7+ Private Equity Investment Proposal Templates

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In every business venture, the opportunity cost is always something to consider. Opting your company to private equity, instead of going public, comes with several trade-offs, with the most notable change being that you will no longer be able to easily buy and sell your shares in a publicly-traded market. Make the perfect investment proposal you need for your business using any of the templates that are mentioned below.

But what comes after compromises are also attractive benefits. For one, private companies are no longer required to go through rigorous monitoring by brokers when it comes to publishing their financial performance. This gives private companies more flexibility in managing their business operations and in inviting investors to their company.

7+ Private Equity Investment Proposal Templates

Private Equity Investment Proposal Template

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In trying to acquisition public companies through buyouts or investing in private companies, the above-mentioned investment proposal template works wonders in getting investors to agree to such an investment. Create additional sources of future revenue by having another investment option in the form of full buyouts of privately listed companies. Edit and customize as per your needs and requirement. Download the template now!

Private Equity Investment Proposal

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Inspire awe in others with the right use of this private equity investment proposal template. This 7-page template has everything you could ever want: business-standard fonts, the right color space, and it is available in many file formats. Download this easily editable template through formats like MS Word and Mac Pages. All you would have to do is download the template, edit and modify to suit your preferences.

Investment Proposal Template

private equity investment proposal template
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This investment proposal template mentioned above is one of the best in town. This is not just fully editable, but you can also make this your own by customizing it the way you like best. Another added advantage of using this template is the fact that it is not just limited to a computer, but you can easily download it on any electronic device. Try it out now!

Investment Proposal for Private Equity Transaction

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5 Steps to Make a Great Private Equity Investment Proposal

A private equity proposal is no simple business proposal. It is an extensive formal document with complex parts. The following are the essential parts of a private equity proposal and a short descriptive process in coming up with each.

Step 1: Summary

The first part of your private equity investment proposal is also known as the elevator pitch or the executive summary. It is a concise exposition, usually at most half of the page long, of your proposal that paints broad strokes on what you want and what you will do if you get it. In any case, a summary should be able to keep your investors hooked and interesting to make them read the rest of your proposal. Your pitch for the investors to invest in your private equity venture continues in this part. Enumerate five, and at best seven, key points of your business that will attract them to fund for you.

Step 2: Project and Investment Overview

This is the first of the few parts where you will talk about your business. The project overview gives the investors a bird’s eye view of your project or asset you are putting up for a private equity investment. It should be able to give expansive information on your project, the details of your property, the accurate measurements and statistics of your business trends and market share.

Step 3: Exit Strategy

Like how every building is required with an emergency fire exit, your investment exit strategy offers ways on how a certain investor can pull out their funding. Enumerate instances where they can leave the investment pool and site conditions and terms. Much like the project overview but this time it focuses on the particulars of financing your business. It will have your requested amount and the type of investment you are proposing for them to follow. Also, include the estimated value for assets you expect to obtain at the end of the investment period.

Step 4: Business Timeline

This part serves as a look-back and a forecast for your project. It must provide a concise historical overview of your project up until the present as well as your business plan moving forward. In setting your project timeline, use an estimate of weeks, months, and years rather than actual dates. Overall, this part should be a balance of narrative and graphic aids.

Step 5: Market Overview and Profiles

Demonstrate the status quo of your business against its competitors and describe the demographics of your potential customers with charts and graphs. This will make this research-based part easier to understand. This part entails the work description and experience of the people in your team. You should be able to list at least three executives that are important in the project.

Investment Proposal for Private Equity Fund Sample

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Private Equity Asset Investment Proposal Form

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Elements of a Good Private Equity Investment Proposal:

When securing funding for your business set at private equity, most likely, you will only have one shot to get an investor on board with your investment proposal, so it is only important that you complete it with the basic parts. But what surmounts the need for the structure are the characteristics of your proposal to be convincing, engaging, and compelling. To make your proposal stand out, take heed of the following elements:

1. Investment Viability: The safety of investments signifies protection against devastating loss and resilience in changing conditions, especially in cases of companies under private equity. Know your numbers and give proof to your potential investors that your company can excel financially. A potential high return and a clear exit strategy are what comprise great investment viability.

2. Definite Business Timeline: Investors would want to know when they will be getting back their return on investment and profits. They also don’t want entrepreneurs to incur losses on their dime. When pitching this through your investment proposal, business timelines lay out a clear debt repayment timeline and have a solid business model to prove that your company can become profitable at a certain time.

3. Attractive Rate of Return: Investors want to pool in their funds mainly for one thing, and that is to make money. Investors are always on the lookout for companies that have quick growth and can attain a high growth scale. The significant profit projected in your investment proposal will give them the idea of how attractive their rate of return will be should they invest.

Proposed Equity Investment Project Sample

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Private Sector Investment Proposal Example

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Tips for a Great Private Equity Investment Proposal

  • Add visuals: Make use of maps, layouts, and photos so you can illustrate your business plan and processes better. Your visual elements can be scattered throughout the proposal or collected in one separate section.
  • Have an expansive market data: Your market data contains information that is not included in the market overview but is still important enough that it reinforces your private equity investment pitch. They do not need to be exhaustive, just a few pie graphs and charts that compare your own business to competitors as well as your projections of sales based on the market trends.

Types of Private Equity Investment Proposals:

Private equity investment proposals are classified according to the type of private equity funding that a company wants to receive. There are various types of these funding, but, commonly, there are four, and they are the following:

1. Leveraged Buyout Fund: This type of private equity investment combines investor funds with borrowed money to improve the profitability of the company. A company-funded through this type of investment can acquire larger companies that it can normally afford, netting a larger rate of returns once the investment pays off.

2. Venture Capital Fund: Venture capital is investment firms that usually fund startup companies and other businesses that are still at their early stages of business. Venture capitals only take a minor share at the company in exchange for their funds, making the young business grow through the control of its company management. It can be risky since these companies often have little to no track record of business, which is why venture capitals only invest in those with high growth prospects.

3. Growth Capital Fund: This type of funding is similar to that of the venture capitals, but with the target shifting to more mature companies. The private equity fund provided through growth capital enables a company to fuel its expansion. It’s less risky than venture capital funds since companies under this type already have a considerable history in conducting business.

4. Distressed Private Equity Funds: Distressed funding happens when a company tries to get firms and investors to pool funding as it faces serious financial difficulty. This type of private equity fund enables interested entities to buy shares of the company at a very low price, as long as they will provide financial assistance in restructuring the company so it can yield a return on their investments.

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