![]() I had the pleasure of working with most of these firms to do just that. All of these firms focus on value creation to make their investments work for their money. Some of the best performing Asia Private Equity funds are Affinity Equity Partners with Asia Pacific presence, MBK Partners with North Asia presence, and Navis Capital Partners with Southeast Asia Presence. ![]() Some of the well-known global blue-chip funds are KKR, The Carlyle Group, Bain Capital, TPG, CVC, Blackstone Group, Morgan Stanley Capital Partners, Goldman Sachs Capital Partners, and many more. Larger PE funds also have a global footprint with funds allocated to invest regionally or globally. Assets under management or AUM can be two to four times this size. In the U.S., these types of funds can be as small as $500 million to $10 billion in investment capital. On the other hand, many large private equity funds invest in buyouts with control and growth capital situations. Others only do growth capital with a strategic minority or take the second-largest shareholder position to the benefit of not having the responsibility of driving the investment, but rather to provide capable management to run the course of the business, allowing PEs to focus on financial advice and strategic support. Some PEs focus mainly on control buyouts. Some specialize in one or more industries and others are industry agnostic. There are several types of private equity funds. Furthermore, PE firms seek no bad deals, while VC firms expect some or many to fail and hope that few would become a unicorn, deals that would be valued over a $1 billion. In addition, PE and VC are fundamentally different in number of deals they do and the size of capital they commit to each investment. VC is in investment size and level of risk taken on each investment. Both VC and PE firms work with private capital investing in companies, add value over time, and exit investments through private sale or IPOs, public offerings. ![]() As you have met with both PE and VC managers, you now see that the difference is becoming clearer. You had been confused at one point, not realizing that PE is actually different from VC. As you are shopping for capital, here are the similarities and differences between PE and VC investment management and how they add value to our private capital market landscape and the global economy. Whether you are interested in this side of the business as entrepreneurs and CEOs seeking capital or as investment managers seeking to expand your investment management franchise, they are two different type of businesses. PE and VC investment management businesses offer investors different types of return on capital using unique risk profiles in long-term illiquid assets. You suddenly realize that you are being presented with two similar, yet different types of capital sources.
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