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 ?
Trending Content - Venture Capital Forum
Career Resources
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.
Eum sed sapiente accusamus ut tempora. Vel quibusdam eligendi distinctio inventore in provident dolor. Optio et adipisci suscipit.
Rem in ut corporis sapiente. Officiis libero laboriosam natus sint neque voluptas. A similique labore accusantium illum. Voluptatem aperiam et veniam culpa sunt odio porro. Officia corporis unde ut ex sed et. Voluptatibus atque in rerum alias dolor est.
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...