If you’ve been thinking about working with a private equity fund, or if you already have, then this blog post is for you! We’ll give you the inside scoop on how to find and work with one of these powerful entities.
How A Private Equity Fund Is Structured
Private equity funds are an investment vehicle for acquiring and managing companies. The general partner is responsible for finding new investments, while the limited partners provide money to make those investments.
Private equity funds may be set up as a limited partnership, with one or more general partners who manage the fund (and receive fees) and one or more limited partners who provide capital but do not participate in management decisions.
The most common type of private equity fund structure is known as a “blind pool,” which means that investors don’t know exactly what they’re investing in until after they’ve bought into the fund; this helps ensure that there’s no bias toward any particular industry or company type when choosing where to put their money.
How To Approach A Potential Partner
Once you’ve identified an area of opportunity, the next step is to find a potential partner, says John Mattera. You may already have one in mind, or you may need to reach out and make some new connections. Either way, there are some things to look for in a potential partner:
- Does their company have experience in your industry? If not, how much time will they need before they’re ready to go? This is important because if it takes too long for them to ramp up their knowledge base on your industry and its trends (or lack thereof), then there will be delays in getting things done–and nothing gets done until everything gets done! So make sure that whoever joins forces with yours knows what they’re doing before signing on the dotted line!
How To Work With Your Partners Effectively
When working with a private equity fund, there are a few things you should keep in mind. First and foremost, make sure that your business is ready for this arrangement, according to John Mattera. You need to be able to show potential investors that you’re capable of handling the extra workload and stress that come with being involved in such an arrangement.
The next step is making sure your partners understand what they are getting themselves into when they invest in your company. Make sure they understand how difficult it can be at times–and make sure they aren’t just looking for easy money! Once everyone has agreed on these terms (and more), then everything should go smoothly from there on out!
What You Can Expect From This Arrangement
You should always be aware of the risks involved with working with a private equity fund. They can be very helpful to your company, but they also come with some downsides that you should be aware of before deciding whether or not to work with one at all. Here are some things you can expect from this arrangement:
- The benefits will likely outweigh the risks if you choose a reputable firm that has experience successfully investing in similar industries as yours, as well as experience managing companies like yours (if applicable).
- Private equity funds tend to have access to more capital than an individual investor would have on their own; therefore they may be able to offer better terms when negotiating deals with potential buyers/partnerships/licensing agreements etcetera.
