Private Equity Investment

Private equity investment is money invested in companies that do not trade on the public stock markets. Private equity investments run the scope of corporate finance strategies from financing new companies to infusing capital in established companies. Channels that include private equity include: leveraged buyouts, venture capital, real estate & special situations. Private equity fund managers negotiate acquisition prices and terms to often obtain significant control of billion dollar ventures. They take a vigorous role in monitoring and directing the companies in which they invest. They frequently change management to ensure their strategic plans are implemented forcefully and efficiently under 100 day plans. This provides them the opportunity to enhance returns by directly influencing the company and eventually creating value. While private equity investments typically span five to eight years, quick flips of two years or less are not uncommon. Here's a quick idea to some of the other investment options.

Mutual Funds; a mutual fund is ideally a professionally managed pool of cash from a group of investors. A fund manager invests your funds in securities, including stocks & bonds and decides the right time to buy and sell adhering to the fund's stated investment objective (eg, capital preservation, growth, income, etc.)

Savings Accounts; along with mattresses are a fine place to keep your crisis funds.

Money Market Accounts; generally make somewhat higher interest than a savings account but still permit easy access to your funds.

Bonds; when you buy bonds you basically loaning money to a corporation for a definite period of time, known as term. The bond certificate promises that the issuing body will pay you back the principal on a particular date with periodic fixed interest payments at the coupon rate.

Stocks; similarly when you purchase stocks, you technically own a piece of a company's assets. If the company performs well, you may receive intermittent dividends and be in position to sell your shares of stock at a profit, generating a tax liability in many countries.

David E Simpson is a Director Investment at Starling Group

http://www.starlinggroup.com