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At one point or another, nearly every SME has had some sort of cash injection to get them over a particular hump. This can be to launch a new product, expand into a new market, or acquire the manpower needed to help the business grow. However, when and the details of the investment can vary wildly. It is therefore important that when approaching fundraising, SMEs understand all the possible options so they can get their ducks in tow and secure the best type of investment for their business. In this article, financial consultant Kevin Smith outlines seven different types of fundraising available and how to know when you are ready for investment. https://lnkd.in/e_SSuXUc #SME #Finance

What is Private Equity? Private Equity (PE) refers to investments made in private companies, or in public companies with the intention of taking them private. PE firms raise capital from investors, such as pension funds, endowments, and family offices, to invest in businesses, often with the goal of eventually selling them for a profit. Key characteristics of Private Equity: 1. Private ownership: PE firms invest in private companies or take public companies private. 2. Long-term focus: PE firms typically hold investments for 3-7 years. 3. Active ownership: PE firms often take an active role in guiding the company's strategy and operations. 4. High-risk, high-reward: PE investments can be risky, but also offer potential for significant returns. Types of Private Equity: 1. Venture Capital (VC): Early-stage investments in startups and growth companies. 2. Growth Capital: Investments in mature companies to fund expansion or acquisitions. 3. Leveraged Buyouts (LBOs): Using debt to finance the acquisition of a company. 4. Distressed Investing: Investing in companies facing financial difficulties. 5. Mezzanine Capital: Providing subordinated debt or preferred equity to companies. Private Equity firms: 1. Raise capital from investors 2. Invest in private companies 3. Work with portfolio companies to improve operations and strategy 4. Exit investments through sale, IPO, or merger Benefits of Private Equity: 1. Access to capital for companies 2. Expertise and guidance from PE firms 3. Flexibility in investment structure and duration 4. Potential for high returns for investors However, Private Equity also involves risks, such as: 1. Illiquidity 2. High risk of default 3. Lack of transparency 4. Dependence on debt In summary, Private Equity involves investments in private companies, often with the goal of eventually selling them for a profit. PE firms raise capital from investors and work closely with portfolio companies to improve operations and strategy. While PE offers potential benefits, it also involves significant risks.

Navigating the World of Private Equity: How Transparency Benefits Investors #Markets #Economy #investing #money #bankingindustry #productivity #bestadvice #businessintelligence #Innovation #Management #Technology #Entrepreneurship #Startups #VentureCapital #Economics #strategy #business #artificialintelligence #socialentrepreneurs

Exploring the Advantages and Disadvantages: Direct vs. Fund of Funds in Private Equity #Markets #Economy #investing #money #bankingindustry #productivity #bestadvice #businessintelligence #Innovation #Management #Technology #Entrepreneurship #Startups #VentureCapital #Economics #strategy #business #artificialintelligence #socialentrepreneurs

Private Equity, opportunity or challenge? https://lnkd.in/eUuaurvr You are not taken seriously as an investor until you are also in Private Equity. Private Equity is nothing more or less than shares in a company that is not publicly listed. Unfortunately, Private Equity has acquired a bad connotation due to certain unethical practices. But it can be done differently, with a win-win-win intention. That way, Impact Entrepreneur and Impact Investor develop a lasting partnership that benefits all parties. #Investing #Lending #Equity

Starting an investment firm is no different than starting any other startup other than it takes a lot of money and there is no product to sell to cover opex. You either have to have a lot of money already ($1-5 mil.) as you need to pay salaries, startup costs, legal fees, your GP commit for fund 1, fundraising, broker retainers... it ain't cheap. So how do you pull this off when you only have a few hundred thousand to commit to your new firm? Debt, but you're not going to be able to get it from any bank unless you put up personal collateral. Private debt, angels and other investors who understand the space and know that a short term loan to bridge the gap between management fees is an option. GP stakes, which is the equivalent of selling equity in your startup. They invest for equity and they get their pro-rata percentage of the firms profits from fees and carried interest FOR EVER no matter if they do 1 fund or 50 funds. The downside to GP stakes is not many GP stakes investors (firms and institutions) invest in new firms, they typically want seasoned firms with a fund or two under management and they buy in to offer the GP's liquidity. This is where the gap in the market is and where we're focused at TFS Capital Management.

