Private Equity Growth Funds See an Opportunity for Capital Raising vs. Buyout Firms

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Reuters’ Simon Meads in London reports that private equity firms are using investors’ disappointments with low returns from buyouts to their advantage. They plan on getting more funding to make arrangements with entrepreneurs, and lessen their activity with debt-laden controlling stakes. 

The 3i Group has decided to initiate a growth fund devoted to investors want for less risky investment even with lower returns. Funds such as these receive low returns during peak times, but during economic downturns these funds outperform due to their lower rate of volatility.

It’s questionable as to whether this strategy will be successful as the private equity market remains in flux and many investors have suffered from illiquidity in the marketplace from both buyout and growth strategies.

If you would like more information of this topic click on this link: http://bit.ly/a4xiZR.
 

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