Fueling Innovation, Building Futures. Your Partner in Private Equity.
Area of Practice
Growth Capital
Growth capital is a type of private equity investment made in relatively mature companies that are seeking to expand or restructure their operations, enter new markets, or finance a major acquisition without changing the overall control of the company. Unlike venture capital, this funding is typically provided to profitable companies with proven business models that require capital to scale up their business.
Real Estate
Private equity in real estate involves funds that acquire, develop, manage, and sell real estate assets. This can range from residential and commercial properties to industrial and hospitality assets. These funds raise capital from investors to purchase properties, often with the goal of improving them to increase their value and generate returns through rental income or a profitable sale.
Mezzanine Planning
Mezzanine financing is a hybrid of debt and equity financing. It is typically used to finance the expansion of an existing company or as part of a leveraged buyout. This form of capital is junior to traditional debt but senior to equity. It often includes a combination of loans and warrants (options to buy shares), giving the lender the opportunity for higher returns if the company performs well.
Leveraged Buyout (LBO)
A leveraged buyout is a financial transaction where a company is acquired using a significant amount of borrowed money (leverage). The acquired company’s assets are often used as collateral for the loans. The goal of an LBO is for the acquiring firm to drastically improve the acquired company’s value, pay off the debt, and then sell it for a substantial profit within a few years.
Fund of Funds (FoF)
A fund of funds is an investment strategy where a private equity firm raises capital and then invests that capital into other private equity funds rather than directly into companies. This approach offers investors a way to diversify their exposure to different private equity sectors, strategies, and geographic regions with a single investment, while also gaining access to top-tier, often closed, private equity funds.
Venture Capital (VC) Investments
Venture capital is a form of private equity that focuses on providing financial backing to startups and early-stage companies, typically in high-growth industries like technology or biotechnology. VC firms invest in these companies in exchange for an equity stake. This type of funding is generally high-risk but offers the potential for exceptionally high returns if the company succeeds and is eventually sold or goes public.
Explore Our Remarkable Private Equity Solutions
Discover exceptional value creation and strategic advisory for all types of private enterprises. Benefit from our expertise in handling everything from growth capital to complex leveraged buyouts.
A.L.C.A.R.S Private Equity Solutions Team
A.L.C.A.R.S Private Equity Solutions team provides investors access to broadly diversified and thematic multi-manager portfolios, co-investments, impact investing strategies and custom solutions.
$350M
Invested in Real Estate Y/E 2024
24
Distressed Debt Acquisitions Y/E 2024
275%
Increase in ROI Y/E 2024
$780M
Investment for Family Offices in Y/E 2024
★★★★★
My experience with ALCARS Private Equity was exceptional. The investment strategy was meticulous, the client service was outstanding, and the returns were robust and reliable. I highly recommend ALCARS for private equity partnerships.
Community Trust Fund & Partners (Cayman Islands)
High Returns in our A.L.C.A.R.S Private equity – Private Credit Funds
A private credit fund is an investment fund that pools capital from investors to provide debt financing, such as loans, to businesses that are typically not publicly traded.
These non-bank lenders offer tailored debt solutions, often to small and medium-sized enterprises, and generate returns through interest payments, origination fees, and potentially equity participation.
Private credit funds operate outside of public markets, offering potentially higher yields than traditional fixed-income investments in exchange for illiquidity and greater risk.
Frequently Asked Questions
What is private equity?
Private equity is a form of investment where capital is raised from institutional investors and accredited individuals to acquire stakes in companies not listed on a public stock exchange. It differs from traditional public markets by focusing on direct investment, often involving active management and a long-term approach to growing a company’s value
Who are the typical investors in private equity?
The capital for private equity funds primarily comes from large, sophisticated investors, as it requires a long-term commitment and a high tolerance for risk. These investors typically include institutional entities such as pension funds, university endowments, sovereign wealth funds, and insurance companies, as well as high-net-worth individuals.
What is considered a distressed company?
Companies in distress are either in danger of defaulting on their loans or have already done so. Despite a firm’s inability to fulfil part or all of its debt obligations, creditors of a troubled company should be aware that the instruments they own may still be worth something.
What is the 80/20 rule in private equity?
The typical split in profits between LPs and GP is 80/20. That means, the LP gets distributed 80% of the profits on an exit (after returning their initial capital) and the GP keeps 20% of the profits.
What is Distressed Private Equity?
In distressed private equity, firms invest in troubled companies’ Debt or Equity to take control of the companies during bankruptcy or restructuring processes, turn the companies around, and eventually sell them or take them public.