| Private Equity Venture Capital is an investment | | | | This private equity capital venture that involves |
| stocks from private firms that are not listed in stock | | | | several business entrepreneurs joining together as a |
| exchanged market. Usually the exchanged market is | | | | group "angel group" with the aim to invest as a |
| composed of members who inter-sale securities in a | | | | collective shareholder of an entrepreneur's stock, |
| definite stock market set at a particular time, or | | | | with visions to specialize in some industry's expertise, |
| fixed buying timetable of closure. Private equity is | | | | likewise marketing in specific markets of target. |
| funding on a very broad sense. Types are leverage | | | | A wide range of innovative industries that has been |
| buyout, growth capital, angel capital, venture capital, | | | | patronized by the angel group capitalist, from |
| and the mezzanine capital. | | | | software, communications, manufacturing, medical |
| Some Types of Private Equity Venture that are | | | | equipments, and various innovative devises used in |
| Popularly Favored | | | | hospitals and in the medical profession. These Angel |
| 1. The Leverage Buyout | | | | groups aim at contributing to the economy in |
| This kind of venture capital is set on a ratio of 90 to | | | | particular, and usually choose to involve with |
| 10 percent capital funding distribution coming from | | | | entrepreneurs just within their regional jurisdiction, so |
| loans, or second party funds with a 10 percent equity | | | | their visions will be established where it is projected |
| of the base company, using the assets of the | | | | to be catered along. |
| enterprise to pose as collateral for those borrowed | | | | 3. Mezzanine capital |
| funds, and payments thereby of said loans will be | | | | It is a capital (debt incurred in equity capital |
| paid by any cash flow, proceeds, or acquired gains of | | | | ventures), which operates in a very broad financial |
| the subject business in equity. | | | | process from the point the indebtedness has been |
| In some instances, a significant amount of debt will | | | | drawn from a financier up to the time payments are |
| be incurred to zero equity at all (disregarding the | | | | settled, thus making a risky venture but with high |
| remaining 10% if it's not available at all). Usually, this | | | | yielding profits in investments classified as |
| happens when an enterprising group takes over the | | | | "subordinate" (a preferred stock), debt representing |
| acquisition of a public or private company or business | | | | a claim on the Company's assets that are directly |
| that's in the brink of insolvency due to | | | | next level-higher than the company's shareholders. |
| mismanagement, or corruption. In other cases it is a | | | | Mezzanine debt often includes equity warrants, a |
| combined capital from the buying group of managers, | | | | separate clause attached to the obligation |
| and from outside funding thru acquired debts, most | | | | (notwithstanding the usual charge on interests), a |
| often in form of high yield "trash" bonds. | | | | debt conversion feature, more likely similar to |
| 2. The Angel Capital | | | | convertible bonds. |