Private Equity Groups

What do they do, anyways?

Private equity groups are important members of the financial community. The typical private equity group is in the business of raising money from institutional investors (sometimes alongside their own money), successfully finding, acquiring and helping established businesses to grow and then selling them after a handful of years to generate a profit. There are variations on pretty much every point I just made but it is directionally correct for the purposes of this summary. In general, the management of the private equity group serves as a "general partner" in an investment and outside investors serve as "limited partners". The PE group charges a "carried interest" and typically participates in the upside return of an investment or portfolio's investment performance beyond certain targets. While they vary widely in their defined "investment criteria", they also vary widely in "personality". I have worked with a number of PE groups over time and they are among the most intelligent, thoughtful and savvy business professionals I have ever met. All business owners should have a direct relationship with at least of handful of relevant / high quality PE groups well before launching any type of formal search process. Need a few good introductions? Drop me a note and let's discuss if I can be helpful.