Other Private Equity

Buyouts fund an investor’s purchase of full control of a business. This may involve (a) purchasing the majority of stock in a private division of a parent company when the parent divests it or (b) buying majority stock in a private company along with its management team in a management buyout. When buyout funding is supplemented by additional money borrowed from lenders, it is referred to as a leveraged buyout.

Acquisition financing involves the use of private equity capital for consolidating an industry segment through the purchase of other companies.

Turnaround financing refers to capital invested in a company that is bankrupt or otherwise non-performing. With turnaround financing, a party with capital and management expertise acquires the business to improve its operations.

Statistics and examples highlighting the value of other private equity are outlined below:

Since January 2002, Illinois companies have raised $4.2 billion in non-venture private equity. Illinois-based funds manage $57 billion of other private equity assets.
Willis Stein & Partners, a Chicago private equity firm, acquired Jay’s Potato Chips out of bankruptcy in March 2004. By March 2005, revenue trends were positive, the company had introduced several new products, and 400 jobs were saved.

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