TitleCard Capital – Management Team and Investment, The Keys to Private Equity Success
Private equity groups such as TitleCard Capital are vitally important financial vehicles who
can have a huge sway on global markets and economies. For the uninitiated these private equity groups operate by pooling money from investors and then invest heavily and across a diverse range of stocks, futures and even properties, looking to make both themselves and their investors as much money as they can, either by way of dividends or solid returns on investments. The two keys to a private equity group being successful are the investors, and the high profile management team who head up the company. Let’s take a look at why these two pieces of the puzzle are required for this to work for all parties.
Investors are of course vital to this operation because it is these men and women who bring the money in. When looking for investment a private equity group will seek out the wealthiest men and women who are looking to invest, because managing a single investor who has $250,000 is far easier than managing 10 people who invest $25,000 each. Something which private equity groups need to manage well is their relationship between themselves and the investor, something which changes over time. For example a new investor will be give the full sell in terms of why they should invest with the company, from there on in the results will convince them that they have made a great decision. The management of a relationship with an investor is key to them investing more in the future and keeping their money in the pool, which often requires more than just good results.
High Profile Management Team
To put it in its simplest terms a private equity group’s management has 3 key roles which are to ensure investment is flowing at all times, to make the right investment for its clients and of course, to know when to get out and move on. All managers within a private equity group need to be singing from the same hymn sheet, investment managers need to know where the money is going to tell their clients and those within the group need to understand how much money is coming so as to plot their investments. Another responsibility for a management team at a private equity group is to ensure that they maintain a positive reputation for their company. If a private equity group begins to gain a poor reputation then the word will spread like wildfire and before they know it investors will be taking their cash out and nobody will be looking to use them. In maintaining a reputation the management team need to not only continuously deliver results, but trade and deal with their clients in an ethical and upstanding way.
There is of course a lot more detail which goes into this type of investment vehicle but at its most basic level it is all about the investors and the management team.