Wednesday, January 29, 2014

Leading Global Investment Managers

If you're interested in investing, then you may want to connect with a private equity firm. While you can certainly invest on your own, it takes a lot of time and knowledge of the stock market to determine who exactly you should invest in, what the risks are, and what the potential benefits are. As a general rule you should spread investments around to include low-risk, medium-risk, and high-risk ventures, but when investing in companies via private equity investing, almost all of the ventures are going to be medium and even high risk ones. By enlisting the services of a private equity investment firm (check out wes edens video for an example of a private equity investment firm), you'll have their knowledge and expertise to guide you in making the best financial decisions.

The purpose of a private equity firm is simple: acquire companies, invest in them financially to improve them, and in some cases, then sell those companies for a bigger profit - or sell them simply to let someone else deal with the financial issues that come along with them. Private equity firms get their funds from individuals and groups that are interested in investing, but don't necessarily want to do all of the work on their own.

While everyday investors will most likely not have the capital required to take part in these types of investments, if you're a part of a group of investors, or you simply have a large funding source to work with, then you should certainly get in touch with private equity firms. While it's true that they do collect a fee for their services, keep in mind that their livelihood depends on seeing investors succeed - so they're going to work hard for your money.

When you partner with a private investment firm, you will typically be given two options for investing in a company:

Traditional investor: you'll provide a sum of money for a company to use as capital; in return you will have shares in the company, and quite possibly a seat on their board of directors (handy in providing financial guidance for the company's future plans)

Silent partner: you'll provide a sum of money for a company to use as capital; in return you will receive quarterly or annual payments as long as the company is active, though you will not have shares nor a say in the company's direction

There are advantages and disadvantages to both types of investing, and an investment firm can go over these with you in detail to help you make the best choice. If you plan on investing in multiple companies, you can try your hand at traditional investing as well as silent partnership. In some cases you can change your role as an investor, so if you find that you prefer a silent partnership over a traditional investment, you may be able to choose that route instead. And if you find that you're investing in a company who is continuing to do poorly, you can always sell your share and move on to better prospects.


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