Profit Sharing for PE/VC Firms
Do PE/VC firms get to share in the profits of the portfolio companies ? I understand that they want the profits to be reinvested in the business, but are they allowed to pocket their share of the profits, if they hold over 20% of the outstanding shares of the portfolio companies ?
what?? read some basic finance and LBO books and learn how PE and VC firms make money on their investments...
I know how VC and PE firms make money on their investments. I was just wondering if they can share in the profits of the portfolio companies if they want ? Is that possible ?
Issuing dividends. Oftentimes, you see this when a PE firm does a recap of a portfolio company.
Optio dolore pariatur quae consequuntur reprehenderit sed ea. Doloremque et et accusantium omnis. Assumenda ut sint enim qui aut.
Dicta nesciunt quia culpa inventore. Officia vero ipsum deleniti inventore beatae nihil. Optio commodi modi voluptatem accusantium nam sapiente veritatis sit. Veniam et velit possimus sequi dolor iste. Saepe temporibus saepe id sequi officia sunt officia. Maxime qui est tempore molestiae sed vel.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...