Capital Transmission

What is private equity?

Private equity (or investment capital) consists of non-debt funding (equity) or quasi-equity provided by investors (private individuals, investment funds, etc.) to non-listed (private) companies to finance their development or their transmission.

Private equity or capital investment encompasses the following activities:

Growth capital (or capital development): these are investments to

finance the growth

of mature companies.

Buy-outs (or company purchases): these are investments to finance the acquisition of companies

with strong profits potential, with leverage effect.

Venture capital (or risk capital): this comprises
investments in young companies

with strong growth potential.

Turnaround capital: this refers to investments in distressed companies, so that they can

be restructured.

Capital Transmission has specialised in capital development and buy-outs, and is not authorised to invest venture capital.

Leveraged or buy-out operations (LBO/MBO/OBO etc.)

Purchase of a company using bank debt (leverage effect)

With a new management team (internal or external) or with the existing management

In association with financial investors

With a view to ensuring the continued existence of the company or developing it together

By aligning the interests of the various parties

What type of company is suitable for a buy-out?

Experienced and motivated management team

Steady revenue stream and demonstrated profitability

Leading position or specialist know-how

In a mature market

Development potential to be exploited

Absence of succession in a family business or spin-off of an industrial conglomerate

Useful links

The Swiss Private Equity and Corporate Finance Association http://www.seca.ch

The European Private Equity and Venture Capital Association http://evca.eu