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How can a private equity fund introduce fresh capital in a Co it has acquired? |
if a private equity fund acquires 100% stake in a company with a deffered payment of final 25 %. how can it introduce more capital in the company , what could be the threat with the resulting action for the fund and the old owners? The company could sell shares to the new owner or the new owners could lend money to the company. The fund will need to make the final 25% payment or they couls be sued by th old owners. If title to the company is transfered back to the old owners due to non-payment, the fund could lose its investment if it purchased shares. A loan would still be repayable to the fund by the company. |
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