Private equity investment involves putting your money into companies that are not traded on the public stock markets. This form of investment includes the finance of new companies and infusion of capital into an established company. Managers of private equity funds negotiate the price of acquisition and terms to gain control over the company that is being invested in. these managers will also vigorously monitor as well as direct the companies in which they are planning on investing money in.
When an individual or company makes a private equity investment they will also generally make changes to the composition of the management team of the company in which they have invested money.
They make these changes to implement strategic plans in a more planned and efficient manner. In doing so, the managers are also able to enhance the returns by exercising direct influence on the company.
In most cases, private equity investment is done for a period spanning between five to eight years though it is also common to flip the companies that are invested in, in two years or even less.
If you are looking for a company that excels at private equity investment then look no further than a company called Monument Capital Group Holdings LLC.
You can learn more about Monument Group Holdings at this link: http://finance.yahoo.com/news/monument-capital-group-holdings-llc-133400358.html. The downsides to private equity investment include the following: because private equity funds cannot be invested on the stock markets, if you want to sell your stock of private equity you are going to find it hard to find a buyer. Also, there are a few transfer limits that apply to private equity. Finally, for most private individual investors it is hard to afford the high amount of investment required to indulge in private equity investment. Even so, private equity investment is perfect option for venture capitals and for organizations that want to invest in the long term in a project that brings them good returns.
