[Private equity]

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

The term Private Equity is generally off-exchange. The equity financing of companies is through capital investments, which is described as equity interests. The private equity financing is not organized in capital market (stock exchange). Each year the private equity firms in UK give billions of pounds in order to reshape and develop firms who have high aim and growth. It makes manager into owners and provides them freedom in order to finance and focus their companies. Various businesses take advantage from private equity. Starting from high to low technology and developmental stages they establish large companies.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background1

Rationale1

Research questions1

CHAPTER 2: LITERATURE REVIEW2

Benefits of private equity2

Private equity investment3

Performance data on private equity3

CHAPTER 3: METHODOLOGY6

Research Design6

Literature Search6

CHAPTER 4: DISCUSSION7

CHAPTER 5: CONCLUSION9

REFERENCES10

CHAPTER 1: INTRODUCTION

Background

Private Capital and Private Equity (hereinafter CP) is one of the most ancient and widespread financing strategy. The CP is the equity contribution companies that are not publicly traded. Thus, the CP is a valuable source of flexible financing medium and long term companies with growth plans. It helps in expansion of existing business through generation of new business or improving the capital structure. Perhaps one of the best known of Private Equity financing in history is the issue of Christopher Columbus to the Indies. It ended in discovery of America. As Columbus Genoese adventure was funded mainly by the Spanish crown, in order to multiply investment and obtain a return.

Rationale

Corporate finance or acquisitions by so-called private equity companies reported in recent years throughout the world strong growth. Private equity is considered to be a long term financing opportunity. It is in return of an equity stake that has potentially high growth for unquoted companies.

Research questions

What is private equity?

What are the benefits of private equity?

What role private equity play in UK?

CHAPTER 2: LITERATURE REVIEW

Many small companies whose main aim is to deliver good standard of living are not interested in private equity. This is mainly due to the financial returns. They are unable to provide high financial return. The difference of entrepreneurial businesses from others is the potential for growth and aspiration. These businesses aim for high growth and significant size. As per the rule of thumb a business can only offer significant growth within five year. (Smart 2007, 503)

Benefits of private equity

The companies that are backed by private equity show faster growth than other companies who are not backed by private equity. This growth is only possible due ...