| Many companies want to know How To Raise Capital | | | | amount of capital the firm has on hand. If a company |
| From the Biggest Private Equity Firms. This is not | | | | has $100 million in AUM it will likely do a highly |
| exactly how it works, however, most likely if you | | | | leveraged deal to buyout a multi-million dollar firm. |
| are asking this question you are a small to mid-size | | | | Whereas a smaller firm will be able to get significantly |
| company. There is a misconception that the largest | | | | less leverage from a bank or creditor and will have to |
| PE firms are the best providers of capital. I think that | | | | settle for a smaller investment. |
| this stems from the idea that PE firms with the most | | | | But this is not bad news, there are small and midsized |
| capital for investment will use this capital on many | | | | PE firms and venture capital firms that can provide |
| small investments. Most often the Carlyle and | | | | capital to businesses. So while you may want to |
| Blackstone Groups of the world will use this huge | | | | work with the larger buyout firms, they will almost |
| store of capital to invest in mega buyouts and | | | | certainly target multi-million dollar firms. If your firm is |
| multi-million dollar deals. | | | | not in that target range then you have a lot of other |
| This Is important to understand, the size of the PE | | | | capital providers that you may be able to work with. |
| firm does not necessarily mean that it has more | | | | If you are asking How To Raise Capital From the |
| money to invest in more small deals. In fact, it is | | | | Biggest Private Equity Firms, you should think |
| often the opposite because smaller firms typically | | | | realistically about whether you should lower your |
| invest in smaller companies because that it the | | | | sights to a smaller PE firm or venture capital partner. |