Investment Strategies
PRIEQUITY invest in Debt by providing performing middle market companies with cost-sustainable capital solutions.
PRIEQUITY stands in the lesser-known corner of Growth Equity, focusing on providing middle market companies with cost-sustainable capital solutions to help them drive, thrive, and maintain autonomy and profitability in their journey. By building long-term, value-added relationships with our invested companies, we are able to provide an asset class that is stable with fixed returns for investors.
A Private Equity firm manages a pool of funds from accredited investors consisting of high-net-worth individuals, institutional funds, hedge funds, etc. Collectively these investors are called Limited Partnerships (LPs). LPs have no influence on the investment decisions of the fund but are contractually bound to deliver their portion of committed capital when the fund manager makes a capital call. Each Private Equity firm follows one of the following three investment strategies or a combination thereof:
Venture Capital
The Venture Capital strategy invests in early-stage start-up companies in exchange for equity shares. It is the riskiest form of investment in Private Equity as their investments have yet proven their ability to turn a profit. However, if their investment turns out to be profitable, they have the potential for high returns.
Growth Equity
The Growth Equity strategy invests in established-stage companies that have already proven their track record. This type of investment strategy is low yielding but provides consistent, stable returns, and least risky of the three investment models.
Buyouts strategy
The Buyouts strategy invests in later-stage or mature companies through acquisition, leverage buyouts, or management buyouts. This is the most common type of Private Equity investment strategy, yielding the highest returns of the three strategies.
