Key Features of Private Equity Offered by Anand Rathi
Anand Rathi Private Client Group is your trusted specialist partner for Private Equity Investments. Private equity companies are specialists for high-net-worth individuals (HNIs) and Ultra high-net-worth individuals (UHNIs). We manage their portfolio risks and provide access and assistance for premium deals. Some key features of our private equity offering include:
Diverse Investment Strategies
Our investment modalities include direct investments and fund-based investments across technology, health care, infrastructure and consumer product sectors.
Experienced Management Team
Our team of veteran market experts recognizes potential markets and creates strong value-creation strategies to develop impressive returns.
Exclusive Opportunities
Through our industry network and market analysis, we offer quality deals that may not be easily accessible elsewhere.
Rigorous Due Diligence
Risk assessment is extremely important to us and we go through research and analysis to determine the viability of the investment to avoid risking our HNI clients’ money.
How Does Private Equity Investment Work?
PE firms attract funds through institutional and wealthy investors to use in private companies. These investments are typically made in various companies, from emerging start-ups to small caps, midcaps, and large caps, and in post-development concerns that need restructuring or expansion. Here's a breakdown of the process:
Fundraising
The PE firms obtain capital by aggregating a pool of money from investors, who are willing to explore more opportunities than investing in common stocks.
Investment
HNIs and UHNIs can invest in different business entities where they can acquire a significant stake in those PE companies to financially support their expansion or even alter their methods of operation with the aim of improving performance. This can allow for very fruitful investments.
Value Creation
PE investment allows you the opportunity to invest in companies with enhanced organizational performance, management, and business models of an involved organization. This helps to unlock the value of your investment in these Private Equity Companies.
Exit
Investors can the reap benefits of their PE investment, after some years, when the PE firms exit investments through a process of disposal such as a sale to another company or through floating in the stock exchange or re-buying out by another PE firm.
Why Choose Anand Rathi for Private Equity Investment
Our Private Equity offerings at Anand Rathi PCG are unique because of our focused approach to delivering sustainable value. We differentiate ourselves through:
Expertise
& Experience
Customized
Solutions
Risk Mitigation
Strategies
Network &
Deal Flow
Benefits of Investing In Private Equity
Private equity offers several potential advantages to investors, including:
High Return Potential
PE investments have the potential to generate higher returns compared with ordinary assets such as equities and bonds, if they can successfully manage their risks.
Diversification
PE provides investors with an opportunity to diversify since the ability of returns generated from PE investments is often not directly linked with the performance of the public markets.
Access to Growth Opportunities
The idea of investing in early or mid-growth companies means that investors get an opportunity to get involved in highly growing sectors and industries.
Active Management
Buy-out companies are engaged in the management of portfolio companies to ensure they unlock value and serve as catalysts for better operational, financial, and organizational outcomes.
How We Can Help With Private Equity Investment?
At Anand Rathi Private Client Group (PCG), we offer a set of focused services to HNIs and UHNIs who are looking for private equity investment. We offer:
Personalized Consultation
With an understanding of your investment objectives, risk tolerance, and available funds, our advisors assist in choosing the right PE opportunities.
Portfolio Management
We use PE only in combination with other investment tools for wealth management to achieve diversification and the highest possible growth rate.
Ongoing Monitoring & Reporting
We consistently report updates and research on the returns of your private equity companies' portfolios.
Exit Strategy Planning
We participate in the identification of the best exit strategies to provide good returns with a close eye on the risks involved.
FAQs
What are the types of private equity?
Private equity can be classified into several types based on the nature of the investment and the stage of the company:
- Venture Capital (VC): Focusing on young and high-growth businesses with high growth capability.
- Growth Equity: Offering money to large businesses for a business expansion or when they want to reorganize their operations.
- Buyouts: Purchasing a stake in a firm in order to enhance its operations and or management team up.
- Mezzanine Financing: A combination of loan financing and share financing, arranged for the purpose of financing the growth or acquisition of the firm but without relinquishment of control.
Who can avail of Anand Rathi's private equity services?
Can a retail investor invest in private equity?
How much money do I need to invest in private equity?
What is the Rule of 72 in private equity?
The Rule of 72 is a practical technique for evaluating investment time to double such investment when compounded at a specific rate annually. The rule is as follows:
For instance, if, for example, the expected return on a private equity investment is at 0.12 or 12% per year, then the investment will take about 6 years to double (because 72/12 is equal to 6).
How is private equity different from venture capital?
What are the risks associated with private equity?
Private equity investments come with a higher level of risk compared to public equities or bonds, including:
- Liquidity Risk: PE investments cannot be sold frequently and mostly have a long investment time span.
- Market Risk: Under certain circumstances, pressures such as economic instability, cyclical fluctuations, and volatile market movements or declines affect the operations and returns of the portfolio companies.
- Management Risk: The ability of PE investments to deliver good returns is now being attributed to the skill of the management in implementing and delivering business strategies.