the role of private equity in a changing global business world
Thursday, September 10, 2020 | 1:00 PM PT / 3:00 PM CT / 4:00 PM ET
Facilitated by Mike Lawrie, Founder and CEO of The Lawrie Group (biography)
Private equity firms are groups of investment professionals that apply pools of capital from affluent individuals, pension funds, insurance firms, endowment funds and other sources toward investing in businesses that show the potential for growth. The firms use their private equity holdings to carry out a variety of functions for their investors, for the businesses in which they invest and for themselves.
While traditional private equity investors invest three quarters of their capital in large companies, a new breed of investors are focusing on owner-led small businesses. Private equity firms are sitting on more un-invested capital than ever before. The amount of capital held by private equity funds increased to $2.5 trillion in 2019, up from roughly $400 billion in 2000. A recent survey from ECA Partners showed that private equity investors are reserving 54 percent of their capital for new investments. This is a slight drop from pre-crisis levels — when investors where spending 62 percent of their capital on acquisitions and investments —but not as strong of a drop as some might think.
The new breed of private equity investors is providing small business owners with more exit options than ever before. That’s a good thing for entrepreneurs, as they can focus on creating long-term value rather than short-term profits, which is what happens when they lack exit options. Learn about how you can leverage the private equity market by joining this important conversation!
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