Private equity funds (Private Equity & Venture Capital) are alternative investment vehicles to traditional instruments that invest resources in private companies that have high potential for growth in exchange for shares. This injection of capital is complemented by an added value: advice on specific problems, credibility with third parties, professionalization of management teams, disposition to new business approaches, experience in other sectors or markets, etc. The purpose of private capital is to contribute to the opening, expansion and development of the company, in order to increase its value.
One of the critical aspects for venture capital firms, regardless of the investment model, is to have the necessary talent to direct or advise (Board members) in the projects in which they decide to invest. In this sense, as headhunters we are an ideal link since we are in permanent contact with Managing directors and have an understanding on the business strategy of the client and its investees.
In general, the investment fund seeks successful first-level professionals who have demonstrated their ability to grow a business profitably. It is for this reason that entrepreneurial skills are demanded since these investments require leadership, initiative, decision-making capacity, team management, due diligence experience, purchase and sale of companies, ability to take risks, international experience...
These types of skills fit very well with senior professionals who are not linked anymore to the corporate world and who want to capitalize on their experience.
There are different models depending on the type of investments that are carried out:
- Seed capital investments: they invest in projects that are still in the initial stage of the company's development.
- As an entrepreneur (or venture capital): they look for businesses at early stages, not yet consolidated in the market.
- Expansion: these are companies in a situation of expansion opportunity; the results depend on the capacity to increase their cash flows.
- Growth: they associate with companies in a mature stage with greater capital needs.
- Restructuring: they are companies in situations of insolvency.