Private equity funds are investments formed through a partnership between a private lender and an independent company. Private equity funds typically have a high rate of return, come with a fixed investment time period, and feature specific exit strategies. These funds are usually direct investments in equity and pertain to venture capital, growth capital, leveraged buyouts, or turnaround situations.

A private equity fund may be used to finance the early stages of a company via the venture capital philosophy. Private lenders assist the company in starting out with their funds, receiving involvement in the company in return. If an independent company wants to expand, private equity funds can be used as growth capital to assist in the expansion of the business. Businesses moving through a management buyout can use private equity funds to assist in the transitional process, allowing for sufficient cash flow during the buyout. During distressed situations or turnaround situations, a company can benefit from a private equity fund to recapitalize on debts.

Private equity funds last between four and seven years. At the end of the funding period, private lenders must determine an exit strategy. This strategy involves leaving a business to trade or sell to another buyer. Investors can also choose to share a repurchase of the company at the end of the funding period. Leaving the business entirely is called a total exit, while a partial exit refers to a shared repurchase.

If you own a company and are in need of extra financing, consider a private equity fund. At AHL Hard Money Network, we can assist in providing you with an outstanding private equity fund to get your business on track. Learn more about our company and how we can help your business by calling or texting us today! Reach us by phone at 813-368-9919. You can also contact us via email at AHLhomeequitynetwork@gmail.com.