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Questions and Answers
What does Private Equity involve?
What does Private Equity involve?
Investment managers employing investors' capital to invest in non-listed companies.
Which of the following are managed products in Private Equity? (Select all that apply)
Which of the following are managed products in Private Equity? (Select all that apply)
- SME Fund (correct)
- Technology & Innovation Fund (correct)
- Infrastructure Fund SI (correct)
- Real Estate Fund
Expansion capital involves a change of control of the business.
Expansion capital involves a change of control of the business.
False (B)
What is one advantage of private equity investment for target companies?
What is one advantage of private equity investment for target companies?
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Expansion capital is a type of private equity investment that focuses on relatively ______ companies.
Expansion capital is a type of private equity investment that focuses on relatively ______ companies.
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What is a key step in the Private Equity process?
What is a key step in the Private Equity process?
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Study Notes
HAT SGR Investment Strategy
- HAT SGR is an asset management company with €320 million in assets under management.
- Focuses on innovation, technology, and infrastructure investments.
- Manages four alternative investment funds, including private equity, venture capital, and infrastructure funds.
Private Equity
- General Partners (GPs) use Limited Partners (LPs) capital to invest in non-listed companies.
- Aim is to increase company value, generate returns for LPs, and potentially for GPs if they overperform.
Private Equity Process
- Starts with meeting an entrepreneur and evaluating their business.
- Involves due diligence, deal structuring, and valuation.
- Focuses on creating value through organic and external growth strategies.
- Includes competitive bidding, private transactions, and financing.
Expansion Capital
- A type of private equity investment for mature companies seeking funds for expansion, restructuring, market entry, or acquisitions without changing control.
- Targets companies with a clear business plan for growth.
- Investment horizon ranges from medium to long term.
Features of Expansion Capital
- Offers capital increase for growing companies.
- Provides financial and managerial support with a clear business plan.
- Offers a medium to long-term investment horizon.
Advantages of Expansion Capital for Target Companies:
- Provides financial resources for implementing business plans and growth strategies.
- Offers access to a network of financial contacts.
- Provides managerial expertise and guidance.
- Provides access to capital markets for future financing.
- Offers potential exit opportunities through IPO or sale to another company.
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