Do private equity investors ask for equal % of stocks for the amount of capital invested by them. Eg. Total capital funding required INR 10 lacs and an investor invested INR 5 lacs, so will he ask for 50% ownership in the company.

15th April 2013 From India, Mumbai


Hi Akash !
The question asked seems to be very open. Will he ask? Well he can ask for anything. The question I guess should have been what all are various scenarios. Well once again this is not exhaustive yet a few of these are:
1. Providing 100% equity for the share bought;
2. Taking proportionate equity share and some share warrants;
3. Equity shares with power of Right of First Refusal;
4. Equity and Preference Shares;
5. Equity Shares with minimum profit commitment
The scenarios can be many... We can keep adding them up here.... :)
19th April 2013 From India, Gurgaon
I got to know about private equity from this video series: http://gradopedia.com/job-function/asset-management/private-equity/
10th September 2015 From India, Mumbai
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