What are Private Equity funds and how does it work?

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Private Equity funds are an investment alternative that is becoming popular in the Mexican market. Through these funds, the investor can spread out the entrepreneurial ecosystem in exchange for profitability.

In the investment seeking to grow the wealth of investors we have venture capital funds as well known as private equity funds. With this investment model, investors do not only invest in the entrepreneur industry, but also be involved in the needs and management of the company in which they invest. In this way, they increased the added value of the business model with the goal of achieving better returns.

This is about an investment vehicle that seeks the development of unlisted companies. In general, it manages two types of investors. thelimited partner and general partnerWe have one focused on providing capital to the fund, and another that specializes in evaluating the best projects and markets to invest.

How many types of equity investments exist?

  1. Public equity: investments in public listed companies and anyone can participate (as an investor)
  2. Private equity: Investments in private listed companies which only through fund and other investment strategies gets the investors.  

Through Private Equity funds , the investors accelerate and multiply companies growth, benefiting the business and economic ecosystem. How does it work? With an investment strategy managed by corporations that invest third-party resources in high growth potential companies.

How many types of private equity funds exist?

Alternative investments like private equity are available for any type of investor for private companies, therefore, they are unlisted and have better long-term returns. 

Within private capital are diverse types of investment according to the company stage status at the moment of the investment.

Venture Debt

This investment model is for those companies or startups that have low cash flow and find difficult access to capital in traditional alternatives. In this model, the business valuation depends on which stage is the company, and the investor can also be a mentor.

Venture Capital

It is for companies in early stage or development, and has potential to grow in the industry. With this type of investment the company already has a business model, and a few years of operation. To invest in Venture Capital, it is required to have a business validation or due diligence.

Private Equity

 How do private equity funds work? Private equity funds raise money from institutional investors. Capital injection in companies with more consolidation or in an advanced maturation process. Also known as Growth Capital, it is perfect for companies seeking new markets or remain as reference in their industry.

How do private equity funds work?

This model has had exponential growth in Mexico and LATAM.  Investors allocated their capital in high-potential companies through a long-term investment, and most of their investors are institutional such as retirement savings funds, banks and financial institutes.

The average investment per company ranges from 1 million to 10 million dollars, these projects are mostly innovative startups based on technology. An important aspect is the support given to companies by consulting, in order to achieve a better management of the investments.

In the private equity industry, these funds not only trigger the growth and innovation of the entrepreneurial ecosystem. They are part of the growth of new companies until they manage to consolidate in the industry and, in some cases, become unicorns and get valued in a billion dollars or more.

In Mexico, the first unicorn was Kavak, a Mexican company that started to operate in October 2016 with the business proposal of offering absolute guarantee for the user who decides to buy a pre-owned car, giving the best price on the market.

From Venture capital to WORTEV CAPITAL

  • Innovative business model that is framed in Venture Capital.
  • One of the main proposals is that anyone can invest.
  • Companies that are capitalized by WORTEV CAPITAL are monitored from the financial to the operational area, in order to help them reflect real growth.
  • With the WORTEV CAPITAL model, entrepreneurs manage to minimize their risks.

WORTEV CAPITAL has a business accelerator that walks with the companies from the core until they detonate their growth. The mission is to support the entrepreneurs in their product or service development, hand to hand with the best multidisciplinary specialists, to achieve better results in the least time possible.

Denis Yris, founder and CEO of WORTEV CAPITAL, explains that one of his main goals is to boost the entrepreneurial ecosystem and provide the intelligent capital required by the companies to grow, and ensure the risk balance in investors' assets.

Business model innovative

From the business accelerator or WORTEV, entrepreneurs have access to a multidisciplinary and specialized team that offers business engineering, information technology, as well as administration, finance and human resources advice.

The WORTEV CAPITAL investment model seeks to support with its own specialized services and give results to its more than thousand investors. Currently, the portfolio of venture capital firms promotes about 8 Mexican companies with its innovative private equity model.

WORTEV CAPITAL choose companies for capitalization, following three aspects:

  1. Entrepreneurs with spirit and grit
  2. High potential scalable business models
  3. Projects that belongs to the venture capital firm sectors 

The WORTEV CAPITAL's investment portfolio is structured to boost the growing economy and promote more startups in order to create a positive impact to everyone.

How does this fund work?

  1. This investment fund is simple, accessible and competitive. You only need 2,500 dollars
  2. As an investor you can earn up to 24% of annual cumulative return.
  3. Two steps to start: complete the registration and sign the digital contract.
  4. You have WORTEV CAPITAL support and monitoring, to clarify any questions regarding your investment.

The PPrivate Equity funds are key to investing in innovation as well as an alternative to bet on a growing economy and grow your money. Is a great start to become an investor in this industry.

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If you are interested in innovative investment vehicles, learn more about private equity funds and grow your money.

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