Wednesday, April 09, 2008

Private Equity or Venture Capital

I like what he said in this one. I am sure this is not the most accurate definition and there is no empirical evidence. But common sense tells me that this makes much more sense.

Columbia University
There is also conventional wisdom that says if a company is not yet successful but the promoter is very confident, it is a venture capital investment, but if the reverse is true — if a company is successful but the promoter is not that confident and wants to either restructure using LBO or wants to exit — it is for sure a private equity investment.