Private Equity Fund
Generally speaking, private equity is an asset class consisting of equity securities and debt in operating business that are not publicly traded. A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor. Simply put, Private Equity is an equity capital that is not quoted on private exchange.
Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies or business that result in a delisting of public equity. Capital for private equity is raised from individual accredited investors and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet.
The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a non-performing business. It uses financial leverage to achieve maximum return for the investors.
In Crossvine, we use the private equity financing method to deploy our capital in our portfolio-based investment in longer term deals. We employ the principle of private equity of leveraging and seeking for opportunities in real estate, traditional businesses and technology ventures where an injection of capital combined with other business terms and management resources that can create additional values in the businesses for higher valuation. The available of a pool of capital enables Crossvine to be more competitive in acquiring deals at lower cost and more flexibility to use leverage to achieve higher return.
Private Equity is typically only accessible to very small portion of the high net worth and highly connected individuals. Crossvine's goal is to establish a practices and strategies in deal making and structuring to enable more qualified investors to participate.