Veteran Private Equity Expert, Stephen Dowicz, Shares Thoughts on Private Capital

NORWALK, Conn., June 21, 2017 /PRNewswire-iReach/ -- Veteran private equity expert, Stephen Dowicz, shares thoughts on private capital.

Capitalizing a business typically involves taking an owner's personal cash infusion and combining it with borrowed funds and investments from outside parties. In exchange, these outside parties receive an ownership percentage known as equity. Companies that choose to partner with private individuals (or a group of individuals) rather than the public for their investments is private capital. Private capital is usually a one-on-one interaction between the company and the investor.

Private capital is a more dynamic investment practice than investors in public companies. Private capital fund managers tend to be more actively involved in business strategies and may also take a role in directly managing assets. With private capital, the goals are to streamline operations, strengthen the company's management team, and bolster the company's strategic position. A company can pursue private capital opportunities at any time during its life cycle. It can be used as a method to start a company, or to help it grow. Here are a few private equity strategies to keep in mind before investing.

Real estate. Private equity real estate entails combining investor capital to invest in ownership of real estate properties. With core real estate private equity, investments are made using low-risk and low-return strategies, Stephen M. Dowicz reports. Cash flows are predictable. Core plus involves moderate-risk and moderate-return investment strategies in properties. This also requires value-added element. Value-added private equity involves the purchase of property to renovate and sell at a gain. This is medium-to-high risk/medium-to-high return. Finally, opportunistic is a high-risk/high-return method that requires enhancements such as raw land.

Venture capital. This type of private equity refers to investments that are made in start-up companies and younger companies that are not yet profitable. The goal is to produce outside returns by identifying—and investing in—rising and promising companies, then realizing a profit from a successful exit.

Growth capital. Conversely, growth capital investments are those private equity investments made in mature companies that have a proven track record and are looking for capital to expand or restructure operations, penetrate new markets, or acquire another asset. Companies that tackle growth capital tend to be more mature than venture-funded companies.

About Stephen Dowicz: Real Estate Mogul Stephen Dowicz is a philanthropist and successful businessman in the spa industry. He has made many charitable contributions over the course of his career and is an expert in private equity matters.

Media Contact:Phil Santinoceto, The Data Workshop, 509-281-6232, PR@thedatawork.com

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SOURCE The Data Workshop