An equity investment is an investment by individuals or firms. The investment is usually in the form of stocks whereby profits are in the form of capital gains or dividends. The investor considers equity investment as a long-term strategy of maximizing his wealth. The investor recovers his money only when he sells his shares to others. Companies need capital for meeting their current fund requirements or growth plans.
Private Equity Investments Types
Private equity is any investment made in companies that will not trade it on a stock exchange. Companies utilize private equity investment funds for any of the following strategy. Investment firms in London guide investors to increase their earnings depending on the chosen strategy of the company.
(1) Leveraged buy-outs occur when the company wants to acquire another company. The equity investment required will be of high financial amounts;
(2) Venture Capital is when the equity investment is for a start-up firm or a small business. It is a higher return at a higher risk for the investor;
(3) Growth Capital is when the company is restructuring or expanding further. These companies are mature and reliable for making an equity investment;
(4) Profit from a change in valuation is a short-term investment compelling the investors to trade;
(5) Mezzanine Capital or debt investment where money is loaned for a return on interest or an ownership; the returns are as high as 20%-30% for the investor;
(6) An offshore equity investment is money invested in equities that is quoted publicly offshore. The investor is exempted from taxation and therefore worth considering.
Equity investments meet the fund requirements of an organization. Here, the investor realizes equity instead of the traditional interest on the capital amount. Businesses must be convinced that equity investment is the right finance option before they finally decide upon. This is because the process is cumbersome and the management may lose some control of their power to the investor. On the other hand, the investor gains high returns only if the company performs well; the proposition is risky.
Equity investment can be primary market investment and secondary market investment. In terms of the primary market, Tannet starts looking for an investment target from the business registration, namely, looking for potential listed target enterprise, and then participates in pre design services and listed incubation services, as well as equity investment. Another kind of equity investment is mergers and acquisitions and equity replacement within the industry chain.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling HK hotline at 852-27826888, China hotline at 86-755-82143181, Malaysia hotline at 603-21100289, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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