Private equity investments from the investor’s and the issuing companies’ point of view

Research Paper (undergraduate) , 2013 , 24 Pages , Grade: 1,3

Business economics - Investment and Finance

The paper on hand aims at analyzing the financial model private equity from participants’ point of view. The introduction has shown the importance for the overall economy. Questions of the paper are: what are the criteria for successful investments for both parties; what are the advantages respectively difficulties from the perspectives of investors and issuers of private equity?

In order to systematically approach the questions the author first provides the fundamentals of the concept. In a second step benefits and risks for the participants in private equity investments will be described. A simultaneous assessment of these will result in an overview reflecting potential profits and losses.

The analysis focusses on theoretical descriptions; practical applications will not be considered. Information and data gathering is based on secondary literature.

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List of abbreviations

1 Introduction
1.1 Objective of the paper
1.2 Methodology

2 Fundamentals of PE investments
2.1 Definition of the term private equity investments
2.2 Participants on the PE market
2.3 Process of PE investments and negotiation criteria
2.4 Application of PE investments in the company life cycle

3 Benefits and risks in PE investments
3.1 Breaking down the critical points between the investors: LP and GP
3.2 Breaking down the critical points between investor and target
3.3 Weighting the power between investor and issuer

4 Conclusion

List of literature

Integral Total Management (ITM)

• College: University of Applied Sciences Essen
• Grade: 1,3
• Author: Anne-Kristin Rademacher (Author)
• Year: 2013
• Pages: 24
• Catalog Number: V213651
• ISBN (eBook): 9783656422419
• ISBN (Book): 9783656422723
• Language: English
• Tags: Investment, private equity, limited partner, venture capital, PE