Private equity capital is typically used to fund new technologies, expand working capital within an owned company, make acquisitions, strengthen the balance sheet for private companies, or to conduct buyouts resulting in the delisting public companies. This type of capital is normally funded by institutional investors and is used to buy, improve upon, and then sell businesses in an effort to realize a return on investment. Private equity is utilized to create additional value for the business and then profit from the cash flows that it produces and from the capital gains upon exit.
Private equity investors are strongly focused on the cash flow of the business. The cash flow from operations is used to leverage up (increase debt) aggressively to increase the return on the company's invested capital. The cash flow generated by the business is analyzed and monitored closely to ensure that the debt service from the additional debt can be met.
While venture capital is typically invested in earlier stage growth companies, private equity investments are generally made to more mature businesses, often contributing both equity and debt (or some hybrid) to the transaction.
Private Equity Financing and CNF Exchange
Finding the right private equity financing solution for your small to medium-sized business can be a challenging undertaking. CNF Exchange can help take some of the stress out of obtaining private equity investment opportunities with its convenient online interface for borrowers. We have an exclusive network of lenders that includes a number of top private equity firms. This exceptional degree of access and choice can help your company achieve the private equity financing necessary to achieve its operational goals.
Private equity funds
In most cases, private equity loans are designed to allow the company to expand into new areas of the marketplace, to acquire new property or subsidiary companies or to develop new technologies to better position the company in comparison to its competitors. You can see that these applications can be very useful in the modern marketplace and may provide your business with valuable assets you can use to increase your sales, improve your corporate reputation and expand your operations. At CNF Exchange, we are dedicated to helping your business acquire the funding it needs to take on the competition and win.
Private equity investments
Cash flow is one of the most important elements investors consider when deciding whether to fund a private equity financing request. Because CNF Exchange works with a number of lending institutions in its exclusive network, your request will be seen by some of the most active private equity firms in the business. The helpful professionals at CNF Exchange can help you create a request for this advanced capital funding option and can put you in touch with the right lender for your particular.