Private Equity vs. Venture Capital
What is the difference in the middle of Venture Capital and Private Equity?
The text autograph album solid that would be obdurate idea by most B-School professors is that venture capital is a subset of a larger private equity asset class which includes venture capital, LBO's, MBO's, MBI's, bridge and mezzanine investments. Historically venture capital investors have provided tall risk equity capital to opening-up and very old stage companies whereas private equity firms have provided auxiliary traunches of equity and mezzanine investments to companies that are more period in their corporate lifecycle. Again, traditionally speaking, venture capital firms have well along hurdle rate expectations, will be more mercenary similar to their valuations and will be more onerous in their constraints going on for giving out than will private equity firms.
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