Private Equity

Equity investment, most often minority investments, in more mature companies, that are looking for capital for expansion / restructuring / modernization or up gradation of operations or for entering new markets with a vision of entering in to IPO planning in near future. 

Raising equity fund as part of a transaction, by which a company, business unit or business assets is acquired from the current shareholders, typically with the use of financial leverage. The companies involved are typically more mature and generate operating cash flows.

Venture Capital

This refers to a broad subcategory of private equity that refers to equity investments made, typically in early stage or growing companies, for the launch, early development, or expansion of a business. Venture capital is often sub-divided in trenches, by the company growth stages, such as early stage, growth stage, consolidating stage etc.

Distressed / Special situations Funds

Mezzanine Capital

This refers to a flexible financing instrument sharing some of the characteristics of both debt as well as equity i.e. subordinated to debt or preferred to equity securities - that often represent the most junior portion of a company’s capital structure but a senior to the company’s common equity. Mezzanine financings, which are usually private placements, are often used by smaller companies and can be completed through a variety of different structures based on the specific objectives of the transaction. The basic forms used in most mezzanine financings are subordinated notes and preferred stock. From a legal perspective, mezzanine capital is usually a subordinated medium-term committed loan. Typically, mezzanine capital may be used to fill a financing gap between less expensive forms of financing (e.g., senior loans, second lien loan, high yield financings) and equity.