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What is the difference between loan syndication and a consortium?

In a very general sense, a consortium is any group of individuals or entities that decides to pool resources toward a given objective. A consortium is usually governed by a legal contract that delegates responsibilities among its members. In the financial world, a consortium refers to several lending institutions that group together to jointly finance a single borrower. These...

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March 30, 2015 No comments Uncategorized

HOW A PRIVATE EQUITY FIRM WORKS

A private equity firm is called a general partner (GP) and its investors that commit capital are called limited partners (LPs). Limited partners generally consist of pension funds, institutional accounts and wealthy individuals. The general partner invests the fund’s committed capital in public and private companies, manages the portfolio of investments and seeks to exit the investments in the...

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Private Equity and Venture Capital

Private equity is sometimes confused with venture capital because they both refer to firms that invest in companies and exit through selling their investments in equity financing, such as initial public offerings (IPOs). However, there are major differences in the way firms involved in the two types of funding do things. They buy different types and sizes of companies,...

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January 15, 2015 No comments Uncategorized