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What is Private Equity? What R the points to be consider whi

Sameer Medhekar (Student) (4140 Points)

28 January 2009

What is Private Equity? What R the points to be consider while negotiting Private Equity Deal?

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Bijoy N.Momaya (www.RupeeResearch.com (Eqty Advisory & S) (477 Points)
Replied 28 January 2009

Private Equity fund is an systematic pooling of investment in which the said securities are not traded on stock exchange board. This PEF mainly deals with investments in equity shares of a company. Debt investments is genarally not considered for investing. It is generally fixed for certain specified period of time. Its not a compulsory lock in period but generally say 3-5 years period. This PEF is managed by highly proffesionally qualified investment experts.

In simple terms, PEF are the equity shares which are not traded on stock exchange board. Insurance companies which provide ULIP's generally go for PEF.

Sameer has raised a very good question. I have tried to explain it to the best of my knowledge. Proffesionals n CA's please correct me if i m wrong. Thank U.