What is private equity? Private equity provides medium to long-term, committed capital to help companies develop and succeed. It is very different from raising a loan from a lender, such as a bank. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of your success or failure.
Private equity is invested in exchange for a stake in your company and, as shareholders, the investors' returns are dependent on the growth and profitability of your business. We are looking for investment opportunities where the business has potential for growth in an expanding market. A well documented business plan and an experienced management team are essential. [Back to top] What impact does private equity have on the UK economy? Around 1500 UK companies make use of private equity every year, with such funding equating to several billion pounds. This finance is used to develop and reshape companies and take them onto the next stage of growth and development. Private equity provides companies with a strong financial base from which to make key strategic decisions. [Back to top] Who uses private equity and why? Entrepreneurs use private equity to fund expansion and increase the value of their businesses. Company founders use private equity to facilitate partial sales or to exit the business, to buy out other partners or simply to release some of their own personal money. Management teams use private equity to buy out current owners of companies or to buy into a business that is for sale. [Back to top] How is Infinity different? We are different because the experience of the partners enables us to add value to the businesses that we invest in. We do not interfere with the day-to-day running of the business but where we can give advice we will. The partners have been advising on how to develop businesses for a number of years and are now in a position to provide funding with which to implement their advice and consequently to take part in the upside. [Back to top] What sort of businesses does Infinity invest in? We invest in businesses that display significant potential for the future. We will invest across a variety of sectors, both in the UK and internationally, but generally we do not look at start-up companies. We do not have a sector bias, however, particular sectors of interest are: finance providers & financial services, telecoms, property, hospitality & leisure and professional services. [Back to top] What kind of ongoing relationship does Infinity offer? At least one member of the team will take an active role on the board of each portfolio company. We will be available when assistance is required and will expect to attend regular meetings in addition to being provided with regular performance reports. [Back to top] Is there a minimum/maximum investment that Infinity would be prepared to make? The minimum level of investment is £1,000,000. The maximum investment is £10,000,000 in a single transaction. However, each opportunity is considered on an individual basis and these levels are a guideline only. [Back to top] For how long do you aim to get involved with a business? We are looking to be involved in a business for a minimum of two years and we have no fixed exit requirements. Our aim is to develop a portfolio of strong, profit generating, well managed businesses. [Back to top] How should you submit a proposal? If you are interested in talking to us further please email a brief outline of your business, details of the level of funds you are looking to raise and a summary of the purpose of raising the funds to
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Alternatively, you can telephone the office and speak to one of the partners. All information will be treated as highly confidential. [Back to top] How long should the proposal be and what format should it be in? Your initial approach to us should be no more than one side of A4 paper and should contain the following information: - Type and size of business
- Details of the management teams
- Funding required
- Future plans for the business
If you have a question that is not answered above, please email
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and we will try to answer it for you. [Back to top]
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