Whereas swing or day traders make decisions by the minute, Private Equity players play a very different game according to Gareth Henry: Global Head of Investor Relations, and proven expert in private credit transactions and hedge fund placements. First hand experience in private equity, venture capital, investing, and finance has given Gareth Henry in-depth knowledge into the world of private credit. Check out ideamensch.com to read more about Gareth Henry
Private Equity deals are thought of in terms of years or up until issuance of shares in the event of an initial public offering of a portfolio company for example. These type of investors take on certain kinds of risks that are deemed “alternative”, and are placed directly outside of the pressures of the public market.
Interestingly, private equity firms are responsible for buyouts of public equity; in other words, acquisition of public companies altogether. On the private side, such equity investors are often found helping start-ups navigate funding rounds. Funds generated in an alphabetized series is utilized in a number of ways like balance sheet boosting, working capital expansion, and acquisition transactions. Private equity financing is usually arranged creatively, giving the borrower room to fully explore untapped growth strategies.
Although Gareth Henry expresses favor for private equity and private enterprise over the ever burgeoning pressures of running a public company, there several aspects to be aware of that lead to gains or losses. Besides the lockup period (frame of time when shares cannot be redeemed or liquidated), market volatility can profoundly effect compound average returns. Because of the lack of oversight by regulatory entities like the SEC, liquidating can sometimes be a lengthy process.
As Gareth Henry further explains, these high-risk, high-return ventures are aimed towards accredited investors or those with a high net worth and an appetite for higher returns. Henry is no stranger to managing billion dollar deals in private equity, and currently operates as a global expert on investor relations.
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