Private Investment Fund Non-public Investments Like Hedge Funds

Benefits of Non-public Investments Non-public investments, such as those offered by private investment funds, provide a range of benefits for investors. These investments offer opportunities to diversify portfolios and potentially achieve higher returns compared to traditional public market investments. Here are some key benefits of non-public investments: Diversification Investing in …

How Tag-Along Rights Work: A Detailed Explanation with an Example

What are Tag-Along Rights? Tag-along rights are designed to prevent majority shareholders from leaving minority shareholders behind in a sale transaction. Without tag-along rights, majority shareholders could sell their shares and leave minority shareholders with no option to sell their shares at the same price and terms. Tag-along rights are …

Equity Co-Investment: Definition, How It Works, Benefits

Equity Co-Investment Equity co-investment is a strategy in which investors have the opportunity to invest alongside a private equity or venture capital firm in a specific deal or transaction. This type of investment allows investors to directly participate in the potential returns and benefits of a particular investment, without having …

Distribution Waterfall: Maximizing Profits in Investment Partnerships

Maximizing Profits in Investment Partnerships The distribution waterfall refers to the way profits are distributed among the partners in an investment partnership. It outlines the order in which profits are allocated and the percentage each partner receives. One way to maximize profits in investment partnerships is to negotiate favorable terms …

Angel Investor Definition and How It Works

What is an Angel Investor? An angel investor is an individual who provides financial support and mentorship to early-stage startups in exchange for equity ownership. These investors are typically high-net-worth individuals who have a keen interest in investing in innovative and promising business ideas. Angel investors play a crucial role …