What is ‘Private Equity’?

Private equity is equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet.

The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event such as an IPO or sale to a public company. Private equity firms will then try to improve the financial results and prospects of the company in the hope of reselling the company to another firm or cashing out via an IPO

• Minimum Investment amount Rs 2.5 Crs

REITS

A REIT, or Real Estate Investment Trust, is a company that owns or finances income-producing real estate. Modelled after mutual funds, REITs provide investors of all types regular income streams, diversification and long-term capital appreciation.

REITs allow anyone to invest in portfolios of large-scale properties the same way they invest in other industries – through the purchase of stock. In the same way shareholders benefit by owning stocks in other corporations, the stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to go out and buy or finance property

With equity REITs, any investor can own a piece of a skyscraper. Real estate investment trusts, through experienced management teams, purchase and manage commercial real estate. When you purchase shares in a REIT, you become a partial owner of those properties. From this perspective, you’re also a partial owner of an operating business that manages properties for profit

• Minimum Investment amount Rs 2.5 Crs