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Showing posts from May, 2022

Hult Private Capital - Is private equity an option for startups?

Private equity is associated with growth capital and not startup capital. It is a type of investment typically reserved for companies that have grown in size and are looking for an exit strategy or growth that isn’t possible through traditional financing options. Startups that are just in the initial phase with an idea are too early for private equity. Private equity firms like  Hult Capital  typically look for later stage companies that are in need of big money or businesses that have some assets to leverage.  PE is an interesting business funding option if you are a business with existing assets or revenue. It is also valuable for businesses with a strong operational profile. So, if you are a small business or a startup, you have little use of PE. How private equity works? Money is pooled in from LPs (Limited Partners) by private equity firms. LPs tend to be insurance companies, pension funds, endowments and high net worth individuals. They usually invest in a private equity fund for

HULT Private Capital - Benefits of Private Equity for Businesses

Private equity has a significant role to play in the growth of a company or a startup. Compared to conventional financial options such as, a bank loan or listing on public markets, private equity allows access to liquidity. If you are a business owner, utilising private equity is an important step you can take towards building your business. Here are a few ways to get started: 1. There is no harm in focusing more on strategies for growing and scaling your business but don’t delay bringing on board a private equity investor.  Don’t view it as a potential exit path for a time when you are ready to leave or just as a way of monetizing your business. Change this limiting mindset and start viewing private equity as a tool for securing large amounts of capital and expertise. When you start working with a PE firm like  Hult Private Capital  you will see what an asset private equity can be in case of big payouts and rapid growth. 2. According to the industry experts, partnering with private eq

HULT Private Capital - Private Equity – Hiring the Right PE Partner

Did you know, private equity investments didn’t gain prominence until the 1980s. Instead of the public market, many struggling companies raised funds from private sources. So, if you are planning to choose a private equity partner for your business, you need to be extra careful. A lot of due diligence will be needed to separate the best from the rest. Once you have a reputed partner on board, new doors will open for your company, helping it grow like never before. The first and most important thing is to understand what you need from an investment. Even before you determine what a private equity partner can offer your business, it is important to know the amount and type of funding your business will require. Start by understanding your current growth stage and how much funding will be needed to get to some important business markers. Narrow down few reputed firms and look into what they can offer you in terms of advice. It is important to remember that you are not just looking for mon

HULT Private Capital - Private Equity Setting a Remarkable Standard

There is a significant rise in the demand for private equity funds. The inflow from existing as well as new institutional investors is also increasing due to high returns and low volatility that private equity funds offer. Due to the pandemic, every business sector suffered losses. Even private equity investments were low in the first two quarters of 2020. This decline was largely caused by the closure of existing businesses during the lockdown period. The decline was also driven by travel restrictions that governments across the world had posed. Even though private equity funding reduced by 24% for 2020, the picture changed very soon and the PE sector started showing great resilience. The last two quarters of 2020 witnessed an upwards trend in the demand for PE funding. Even during the coronavirus crisis, the PE sector made a strong comeback, fulfilling the need of private financing for private businesses. Considering the current market scenario, the need for private equi

HULT Private Capital - Choosing the Right Private Equity Partner

Want your business to achieve top-tier performance? Make sure you have the right private equity firm to invest with. In an industry where return dispersion is huge, choosing the right PE partner is crucial. Only the right firm can help you achieve your financial and strategic goals. You first need to determine what part of business cycle your company is in. Some PE firms specialise in the early stages and growth of a business whereas some want to invest only in mature companies. So first identify how you want your company to grow and then start looking for a PE firm best suited for your needs. Here are top 5 key factors that you must consider: The first step is to narrow down private equity firms that have expertise in your industry. It is always best to choose one that has invested in companies similar to yours. Review the past and current investments done by the PE firm to find similarities. Look for a reliable PE firm like  Hult Private Capital  that