Frequently asked questions
- What is private equity?
- Private equity invests capital in companies that have growth potential and then works with these companies to expand the business through organic growth and/or mergers and acquisitions.
- What is the difference between Private Equity and Venture Capital?
- Private equity funds invest in more mature companies through buyouts and growth capital. Venture capital funds invest in start-ups, early stage, and companies that are perceived to be scalable and have high revenue growth potential. Bluewaters provides investment funds for both private equity and growth capital, but we do not do venture capital start-ups and pre-revenue investments.
- What are GPs and LPs and how are they different?
- General Partners (“GPs”) are generally full time employees of the company and manage the day to day operations of the firm. GPs will often invest their own money in the funds they are raising. Limited Partners (“LPs”) are those who invest in the fund of the PE. Private equity raises money through the LPs which can be pension funds, institutional accounts, family offices, and wealthy individuals.
- How do Private Equity firms exit a company?
- Private equity firms can exit through a variety of different ways. A few of the more common exit strategies include selling to another private equity group, corporate or strategic acquisitions, which is when the company invested in is bought by another company or competitor, a management buyout, or an IPO where companies offer shares of stock to the public.
- What should I consider when choosing a buyer/investor for my company?
- Price is always important, but there are also other key considerations in picking an investment partner. Will they add value post-close? Are they patient or do they have a definitive time horizon they need to exit/sell the business? Are they flexible? Do they truly understand your business and what your goals are? How will they treat my management team and loyal employees?
Contact Us
We believe targeted funds and collaborative partnerships can net great results for all parties in the private equity process. We pursue investments with founder and family owned businesses located in the Southeast with up to $25 million in annual revenues.