Private equity funds invest directly in companies, primarily by purchasing private companies, sometimes seek to acquire controlling interest in publicly traded companies through equity buying.

Private equity funds appeal to HNI (high networth individuals). They are usually managed by a firm or a limited liability partnership. The investment horizon of such funds can be anywhere between 5-10 years with an option of annual extension. Private equity funds are focused on the long-term potential of the of invested companies.

Advantages and disadvantages of Private equity funding,

Does your business need additional capital? The answer is yes but problem is that capital often isn’t easy to get. The advantages and disadvantages of taking the Private Equity route are numerous, making it a difficult area for any business owner to navigate easily.
Advantages of Private equity funding
1. It generally involves you appealing to investors, such as financial institutions, corporate entities, venture capitalists, angel investors or even private individuals.
2. PE funding is for long term.
3. PE funding is no limit to how much capital you could raise.
4. Unlike using a debt finance agreement from a traditional lending institution, you’re not required to make monthly repayments to investors.
5. In addition, because they’re using their own capital, this also ensures that any investors have a vested interest in seeing your business grow.
Disadvantages of Private equity funding
1. PE fund will offer you their own capital, so they’ll naturally want to know more about what your plans involve.
2. To acquiring Private Equity from investors can be a frustrating and time-consuming process.
3. Although you are not required to repay investors, any capital that they do provide will come at the cost of equity shares in your business.
We are tracking most of major PE Funds. There are many benefits and features of private equity funds also there are many sources of PE funds for business, types of PE funding, PE funding Services Providers in India. As per your business requirement of capital, we suggest right PE fund with right term and conditions.