In India, Private equity became an asset class in which various institutional investors allocated capital in the hopes of achieving risk adjusted returns and exceed those possible in the public equity markets.

A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies. Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions, characteristically make longer-hold investments in target industry sectors or specific investment areas where they have expertise and take on operational roles to manage risks and achieve growth through long term investments.

Private equity firms, with their investors, will acquire a controlling or substantial minority position in a company and then look to maximize the value of that investment. Private equity firms generally receive a return on their investments through one of the following avenues:

Initial public offering (IPO) — shares of the company are offered to the public,
merger or acquisition — the company is sold for either cash or shares in another company;
a Recapitalization — cash is distributed to the shareholders

Our expertise as well experience team guide institutional and individual investor to make maximum utilisation of their resources by investing it in private equity through their Invocative solution, comprehensive due diligence and strong relations in the industry