What is Private Equity? An Introduction
Private equity (PE) is a form of alternative investment that involves investing in companies that are not listed on public stock exchanges. In certain cases, private equity firms may also acquire publicly traded companies with the intent of taking them private—distinguishing them from traditional investors who focus solely on listed securities. Private equity funds are typically organized as limited partnerships, where the PE firm acts as the General Partner (GP) responsible for managing the fund and making investment decisions, while investors participate as Limited Partners (LPs), providing the capital but not engaging in day-to-day management. Each private equity fund usually focuses on a specific sector, region, or investment strategy (e.g., growth capital, buyouts, distressed assets). The capital raised is deployed into selected companies, with the aim of enhancing value over time. Eventually, the PE firm seeks to exit the investment—through a sale, merger, or IPO—ideally delivering substantial returns to its investors.
Fund Type | Target Companies | Risk Level | Primary Goal |
---|---|---|---|
Leveraged Buyout (LBO) Funds | Mature, profitable firms | Medium | Restructure and exit at higher value |
Venture Capital (VC) Funds | Early-stage startups | High | High-growth, high-return potential |
Growth Equity Funds | Profitable companies seeking to scale | Medium | Accelerated growth and market entry |
Distressed Asset Funds | Financially troubled or undervalued firms | High | Turnaround and value creation |
Mezzanine Funds | Stable firms needing late-stage capital | Medium | Hybrid income + equity upside |
Sector-Specific / Thematic Funds | Industry or theme-based investments | Varies | Focused expertise and returns |
💬 Frequently Asked Questions – Private Equity Services
- 1. What is the first step in raising private equity with Jade Corporate Advisors?
- We start by defining your capital requirements and investment objectives. This includes assessing your funding needs, choosing the right capital structure (equity, debt, or hybrid), and aligning valuation expectations with long-term strategy.
- 2. How does Jade identify the right private equity firms?
- We research and map PE firms based on your sector, geography, business stage, and deal size. Our vast investor network ensures outreach to the most relevant and strategic partners.
- 3. What documents are prepared for investors?
- We develop a full investor toolkit including:
- A professional pitch deck (15–20 slides)
- Detailed Information Memorandum (IM)
- 3–5 year Financial Model
- Business Plan & Executive Summary
- 4. How is the investment story positioned?
- We highlight market opportunity, scalability, competitive advantage, financial potential, and exit possibilities—framing your business as a compelling investment opportunity.
- 5. Does Jade assist in investor outreach?
- Yes. We introduce you to selected private equity firms through our network and also collaborate with intermediaries. We manage meetings, follow-ups, and communication.
- 6. What support is provided during due diligence?
- We set up a secure data room, prepare responses to investor questions, and coordinate with legal and financial advisors to ensure a smooth, transparent due diligence process.
- 7. Does Jade help with deal negotiation?(Depends on service agreement)
- Absolutely. We help you negotiate key terms such as valuation, equity dilution, board rights, and exit milestones—ensuring a win-win structure for long-term success.
- 8. What post-investment support does Jade offer?(Depends on service agreement)
- Even after closing the deal, we support strategic planning, corporate governance, investor reporting, exit strategy, and next-round funding.
Optional Services
To learn more about their services in project finance Assistance, visit: Jade Corporate Advisors – Rupee Junction