This Private Equity Firm Has Over $1 Billion of Deployable Capital to Work with Businesses

Private equity is a class of investment that acquires and invests in companies, not on the public stock exchange list. The acquisition is primarily in private companies or buyouts of public companies. The private equity funds are sourced from retail and institutional investors. The fund is then used to solidify a balance sheet, finance new technology, increase working capital, and make acquisitions. Before investing with private equity, it is important to note that long holding periods are essential requirements to ensure change for distressed businesses and enable liquidity events such as a sale to a public firm or an initial public offering (IPO). There are also pros and cons of investing with private equity. However, in most cases, the pros outweigh the cons. Private equity is advantageous to startups and companies since it provides access to finances from sources like venture capital, which is more friendly to investors than traditional financial sources like high-interest bank loans. If a company is de-listed from the stock exchange, private equity financing avails growth strategies with no pressure in sustaining earnings from the investors. There are also numerous types of private equity funding that a business can invest in. the primary types of private quit include real estate, leveraged buyouts, venture capital, and distressed funding. However, like any other investment, private equity has its challenges. Unlike the stock exchange, it is challenging to liquidate holdings in private equity. A business has to find a buyer to buy their company or investment. Share prices are also determined through negotiations between sellers and buyers, not market forces.

Companies seeking growth in their capital for investment can opt for mezzanine financing. It is an equity financing and a hybrid of debt that allows the lender to convert debt to an equity interest in case a company defaults on its loan. Compared to corporate debt, mezzanine financing can provide more yearly returns between 12% and 20%. The advantage of mezzanine financing is that it can be replaced by lower interest financing sourcing in case of a significant drop in the market interest rates. Mezzanine loans are often unsecured debts and have no amortization of loan principal. Although they are subordinate to senior debt, they have high priority over both common and preferred stock. Therefore, companies should prioritize mezzanine financing to fund their growth projects and acquisitions.

Businesses willing to invest with private equity can reach out to our company, Priequity LLC. Priequity is a private equity company led by a professional MBA graduate, Giovanni Corpus. Our offices are located on Wall Street, New York. Our primary mission is to provide an opportunity for businesses to access cheaper capital that can significantly help grow their business. Our company has more than $1 billion in capital deployable to work with other companies. Therefore, interested firms are always welcome to invest and grow their business with us through mezzanine debts. Our collaboration with companies is not subject to their size. Instead, we are interested in the capital needs of the company, both small or large companies, provided they have a proven track record.