PE, VC, SMEs and Angel Investors
Both private equity (PE) and venture capital (VC) invest into private companies. They believe business development is more effective without the distraction of being on a stock market. PE and VC will provide capital to follow a pre-agreed value creation strategy before seeking an exit through a listing or through a buy-out from major competitors or other financial institutions.
The main difference is private equity tends to invest in larger, later stage companies whilst venture capital focus is at an earlier stage, looking to achieve a higher upside on exit.
Venture capital will look for innovative, entrepreneurial Small to Medium Enterprises (SMEs). Successful VC investment tries to identify SMEs with strong management teams, a competitive edge in large established markets, a clear business plan and well defined value creation strategy.
Angel investors is a term for individual private investors who take significant stakes in SMEs in addition to providing direct input into the day to day business through a board or management position.
CSS Partners aims to provide private investors access to SME opportunities, with strong existing management teams and exciting business development plans, without the need to be involved in the running of the business. Private investors can leverage our experience and knowledge in this sector and become arms’ length angel investors.
At the same time, if any investors feel they can offer specialist, value adding skills to a business and propose to take on more of an angel investor role; we would be more than happy to put them in direct contact with the company directors.