invested in your company will provide you with all possible help to turnaround your business and make it profitable. PE funds are your true business partner.They not only share the rewards that they get when your business runs successfully, but also sharetherisks that your business faces while helping you withtimely advice.

India has emergedas an increasingly popular destination for PE investments in the past few decades. A stable and policy-oriented central government led by Prime Minister Narendra Modiextendedand increased the credibility in the India growth story, especially in PE investments. Young demographic dividend,rising middle class population, and higher disposable income have helped India capture the attention of top global PE funds to park their funds in India.

The fact that India has positively withstoodmany global headwindssuch asdemonetization, Brexit vote, or Trump winning US Presidential elections amply testifies the ability of the Indian economy to veer its way through trying times.

To know more about PE funds as an investment option in emerging nations such as India, call: 022-28583333 or write to us at: www.altsmart.in

Nucleus House, Saki Vihar Road, Andheri (E), Mumbai - 400 072.


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