With offices in Leeds, York and Sheffield, our team of corporate solicitors has a wealth of experience in providing help and advice and our key sector based legal knowledge will help you plot a path through the private equity lifecycle. To speak to an expert today, contact Lupton Fawcett by calling 0333 323 5292, or complete our enquiry form and we will be in touch as soon as possible.
What is Private Equity?
PE is a term used to describe investment into a private company made by specialist firms. Investment by private investors, coupled with good management, can often lead to an established company seeing high levels of growth.
What is Venture Capital?
VC is the finance that investors provide to small companies or startups to help them grow. This finance can come from individual investors, investment banks or partnerships who commonly invest for less than a 50% share of companies.
Private Equity vs. Venture Capital Investment
PE and VC firms often raise their funds from institutional investors such as pension funds, insurance companies, endowments and high-net-worth individuals.
While there is no hard and fast distinction between the separate definitions of PE and VC, in general, venture capital funds tend to invest in companies at an early stage of their development, when there is often little, if any, track record of profitability.
Private equity funds, in contrast, usually invest in more established companies, with the aim of reducing inefficiencies and driving growth through improved margins and increased revenues. Quite often, a private equity or venture capital firm might invite an individual private investor (sometimes called an ‘angel’), who they know and have faith in, to invest some of their own money alongside the PE or VC firm, so as to supplement the strengths of the existing management team.
Regardless of the type of investor, the ultimate aim is to create value. Investors typically look for strong management teams with a market opportunity and a good business plan.
The corporate department at Lupton Fawcett has experience in advising on all aspects of PE and VC work, including fundraising, crowdfunding, carried interest and fund structuring.
Our expertise includes offering guidance on start-up investments and turnarounds, as well as dealing with development capital transactions, management buy-outs and buy-ins, institutional investments and debt for equity restructurings.
Talk to us
Whether you have been approached by a PE house or a VC team and are going to go ahead with an investment, Lupton Fawcett provides invaluable support at each stage of the process. To get in touch, simply call 0333 323 5292 or complete the contact form on this page. With offices in Leeds, Sheffield and York, we can offer our services across Yorkshire and the UK.