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.

graphique

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

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