What is private equity?
Private equity provides investment to grow your business or fund a change in ownership – in return for a share in the company. Unlike raising debt, you’ll also be backed by experienced business growth partners, who can help you to open growth opportunities without losing control of your business.
The combination of investment and strategic support means partnering with a private equity investor can help you achieve your ambitious growth plans, whether that’s expanding into new domestic or international markets, driving organic growth, targeting complementary acquisitions, or investing in new products and services.
Why private equity?
The reasons for choosing to partner with a private equity investor are based on individual circumstances. Common themes include:
1. Pursue a new growth avenue.
The management team may wish to explore a new avenue to growth but lack the capital or specific expertise to deliver on it.
A private equity partner can offer the investment and experience to kick-on with this growth strategy, such as acquiring a competitor or expanding into a new international market. Over the last 10 years, compared to average medium-sized businesses LDC-backed businesses achieved 3.1x more growth.
2. Kickstarting a succession plan and supporting a change in ownership.
Private equity is not only a way of driving growth. For some business leaders, it can also provide an opportunity to open up succession plans.
For example, this could involve enabling your existing management team to increase their shareholding, which in turn allows other shareholders to divest, either fully or partially.
3. Helping business owners to de-risk whilst retaining control.
For other business leaders, it can be an opportunity to de-risk and sell a minority shareholding of the business to realise some value, whilst still retaining control. This is often an option for those business leaders who have experienced a shift in their own personal circumstances, or where their plans have changed.
A private equity partner will support your ambition. You know your company better than anyone, and your investment partner should act as an extension of your team – on hand to work by your side to provide expertise, support and capital along the way.
New to private equity?
Whether you’re seeking capital to grow your business, planning for succession or considering a change in ownership, our comprehensive Introduction to Private Equity guide explains your options and shows how the right investment partner can help unlock your next stage of growth.
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What is private equity?
Chris Cammann, Hybrid
We were keen to remain in the driving seat of our business but wanted support from an experienced investor.”
Ben Ridgway, iamproperty
Private equity is growth capital from private investors. And it is there to help you grow the business.”
Grant Mansfield, Plimsoll Productions
With private equity, I could raise the investment I wanted while still retaining a majority stake.”