Questions to Ask a Private Equity Investor | Part 2

Questions to Ask a Private Equity Investor | Part 2


I’ve seen circumstances and cases where mid market shareholders are trapped in a private equity investment because the business isn’t able to repay more than the loans to the private equity they’re not able to attract follow on investment so all of the profit that they generate serves to really support the private equity repayments on preference shares for example or the debt to the bank or a combination of both. But you find yourself in a position where you’re not able to sell, you’re not able to attract follow on investment and it leaves the entrepreneur and the management team somewhat trapped in their own firm.

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