By Evan Vitale
(This is Part III in our series on different types of capital, including debt capital, equity capital, private equity, venture capital, angel investors and investors).
Private capital is similar to a bank loan as it is indeed money that is provided to a business. However, the capital “loan” doesn’t come from a bank; government entity or from the public by selling stocks.
Instead, private capital comes from private individuals – or a group of individuals – who make investments (or loans) that are not regulated by the government or by the rules of a public exchange.
A private capital investment typically happens as a one-on-one transaction between the business and the investor. Therefore, the business can seek private capital anytime it needs it: startup, growth, etc.
See also:
What is Debt Capital?
What is Equity Capital?
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Evan Vitale is a multifaceted finance and accounting professional who provides Audit, Accounting, Tax, Due Diligence and Advisory services to Venture Capital Funds, Hedge Funds, Private Equity Funds, Family Offices, Small Business Investment Companies (SBICs), Funds of Funds, Other Investment Groups and their management companies.
Today’s market has made it extremely difficult to predict what the next day will bring. For Funds and Other Investment Vehicles, the expectations remain to balance the different opportunities with a continued focus on value creation in existing portfolios. The key to any successful organization is building and maintaining the trust of your investors. Evan has the expertise to help you shine in your investor’s eyes and stand apart from the competition.
Funds have special needs when it comes to finding an accounting firm to help them with their accounting, auditing, tax and financial due diligence projects. Managing a fund is complicated enough without having to build the infrastructure to have accounting and tax services handled also.
Check out another Evan Vitale website and blog at http://evanvitale.org.