Private equity can be a valuable source of capital and expertise for small business owners. The best known type of small-business focused private equity firms are called small business investment companies, or SBICs. Although other structures exist, private equity funds are generally organized as either a limited partnership or LLC. Private equity firms generally receive a return on their investment through one of three ways: an IPO, a sale or merger, or a recapitalization. Only certain types of startup companies fit the right profile to raise their small business funding with private equity funds. The key to a good match with a private equity investor is preparation. Ask your lender, attorney or accountant if they know any private equity funds in your area or that invest in your industry.
To learn more, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.