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Obtain the latest news on the private equity field

Are you looking to get the latest on private equity funds? Then you should consider using online news websites that cover these kinds of stories. You can find out what funds the private equity firms are launching. If you're a professional investor, you can use these websites to learn what and how much private equity capital start-up companies received. In addition, you may want to find out if there will be seminars or conferences on private equity lenders.

I recommend: PEWEEK is a weekly online publication that analyzes the whole private equity market. This is an ideal publication if you’re an institutional investor or lender. AltAssets is another news outlet that covers private equity companies. You can get the latest news on private equity financing.

Browse blogs to get the latest on private equity firms

Blogs are a great way for getting the latest on equity investment firms. The great thing about blogs is that you can discuss the articles with other participants. Some of the topics you might find on blogs for private equities are: management and how companies can obtain venture capital. In addition, these blogs can provide links to other articles on private equities.

I recommend: Private Equity Blogger covers articles on various areas in the field, such as employment, layoffs, and management. If you’re looking for a job in the private equity field, there are articles on how to write a resume that’s specifically targeted for this industry. Mike Devlin is another blog you’ll want to check out.

Rely on reports to conduct your research in the private equity field

If you need to conduct research on the private equity field, then take advantage of reports. These websites provide comprehensive information. Not only can you read the analysis on the latest developments in the industry, you can download these reports.

I recommend: PEI Media sells reports on private equity. For example, you can purchase a report on the largest private equity firms in the world. The website gives you the latest on deals, particularly mergers and activities. Dow Jones Financial Information Services also sells reports on private equity.

Helpful advice for making the most of this Guide

• •  Consider joining a professional association. A private equity organization can introduce you to other firms as well as professionals, which in turn can keep you on top of developments.

Guide to Private Equity Offerings

Raising capital can be a CEO's biggest challenge

By Elaine Grant, Principal, Muddy Dog Media LLC

1. The obvious — the funds you need to grow your business
2. Partners who can bring management expertise to your board
3. Connections with other portfolio companies that can help you in a myriad of ways
4. A reason to develop a clear exit strategy through acquisition or an IPO and preparation for that exit

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Learn the ins and outs

Private equity is such a complex, nuanced enterprise that if you want to make a good deal, you must drill down into the details and understand what you're getting into.

I recommend: If you read nothing else, read Private Capital Survival Guide.

Subscribe to a directory

There are several directories, though not cheap, of all manner of private equity firms.

I recommend: For free listings of private equity firms, visit PrivateEquity.com. Or check out Private Equity Info, which has one of the least expensive options around — it starts at $85 for a one-month subscription and offers a free demo of its online database, which you can search by industry, location and other key terms. Or try NVST's Capital Motion, a hybrid program that helps entrepreneurs present their companies to the private capital marketplace and allows you to search a private equity directory.

Get connected

Cold-calling venture capitalists and institutional investors may leave you, well, cold. It's best to get an introduction; one of the most tried-and-true ways to do so is to hire an investment banker, who will help you prepare your 'book,' which you'll use to present your business to investors.

I recommend: PrivateEquity.com has a good list of investment banks, or check Google's list of investment banks. Or try an intermediary, an organization that links businesses with investors, such as consultancy Regulation D Resources.

Try the government

Believe it or not, federal and/or state government sources may be willing to invest in your business, especially if you can show that by doing so they'll help you create jobs in areas that need economic development.

I recommend: Seek early stage funds from a Small Business Investment Company (SBIC). SBICs are public/private partnerships between a private investment firm and the Small Business Administration (SBA). SBICs provide equity financing, loans and management assistance. Get info on SBICs from the SBA or the National Association of Small Business Investment Companies' (NASBIC). To find an SBIC in your area or industry, search the NASBIC database.

Helpful advice for making the most of this Guide

• •  Look for money long before you need it. You'll attract better partners and more funds if you're not desperate — not to mention getting better terms.
• •  In a presentation to investors, focus at least as much on risk and how you'll manage it as you do on your company's fabulous potential. Investors care deeply about risk.
• •  Raise enough capital. Rather than raising just enough to get to the next round, go further. Murphy's Law always applies in business forecasting, and it may take you longer than you think to reach that next level.
• •  Prepare early investors for the later dilution of their investments. Ask, 'Wouldn't you rather have a 20 percent stake in $500 million than a 50 percent stake in $100 million?'

