Carried interest is the profit earned on private equity investments by a deal-maker in a private equity house. Often known as carry, it allows private equity professionals to receive up to 20% of the profit from a company they sell. The carry can be a significant portion of a private equity professional’s total compensation.
Private equity [...]
While both venture capital and private equity firms provide cash in exchange for equity positions in companies, the main distinction is the juncture in which the investment is made. With the exception of turnaround investments, private equity firms tend to invest in more established businesses with a history of positive, and preferably reliable, cash flow [...]
Private equity investors employ various transaction strategies to acquire and grow profitable portfolio companies. The categories that www.PrivateEquityInfo.com tracks - acquisition capital, buyouts, consolidations, corporate divestitures, ESOPs, growth capital, recapitalization, shareholder liquidity and turnarounds - are described below:
Acquisition Capital - capital provided to operating companies intended for growth via acquisitions. This capital is normally provided [...]