Like HowStuffWorks on Facebook!

10 Aggressive Investments


3
Private Equity Arrangements
Private equity investors usually provide funding for a company while it brings a new product to market or perfects a new technology.
Private equity investors usually provide funding for a company while it brings a new product to market or perfects a new technology.
Jupiterimages/Thinkstock

For investors with a big chunk of money to invest (think $250,000 or more), private equity investments provide an opportunity to invest directly in a start-up company or a rapidly growing business.

Private equity investors are usually in it for the long haul and provide funding while a company pulls itself out through a rough spot, brings a new product to market or perfects a new technology. If the business fails, the investment fails with it, but investors often have the opportunity to negotiate favorable terms at the time of the investment, putting them in a good position to make some serious cash if the business succeeds.


More to Explore