Most private deals whether they are trade sales or capital raisings are completed through closed networks, meaning opportunities are missed
Sydney, NSW (PRWEB) October 1, 2008
As the public markets continue to falter, IPO's have all but ceased, and small cap ASX listed companies struggle to maintain their share price and liquidity. Investor money is seeking alternative investment options that represent more stability and strong growth for the future.
Private Equity and Venture Capital in Australia:
One of those sectors is private equity. In Australia, this is a large but somewhat un-noticed market that offers good potential for investors. According to http://www.avcal.com.au there are approximately 300 private equity and venture capital firms in Australia managing over $25 billion of investor funds.
According to the 12th Annual World Wealth Report by Merrill Lynch/Capgemini, there are 172,000 High-Net Worth individuals in Australia, some of whom may seek to back private ventures. The amount of money available for private ventures could be as high as $50 billion.
Private Equity Benefits:
Investing into private companies offers investors more stability as the value of their investments is not affected by volatile and sometimes irrational share price fluctuations. Private companies are under less scrutiny and there are far less regulatory costs and requirements than their listed counterparts - allowing management to focus on driving growth, making acquisitions and delivering profits.
The downside of private equity investing is the lack of communication between companies seeking capital, and the money - namely private equity/venture capital funds, high net worth, wholesale and angel investors. "Most private deals whether they are trade sales or capital raisings are completed through closed networks, meaning opportunities are missed", says Steve Torso
This month, a new magazine and website called http://www.wholesaleinvestor.com.au has been launched in Australia by founder and former publisher of Wealth Creator Magazine, Reuben Buchanan and business partner Steve Torso.
"Wholesale Investor aims to closes the gap between investors and companies who seek capital", says Buchanan.
"Wholesale Investor works by simply listing companies, who are seeking capital or to be acquired in the magazine and online. We publish the key information investors seeks. The magazine is then sent directly to our database of investors. Our aim is to improve the visibility of the opportunities, to improve efficiency in the private space" says Steve Torso.
"The investor database consists of several thousand wholesale, high net worth, institutional investors, ASX listed companies as well as the entire private equity and venture capital industry".
Private equity can be used for many purposes in today's market. From providing growth capital, repaying bank debt or providing existing shareholders with a partial or full exit.
Wholesale Investor aims to introduce hundreds of private deals to their investor database each year through the magazine and website, providing the industry with a central portal to view these private opportunities.