Private Equity Firms

Private equity firms raise committed capital from limited partners and buy stakes in private companies, usually with a plan to grow them and sell within four to seven years.

How private equity firms invest

Most firms specialise by deal size, sector and control. Buyout funds take majority stakes, growth equity funds take minority stakes in profitable companies, and many firms now run separate credit or secondaries funds. Check size, holding period and board requirements all follow from the fund strategy.

Approaching a private equity firm

• Match your EBITDA and revenue to the fund's stated range before you reach out.
• Look for a portfolio company in your sector; it shows interest and gives you a reference point.
• Contact the associate or vice president who covers your sector, not only the managing partner.