Private equity funds typically invest in companies that can demonstrate positive cash flow and have a good outlook for expansion within Portugal or international markets. Common sectors are healthcare, industrial, IT, renewable energy, hospitality, education etc. Some are focused only on one field, while others invest across several sectors. Their typical strategy is to take a controlling interest in an operating business and increase the value by being involved in a company’s management. Typically, private equity funds have a medium to high-risk profile with a similar expected yield. PE funds lifecycles vary from 6-10 years.
- Typically lower risk compared to venture capital (higher downside protection)
- Several industries to choose from: renewable energy, healthcare, hospitality, logistics, manufacturing, agriculture, etc. Many funds also invest across several sectors.
- In many cases there are some dividend payments
Note
- Often the track record of the advisors are more relevant to consider than that of the fund manager, which often means less available objective data
- Expected returns could be lower compared to venture capital funds
Source/Credit: Nomad Gate
