The Complete Direct Investing Handbook

Appendix A: Private Equity Strategies Summary

Appendix A.1 Private Equity Strategies Summary 1 of 3

Venture Capital	Growth Capital	Buyouts	Mezzanine Financing	Distressed Assets	Real Estate
Category description	Investments in innovative early-stage startups Investing in option value Ideal company characteristics include: 1. significant market size, 2. fast growth, 3. defensible position, 4. high gross margins, and 5. low capital intensity Concentrated in patent dependent technology sectors and consumer Internet firms	Expansion capital to fund growth of profitable businesses, taking them to the next level Generally execution-oriented middle market firms; may be capital intensive	Purchase of mature businesses, typically financed ...