Private Equity Offerings

Cherrytree Group, LLC can assist with private equity transactions, including financing start-up companies, or ventures, mergers and acquisitions, the financing and formation of funds, as well as raising capital to purchase business or particular assets. The Cherrytree Group, LLC can provide creative solutions to the most complex issues in evaluating, structuring, negotiating, and consummating private equity transactions.

Private equity consists of equity securities in operating companies that are not publicly traded on a stock exchange. Investments in private equity usually come from either a capital investment into an operating company or the acquisition or purchase of an operating company. Capital for private equity can be raised from "friends and family" but is raised primarily from institutional or private investors. There is a wide array of types and styles of private equity. Investors in a private placement do not need to receive a prospectus and private placements can be completed in a shorter time frame with less complexity and expense. There are detailed offering documents required to complete a private placement, and the need to satisfy an exception to registration with state or federal securities regulatory authorities.

The most common investment strategies in private equity are leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital. A leveraged buyout transaction, which is when the private equity firm buys majority control of an existing or mature firm, differs from a venture capital or growth capital investment. This is when the private equity firm typically invests in young or emerging companies, and doesn’t often obtain majority control.