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Get private equity capital training

Breaking into the private equity field can be tough. For one thing, it's difficult to find a job in this industry. Secondly, even if you find a job with the private equity company, you'll likely find it hard to get professional training. It's important to invest in private equity training on your own. Not only can you can learn about private equity lenders, but you'll understand the terms, such as valuation or corporate governance.

I recommend: Wharton Entrepreneurial Programs provide training designed to help you get internships and jobs with private equity companies. In this program, you’ll learn the fundamentals of venture capital, such as due diligence and exit strategies. PrivateEquityTraining is another website to visit. Although it is not a school, you can use this company’s guide to understand the basics of private equity. For example, you can learn about LBOs (leveraged buyouts).

Use a private equity directory database to search for companies

Now that you have a solid knowledge of the private equity field, you'll want to look for companies. The best way to find them is to look in a private equity directory. Get crucial information, such as contacts, executive biographies or geographic locations.

I recommend: Private Equity Info has more than 1,500 private equity firms that are not just in the U.S., but in Europe, Asia, and the Pacific Rim. You’ll get information such as biographies on executives. At PE Database, you’ll be able to access more than 1,400 companies and learn about the private equity funds these companies manage.

Learn about private equity financing

You cannot ignore private equity financing, which plays an essential role. This is how entrepreneurs are able to get financing to start their companies. Two of the best places to learn about this area are from law firms and schools. Sometimes, the schools offer one-day seminars that will focus on private equity.

I recommend: Latham & Watkins law firm specializes in private equity financing, particularly LBOs (leverage buyouts). This business has been operating since the 1970s. Michigan Ross School of Business is another place to check. This school not only offers conferences, but it focuses on research and teaches students how to use equity capital to foster business growth.

Helpful advice for making the most of this Guide

• •  Establish relationships with entrepreneurs or executives in the industry in which your private equity firm invests. This can help you in getting leads on new start-ups or mergers and acquisitions.

Guide to Private Equity Key Terms

Study these key words to get started in the world of private equity

By M. Krasniak, Freelance Writer/Editor

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Private equity

Private equity is a source of finance in which the funds for investment are raised from institutions and high net-worth individuals. Private equity firms use the money raised from those sources to invest in other firms for short periods of time.

I recommend: Read the detailed discussion of private equity at Investopedia.

Venture capital

Venture capital is the money invested in different companies as well as any monies that are available for investment in the future. Venture capital focuses on companies in the beginning stages of development and companies that are still just 'ideas.' Venture capital is one of the oldest types of private equity.

I recommend: SearchCIO-Midmarket.com offers this detailed discussion about venture capital and what it has to do with private equity.

Investment banking

Investment banking, as an industry, matches those who need financing with those who want to invest their funds. Investment banking firms often help private equity firms identify potential targets for purchase, and assist in arranging financing through so-called private placements. It pays for private equity firms to maintain a relationship with investment banks because this is an important source of information about targets for buyouts.

I recommend: wiseGEEK offers a helpful definition and explanation of investment banking.

Leveraged buyouts

Leveraged buyouts are very controversial transactions sponsored by private equity. In a leveraged buyout, a private equity firm uses significant levels of debt financing to purchase a public firm and make the firm private. This type of transaction is the 'bread and butter' of private equity.

I recommend: When you’re looking for a comprehensive explanation of leverage buyouts, check out The Library of Economics and Liberty.

Private equity fund

A private equity fund is a partnership with a finite life (usually 10 years) that is set up to provide private equity financing. Private equity financing is used for firms that do not want to secure public financing, either in the form of a stock issue or debt issue. The private equity fund is sponsored by a general partner who seeks limited partners to provide funds. The private equity fund then seeks out possible firms to buy in the public market.

I recommend: Farlex provides TheFreeDictionary.com and presents an excellent definition and discussion of private equity funds.

Mergers and acquisitions

Mergers and acquisitions are the most visible area of private equity involvement. Private equity funds often conduct mergers and acquisitions, planning to turn around the target firm or resell the target to another fund. Mergers and acquisitions are the main area where investment banks help private equity firms.

I recommend: Check out QuickMBA.com to find out what mergers and acquisitions are and how they're related to private equity.