By Viktoriia Dorofeieva
Private equity is a type of capital investment constituting an external source of financing for companies. An investor that regularly manages the assets of third parties. He usually has an interest in a long-term increase in the value of the company. It’s for realizing a profit at the moment of future sales of shares.
Additionally, the funds transferred to the companies may take the character of both own and hybrid financing. For example, a combination of own and debt financing. Apart from the financial contribution, the company may receive from investor management support of various nature. For instance, legality, tax, and organizational consulting.