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Private Equity | Venture Capital

Private investments (Private Equity, PE) lead to the growth of companies, within predetermined limits and deadlines

The strategy is tailored according to the profile of the entrepreneur and the business, whether it is an innovative start-up or an SME looking to take the next step in development.

Private equity fund managers are experienced in creating value, knowing how to turn a company into a success. Independent academic research has shown that private investment increases productivity, competitiveness and innovation. It helps to develop new products and identify new markets, both in the country and abroad. These objectives can even have as means the purchase of new companies in order to expand the one in which it has been invested.

As entrepreneurs know, foreign investment is a partnership, for the operation of which the choice of a partner with the vision and ambitions of the company is vital. For this reason, private investment is the right tool for ambitious entrepreneurs who own businesses with great growth potential.

On the other hand, private equity fund investors invest their available capital for a period ranging from 3 to 10 years. This capital is invested in a portfolio of companies, on which the fund manager aims to bring about the necessary transformations through active management within a period of 3-5 years.

Investments of the type of risk capital (venture capital, vc) usually aim at new, innovative businesses to support in the expansion process

Examples of companies that have been supported by venture capital are: Skype, SoundCloud, Rovio, but also the creators of Angry Birds.

Legal to Business has advised several private investment funds on all aspects of their investments in Romania, including the preparation of due diligence reports, the drafting of documentation related to the acquisition of control over beneficiary companies, etc.

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