Regent Evolution provides advisory services for Private Equity funding to SMEs.

As an independently owner managed firm we know the highs and lows of growing a business.

Our buzz is identifying good investments for our clients and investment partners and sharing in their success.

Private Equity

Many of our partners have run businesses funded by Private Equity. We understand how enterprises can benefit, not just from an injection of funds into the business, but also the industry expertise that private equity can provide, to help create greater value for your business.

Because many of us have been there, we understand the volatile environment that is the business owner’s world.

The two most important aspects to attracting Private Equity investment are:

  • Presenting a credible management team. Private Equity will need to be completely convinced that the group of people running the business are capable of delivering on their objectives
  • Having a product or service which is exciting and captivating and continues to, or will, outperform your competition.

Along with financial results, forecasts and other important aspects to your business, these need to be presented in a robust document. We can assist you in producing this Business Plan which can then be used raise the funds you need from Private Equity.

What is private equity?

The two aspects of the Private Equity concept that need to be considered are:

A private equity fund is a collective investment scheme that allows limited partners to commit to contributing to entrepreneurial private companies, or individuals, requiring funding.

This funding is provided either to:

  • acquire shares in the company from existing shareholders, often to fund a Management Buy-out, or
  • provide new money to a business to help fund growth, for example, by way of an acquisition.

We advise businesses on private equity investment, that typically fall into the following categories:

  • Entrepreneurial private companies or individuals needing funds
  • Non-core business units within larger groups
  • Businesses that will benefit from operational change
  • Businesses undergoing management buyouts or equity release
  • Businesses undergoing the retirement of management, or internal transitions

A Private Equity fund has a responsibility to its investors to make a good return on their investment. They do this by selling the shares in the companies they have invested in for substantially more than they have bought them, typically a 3-4 times return on capital over a 3-5 year period.

Over the years the Private Equity market has matured and become more sophisticated and there are now many funds who are prepared to hold investments for longer than 5 years, 7 years or even more.

Private Equity growth strategies can include:

  • making operational and financial changes to the business
  • strengthening the management team
  • adopting new technology or entering new markets
  • growing by acquisition, typically called “Buy and build”.

Matching your funding requirements and growth strategy with those of a Private Equity fund is no easy task and choosing the right advisor to help you in this process is key.

Have a look at a selection of transaction advisory work we have carried out for clients in a variety of sectors.

See transactions