Private equity investment is handled by using different strategies. Among them, there is Leveraged buyout, Growth capital, Mezzanine capital and Venture capital. The first strategy called leveraged buyout involves the buying out of a company from its current owners. The bought out companies may be either of the following: 1) companies of good standing, with running operations and healthy cash flows, 2) companies with deficiencies or aren’t earning as much. Those companies with healthy cash flows are prospected to be new acquisitions and businesses of their own while those companies failing to reach their potential are being bought out in order to be given an extra hand.
On the other hand, venture capital strategy entails lending a hand to start up companies who have barely gotten off the ground. The goal of venture capital strategy, however, is almost similar to leveraged buyout strategys when it is used on buying out a company that is struggling. Both aim to build up companies in hopes of helping them out.
As investment strategies, a level of risk is unavoidable. This is what investors are getting into regardless of the strategy they choose to use. However, some people find addressing this risk fun and thus making a living out of it. This is what people like Jaime Bonetti Zeller do. Visit mercadosocial.com to learn more about Jaime.