Investment perspective
Private capital
Private investments connect capital with businesses outside public markets. They require a detailed understanding of the company, its governance and the path to an eventual exit.
Understand the business behind the investment.
Private equity, growth capital and direct company participations can offer exposure to business development that is not available through listed securities. The investment case depends on the quality of the business, the people making decisions and the terms under which capital is committed.
The absence of a daily market price makes valuation, information rights and governance particularly important. Capital calls, shareholder protections, dilution and exit assumptions deserve careful scrutiny before any commitment is considered.
What deserves attention
- 01Business model, cash generation and competitive position
- 02Management incentives and shareholder alignment
- 03Valuation, financing structure and potential dilution
- 04Information rights, governance and legal documentation
- 05Capital commitments, holding period and realistic exit options
Risk perspective
Understand the downside.
Private capital is typically illiquid and may involve long, uncertain holding periods. Valuations can be subjective. Further funding may be required, and an exit may not be available when expected. The entire invested capital may be lost.
Questions worth asking
- Can this capital remain committed through an uncertain exit date?
- What information and influence will the investor have?
- How would the investment respond to a need for further funding?
General information, not a personal recommendation or an investment offer. Actual terms, availability and investor eligibility must be considered separately.
A personal conversation