Question

Explain the differences between fund development through private equity in India, Brazil and China.

Answer 1

Private equity is the investment capital invested by any high net worth individual in a firm with the aim of acquiring equity ownership in the firm. These capitals are not quoted on a public exchange. The capital can be used for expanding the working capital of the company, to strengthen the balance sheet or to bring new technology in the company to increase output. Institutional investors and accredited investors are the major part of the private equity in any company because they have the ability to commit a large sum of money for a longer duration of time. Often, private equity is used to convert a public company into private one.