Private equity is an investment class where investors buy equity shares in a privately-held business to sell it in the future. It involves a defined investment partnership that buys and manages shares of a company until such time that it’s more profitable to sell them.
Private equity investors often provide significant capital for years, which is why access to such investment classes is often limited to large established institutions and extremely wealthy individuals.
Unlike venture capital, which involves buying equity of startups, private equity firms invest in mature companies, or those with stability and successful track record. For example, Falcon Global Capital manages its clients’ portfolio to maximise the value of the share and determine when it’s the right time to sell and pull out the investment after some years.
Over the decades, the practice of private equity investing grew popular and ever more lucrative in the time when stock markets are riding high, the interests are low, the returns are high, and more people are becoming knowledgeable about the ins and outs of stocks and investments.
For institutions and those high-net worth individuals, they hire investment companies like Falcon Global Capital to launch private equity funds and manage them as general partners in exchange for fees. When the equity is sold, we take a percentage off of the profits.
When a private equity firm acquires a company, it has the intent and a plan to increase the investment’s worth over time. The plan can include making drastic changes to cut costs and streamline operations, or any steps the incumbent management have not been able to make. If private equity owners have a limited time to add value to their investment, there is greater motivation and incentive for them to make major changes to ensure optimal value on their returns.
Conversely, the private equity firm can increase the investment’s value by introducing its strength or expertise in a particular area like adopting a new technology, formulating a digital or e-commerce strategy, or entering additional markets.
Since 2016, Falcon Global Capital has been the top-rated private equity wealth manager for its clients in the United Kingdom and the MENA region. We are always on the lookout to invest in high value opportunities that will yield superior risk-adjusted returns. We conceptualise and execute a flexible investment strategy that employs innovative ideas as well as the global view of investment trends and market behaviour.
Apart from private equity, we also offer a comprehensive variety of wealth management solutions like asset management, asset trading, financial advisory and planning, fund strategies, corporate services, and many others. Book an initial consultation with us and we’ll help you make the right executive decision!