Funding Matters; Expert View: Private Equity

Article sponsored by Haworths Chartered Accountants.

We often introduce clients to private equity (PE) organisations to fuel this growth. PE is a confusion of terms. Put very simply it is the investment in unquoted (private) companies. In the UK the term is generally used to cover the PE industry as a whole including investment to fund buyouts and venture capital.

Often, the investment is used to buy out the existing owners and then allow the management team to own a portion of the business and steer it using the PE funder’s equity investment.

Often, PE organisations have sector specialisms and can add huge value to existing management teams.