Are You Really Ready for Private Equity?

Abstract

There are a number of reasons that successful businesses look for private equity investment. Private equity can provide growth capital and some liquidity for business owners while they continue to grow their businesses. Although more expensive, private equity also tends to be more flexible in its terms than traditional debt financing. Hence, it may be particularly attractive in today’s challenging economic environment, in which bank and similar debt financing is becoming harder to get and more restrictive in its terms.

TOPICS: Private equity, performance measurement, analysis of individual factors/risk premia, manager selection