WEEKLY DEALS 1.      M&A Kenya’s NCBA Group has fully acquired Aig Kenya Insurance Co. Ltd, an insurance company, after buying the remaining 66.7% stake from AIG. The acquisition will allow NCBA to tap into the insurance market. The deal’s transaction details remain undisclosed. Saham Finances is set to acquire a 57% stake and voting rights in Morocco-based Société Générale Maroc after receiving approval from Morocco’s Competition Council. The deal is valued at MAD 8bn (USD 800m). Investment platform, Level Africa, has acquired Utilis Ventures, a Uganda-based investment advisory firm for an undisclosed amount. The deal will increase Level Africa’s ability to serve clients intending to invest in Africa. 2.      Capital Raising After getting approval from its major shareholders, Sterling Financial Holdings Company, a Nigeria-based national commercial bank, is planning to raise NGN 200bn (USD 132.9m) to enable its sustainable growth and investment. Ghanian manufacturer of steel-related products, B5 PLUS LIMITED GHANA, is set to receive USD 50m from IFC - International Finance Corporation for the ongoing refurbishment of the TFZ steel plant, installation of a wire rod facility at the TFZ plant, development of a roof solar plant at the Prampram facility and working capital. To create an integrated business environment with world-class infrastructure and advanced technology, Kenya-based services-oriented business park, Two Rivers International Finance & Innovation Centre SEZ has raised USD 47.5m of mezzanine funding from Africa’s leading mezzanine fund manager, Vantage Capital. With a USD 5m mezzanine loan from Finnfund, Communication and Renewable Energy Infrastructure (CREI) will be able to install, and operate 413 hybrid power solutions for telecom sites in South Sudan. 3.      VC/PE Raising Tunisia-based asset management firm, SPE Capital Partners has raised USD 140m for the first close of its SPE Private Equity Fund III (SPE PEF III) through support from the SIFEM - The Swiss Development Finance Institution, FMO - Dutch entrepreneurial development bank, EBRD, European Investment Bank (EIB), and the IFC - International Finance Corporation. The fund aims to invest in North African fast-growing startups. Impact investment fund manager, Global Social Impact Investments SGIIC (GSI), has raised EUR 15m (USD 16.1m) from the AGENCIA ESPAÑOLA DE COOPERACION INTERNACIONAL PARA EL DESARROLLO - AECID to support SMEs in Sub-Saharan Africa.

There are so many wonderful Impact Projects. There are so many people that could do better with their money while getting a better return. Let’s connect and go win-win-win. #ImpactLending #ImpactInvesting #ImpactBusiness

Title: "Funding, Investment & Finance: Mastering the Money Maze for SMEs" Running a small-to-medium-sized business \SME\ can feel like navigating a complex maze. Particularly when it comes to financial management, funding, and investment, the path ahead isn't always clear. First, let's talk cash flow. Without an efficient cash flow management system, even the most profitable SME can flounder. So, stay on top of your invoices, ensure clients pay on time, and keep a tight rein on expenses. It’s all about the numbers, and, trust me, they don’t lie. Next, funding. Traditional bank loans, angel investors, venture capitalists, crowdfunding – the options are plentiful. But remember, there’s no one-size-fits-all. Your business's unique needs dictate the best financing route. Be proactive in exploring all avenues and never underestimate the power of a great pitch. Now, let's get real about investment. Reinvesting profits back into your business is crucial for growth. But it’s not just about throwing money at new ideas. It's about strategic investment. Consider areas that directly impact your bottom line like product development, marketing, or customer service. Lastly, don’t do it alone. Financial management is complex. Hiring a skilled finance professional or outsourcing to a trusted firm can be a game-changer. They bring expertise, precision, and a fresh perspective on financial best practices. Remember, mastering the money maze is not a sprint, it's a marathon. Stay focused, stay informed, and stay committed. Your financial health is the heartbeat of your business. Nurture it, and watch your business thrive. #SMEFinance #BusinessFunding #StrategicInvestment

4 charts: Pockets of growth in European PE #startup  #fundraising  #angelinvestor  #investments  #VentureCapital  #vc #Entrepreneurship  #venturefunding  #investing #TechNews #Innovation #technology https://lnkd.in/e3jRfQ3A