Benefits of Private Equity

Benefits of Private Equity



Private equity enables companies to better exploit their potential. With the capital that private equity firms and their funds provide, they can drive their development and remain independent.
Raising money for your business through equity finance can have many benefits, including:
  • The funding is committed to your business and your intended projects. Investors only realise their investment if the business is doing well, eg through stock market flotation or a sale to new investors.
  • You will not have to keep up with costs of servicing bank loans or debt finance, allowing you to use the capital for business activities.
  • Outside investors expect the business to deliver value, helping you explore and execute growth ideas.
  • Some business angels and venture capitalists can bring valuable skills, contacts and experience to your business. They can also assist with strategy and key decision making.
  • Like you, investors have a vested interest in the business’ success, ie its growth, profitability and increase in value.
  • Investors are often prepared to provide follow-up funding as the business grows.
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