Matias Campiani has a long and proven record in industry, specializing in fields such as venture capital and private equity industry. He is a top professional with strong entrepreneurship and is also an expert in Negotiation and Mergers and Acquisitions. He has recently got into the new business start-up market and its strategic planning. As an all-rounder he would definitely be an asset to anyone at any time.
Private equity is a medium to long term investment which means that you should be prepared to have your money invested for quite a long time before wanting to get it back usually between seven and ten years. If you may need quick access to your money, then this is not the investment for you. The risk is high as the benefits can be big, but they can also be very bad.
Private Equity investments will invest in management buy outs and management buy ins, in companies that are well established.
Venture capital invests in new start up businesses and this is how the two differ.
The theory is that these businesses are well established and ran by expert managers therefore your money will grow. The added advantage of private equity is that the managers work alongside the business and thus there are very viable links between the two, ensuring that investors will always be aware of what is going on, as much as they can be, and also that fund managers will be able to have their say. The private equity manager will be one of the executive team. As financial experts they can advise the company on all matters of a financial nature from choosing suppliers to salaries and the two interests can work in tandem to hopefully create a win-win situation.
The equity companies will often go to pension providers, insurance companies and family offices to trade their wares. Each investing what they can and becoming pooled funds in their private equity investment package. After the ten years the monies would be returned to the pension fund or the family office along with the profits, well at least that is the idea. This means that the investments will need to be sold at this time. The Limited Partners will receive the first layer of profits. Private equity does have a long history of providing good returns if you have an investment that you want to make and you would not need the money and finances for a decade or so.
A set of guidelines was introduced to ensure that the dealings were all above board and fair, with such a close relationship between investor and the company there were sometimes cause for concern. There are now firm guidelines, recommendations and strict reporting practices to avoid any problems.
Extra disclosure of information and communication is required from private equity firms and the companies they are invested in in order to meet this new criterion. Data has to be provided by the firms when asked and significant change also has to be reported as and when it happens.
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