private equity

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Wolfgang Kovacek is providing services in the venture capital, private equity, finance arena and is a business consultant, business mentor, entrepreneur, financial facilitator, manager, former web communication executive, film producer and director.

Wolfgang finds great joy in assisting entrepreneurs who want to see their dreams fulfilled. He is active in the private equity and growth capital investment industry contributing to the economic health of local, national and global economies. Developing long-term value is key in the decision making process of a Venture Capital and Private Equity Fund  that invests in and builds enduring companies through the alignment of interests between investors and management. Wolfgang provides guidance and financial, operational and strategic resources and direction for approved companies.

What is Wolfgang’s passion?

  • Expanding vision in nations and companies globally to bring wholesome strategies for the benefit of the community and its people.
  • Engaging the public, policy makers, the media, and other stakeholders to encourage responsible investments, access to capital, economic growth and job creation.
  • Eradication of systemic poverty, contributing to a greater spiritual awareness and increasing levels of well being that positively affects Health, Education, Work, Environment, Social inclusion and Parenting.

Industries:

  1. Entertainment, Film, TV, Music, Fashion, Event Production,
  2. Green and Renewable Energy, Art, Real Estate, Infrastructure
  3. Medical Inventions, Technical Inventions, Media Inventions

Taglines: Business Mentor, Wealth Creation Craftsman, The CEO’s New Best Friend

Goldbars – Photocredit Ingot & BenMonteSS

Private Equity vs. Venture Capital

Technically, venture capital is just a subset of private equity.

They both invest in companies, they both recruit former bankers, and they both make money from investments rather than advisory fees.

But if you take a look beneath the surface, you’ll see that they’re significantly different.

Definitions

Technically, the term “private equity” refers to money invested in private companies, or companies that become private through the investment.

Most people in finance, though, use “private equity” to mean firms that buy companies through leveraged buyouts (LBOs) – so that’s how we’ll use it here.

There are a couple other categories of PE, so we’ll look at those at the end of this article.

What They Do

While both PE firms and VCs invest in companies and make money by exiting – selling their investments – they do it in different ways:

  • Company Types: PE firms buy companies across all industries, whereas VCs are focused on technology, bio-tech, and clean-tech.
  • % Acquired: PE firms almost always buy 100% of a company in an LBO, whereasVCs only acquire a minority stake – less than 50%.
  • Size: PE firms make large investments – at least $100 million up into the tens of billions for large companies. VC investments are much smaller – often below $10 million for early-stage companies.
  • Structure: VC firms use only equity whereas PE firms use a combination of equity and debt.
  • Stage: PE firms buy mature, public companies whereas VCs invest mostly in early-stage – sometimes pre-revenue – companies.

The MERGERS & INQUISITIONS article is by Brian DeChesare.