The presentation describes the list of criteria of a Private Equity fund while analyzing an investment opportunity.

1. What makes a proposal
attractive to Private
Equity Funds

2. What is Private Equity (PE) Funding
Types of Private Equity Funding
Seed Capital Venture Capital Growth Capital Mature Funding
These funds invest and
support businesses at a
very early stage
Typical investment size
– USD 0.5 - 2 mn
These early stage funds
investing into startup firms
and small businesses with
perceived long-term
growth potential.
Typical investment size
– USD 5 – 50 mn
These funds investsin
growing companies and
funds for the next phase
of growth.
Typical investmentsize
– USD 20-100 mn
These funds invests in
mature companies for
sustainability of the
business and future
growth.
Typical investment size
– above USD 100 mn
2
 Private equity refers to a type of investment that is aimed at gaining significant, or even
complete stake of a company in the hopes of earning a high return
 Private equity firms can invest in both privately and publicly held companies
 Private equity firms investing in public companies is known as “PIPE” – Private Investment in
Public Equity
 The private equity industry has evolved substantially over the past decade or so

3. Why Associate with a Private Equity Fund?
Value Creation
Add Business
Credibility
Increased
Business Visibility
Sharing Risk &
Rewards
Long Term Capital
Bring in Industry
Best Operating
Practices
Providing
Business Related
Strategic Support
Assistance with
Subsequent
Financing
Extended
Business Network
3

4. What attracts a Private
Equity fund to invest in a
Company

5. 5
Industry
Size
Growth
Market Opportunities
Favorable trends & regulations
Entry Barriers

6. 6
Business
Products/Services
Management Team
Customer Base
Brand
Market Position

7. 7
Business
Financials
Growth
Cash Flow
Business Model
Unique Selling Points

8. 8
Business
Sustainability
Impact – Environment & Society
Technology Backed
Competitors

9. 9
Exit Options
Public Offerings (IPO)
Buyback by Promoters/Company
Sale to a Strategic Partner
Sale to another fund
Sell Off

10. 10
Valuation
Company’s Expectations
Reasonable & Realistic Valuation
Fund’s Expectations

11. Test your understanding….
11
Education Industry Packaged Food Industry

12. Any Questions?