Venture capital firms focus on investing in companies that are only just past the startup phase. This sets them apart from private equity firms, who target businesses that are already in a stage of maturity. Private equity managers like Greg Lindae contribute both debt and equity to the transaction, creating a hybrid scenario. Buy-out firms and financial sponsors, both names for private equity firms, look for companies that aren’t publicly listed. They aim to stay invested in those companies for between three and seven years, after which they expect to implement their exit strategy and make a profitable return. Usually,…
What Is the Perfect Acquisition for a Private Equity Firm?
