Making the most of other people's money. (private equity financing)(Finance): An article from: Chief Executive (U.S.)

This digital document is an article from Chief Executive (U.S.), published by Chief Executive Publishing on June 1, 1996. The length of the article is 2447 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: An increasing number of companies are discovering the benefits of private equity financing. Citicorp, Enron Capital & Trade Resources and Quantum Restaurant Group are the most recent examples of firms using private equity to fund acquisitions, equipment upgrades, capacity expansions, investments, divestments and debt reductions. This development is being fuelled by the accumulation of equity capital. The Federal Reserve estimates that the pool of currently available private equity is worth about $100 billion. The advantages of private equity financing include freedom from fixed obligatory interest and principal payments, access to additional management expertise, assistance in leveraged buildups, and opportunity for the owner to cash out. This financing approach also has disadvantages that need to be considered, including the possibility of the private equity investor wanting to stay on and pursuing a new direction for the organization.

Citation Details
Title: Making the most of other people's money. (private equity financing)(Finance)
Author: John K. Castle
Publication:Chief Executive (U.S.) (Magazine/Journal)
Date: June 1, 1996
Publisher: Chief Executive Publishing
Issue: n114 Page: p44(4)

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