How does a private equity investment work?
Subscription period
Investors commit a given amount: -commitment-
At this stage, the target companies are not known.
1 - 5 years
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When investments in target companies are made, investors are notified by Banque de Luxembourg and receive capital calls, if applicable.
Investors receive a semi-annual management report.
~3 - 7 years
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Portfolio management
Value is created for investors.
~7 - 10 years
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Companies may be sold at various intervals.
Companies may be listed on the stock market (+IPO+) or sold to other strategic investors (mergers and acquisitions - M&A, or Private Equity funds)
Investment period
Development period
Exit period