Product Portfolio|Private Equity
    Private equity used to be the domain of big institutional investors. In 1999, MPC Capital was one of the first issuing houses which offered private investors the opportunity to invest in companies through its MPC Global Equity fund concept as well as its Step by Step savings schemes.

    Private equity is called "private" because it is not publicly traded on the stock exchange and "equity" to distinguish it from classic debt financing in the form of bank loans.
     

    What are the most important criteria?

    		  
      Experienced fund management both at the level of the equity investment company and at the level of the fund of funds
      Good track record of previous funds
      Broad industry and regional diversification of the investment
      Low costs at the level of the fund of funds
    Private equity companies raise funds from institutional (insurance companies, pension funds, foundations, etc.) and private investors and invest them in companies. This provides companies with the necessary funds for new business or expansion plans (venture capital) or restructuring and growth (buyout, private equity in the narrower sense). Investors can make a profit when the capital investment companies sell their investments - by floating the companies on the stock market or selling them to other financial investors.

    Private equity can be provided at different development stages of a company. If a company is, for example, still in the start-up phase, the financing is called venture capital, whereas the buyout segment deals with the financing of already established companies.

    Timing is very important when selecting a financing phase. Whether an investment is successful therefore depends, on the one hand, on the place and time of the investment and, on the other hand, on the selection of the right target fund.