PRIVATE EQUITY

STRUCTURE
BY GROUP 8
ROLL NO. 1, 27, 32, 43, 51, 72
INTRODUCTION TO PRIVATE EQUITY

• 1. Private equity is a source of investment capital from high net worth individuals to invest and acquire
equity ownership in companies
• 2.It is the capital that is invested in the direct ownership of businesses not traded on public stock
exchanges
• 3.Private equity (PE) is a medium to long-term financial investment provided in return for equity in a
company that is typically not listed on an exchange
• 4.private equity investments involve a high degree of risk and may result in partial or total loss of capital
STRUCTURE OF VENTURE CAPITAL /
PRIVATE EQUITY FUNDS
1.OFFSHORE FUND STRUCTURE
An offshore fund structure typically involves establishing a fund in a jurisdiction with favourable regulatory
and tax conditions.

These structures attract investors seeking tax benefits and regulatory flexibility.
2.CO-INVESTMENT
A co-investment structure is a combination of offshore and and domestic investment .
Two separate pools of capital for offshore investors as wll as domestic investors are been raised.

3.UNIFIED INVESTMENT FUND STRUCTURE

This structure is generally used whereby domestic investors are expected to participate in the fund.
STRUCTURE OF VENTURE CAPITAL/
PRIVATE EQUITY FIRMS
1. General Partner
(Managing entity)
Legal power to act on behalf of fund

2.Management Company
Investment adviser
Owns and Manages the fund

3. Limited Partner
Investors in the fund
4. ROUTES OF VENTURE CAPITAL/ PRIVATE
EQUITY INVESTMENT IN INDIA

1. An SPV is primarily, a business association of person or entities eligible to participate in the association

2. Direct Investments: Investors directly invest in startups or companies by purchasing equity or convertible
debt instruments.
• 3.Private Equity Funds: These funds focus on investing in more mature companies with established
business models and a track record of revenue and profitability. Private equity investments in India
often target companies in sectors like healthcare, technology, consumer goods, and financial services.

• 4.Private Equity Funds: These funds focus on investing in more mature companies with established
business models and a track record of revenue and profitability. Private equity investments in India
often target companies in sectors like healthcare, technology, consumer goods, and financial services.
REGULATORY ASPECTS OF VENTURE
CAPITAL/ PRIVATE EQUITY INVESTMENTS
WILL BE THE CASE STUDY ON THE
PRIVATE EQUITY STRUCTURE
Case study: xyz private equity firm
Background: Xyz private equity form speciazes in mid-sized technology companies . they identify the
opportunities for growth and operational improvement and eventual exit strategy

Structure
1. Fundraising
2. Investment strategy
3. Operational improvement
4. Exit strategy
5. Distribution of returns
Challenges
1. Market volatility
2. Exit timing
3. Regulatory changes

Success metrics
1. ROI
2. IRR