Firstcall India focuses its private equity activity in industries and geographies where it perceives a significant investment opportunity and where it possesses strong capabilities, proprietary deal flow and an excellent reputation

Private Equity Overview

Private equity has become recognized as an asset class that offers potentially high returns, somewhat higher risk and diversification from a more traditional portfolio of marketable securities. As a result of these potential benefits, many investors have made LBO and VC investments a mainstream component of their portfolios.

Private equity involves the purchase of equity in a private company. Two of the most common private equity financing strategies are leveraged buyouts (LBO) and venture capital (VC). LBO investors specialize in financing the purchase of established companies by providing a management team with enough equity to make a down payment on the purchase of a business and then pay the rest of the purchase price with borrowed money, using the assets of the company as collateral for the loans. On the other hand, VC investors focus on, invest in and actively guide emerging growth companies in the start-up and/or expansion stages of development.

For any number of reasons, investing directly in a LBO or VC fund can be challenging-particularly for inexperienced individual investors and small- to mid-sized institutional investors. A private equity fund of funds offers an efficient solution by co-mingling the investments of many investors into a single pool and then assembles a portfolio of private equity funds.