PRIVATE EQUITY

Sub-Topics

PRIVATE EQUITY

MAIN CATEGORIES OF PRIVATE EQUITY OR PE FIRMS.

LEVERAGE BUYOUTS

VENTURE CAPITAL

PRIVATE EQUITY

Why does a Private equity consulting firm needed? It's to increase management confidence, mitigate risk associated with PE firms, access to experts a quantifiable growth blueprint to maximize return on exit.

RACCWEALTH has recently introduced Private Equity in which clients could benefit from our services making the buying and selling of PE seamless. RACCWEALTH Consulting provides comprehensive full support packages by identifying companies of value, due diligence, and management planning.

Our experts draw on deep understanding of the industry and [performance improvement with aim in helping clients achieve the highest possible investment returns on deals. 

LEVERAGE BUYOUTS

Liabilities & Equity

 

Bank Debt (50%)

Expected Return

Key Characteristics

5% - 12%

  • Low financing cost

  • Low default risk

  • Leverage: 1.5x to 3.0x EBITDA

  • Restrictive Maintenance Covenants

  • Floating Rate: callable instruments

ASSETS

High Yield Debt (15%)

Mezzanine (15%)

Equity (20%)

13% - 18%

18% - 25%

20%-40%

  • 10 year fixed loan

  • Deferred cash interest

  • Has both debt & equity features

  • Potential earnings similar to equity, protection similar to debt

  • Unlimited upside potential with no downside

  • Private Market and Public Market

  • Riskiest security in capital structure

VENTURE CAPITAL

Invest in young companies with growth potential

Start ups

Scale ups

P.E Investing