What is Private Equity?

Private equity is capital infused into a company without going through an issue of publicly traded stocks or bonds. The money comes from well funded investors – be they individual high-net worth investors or venture capital funds – who seek early entry into a promising start-up in need of seed capital or a young firm seeking capital to expand.
One of the world’s largest private equity investor is Kohlberg Kravis Roberts & Co or KKR, which will inject private equity funds into either a languishing firm with good prospects of a turnaround or a new firm for which they feel long-term value creation is possible. KKR stays deeply involved in the management of its portfolio companies to revitalize the business and provides private equity resources for a period of at least five years.
Private equity investors reap huge rewards when their portfolio companies are large enough and successful enough to go public in an initial public offering (IPO).

How does private equity work?

Many private equity firms, including KKR, are in the business of the leveraged buyout or LBO. They do so by starting an internal fund and raising capital from such as sovereign investors, large pension or endowment funds, institutional or private investors. They then beef up their funds by taking on substantial debt as well to buy a stake in a company which is significant enough for them to demand active management of the company. It is sometimes the case in an LOB that existing company management is replaced.
The company is then taken private, restructured and profits realized by taking it public again. The private equity fund hopes to realize more than enough gains to pay off the debt and have enough of a tidy profit leftover.
Private equity is a significant influence and it is estimated as much as US$760 billion are pooled in private equity funds in 2009 for potential deals.

Why do I need to know what private equity is?

Private equity is a term that is commonly used in investing articles in the news.  Many large pension and college endowment funds (ie Harvard) invest in private equity.


http://www.abcsofinvesting.net/private-equity-investment/

I thought this article would be of some interest to our readers who deal with private equity lending, or are interested in getting a loan but have poor credit, and therefore the banks will not help you out.  Give us a call at 331-4567 for further information or to book an appointment with Shawna if you have any mortgage or debt issues.  You can also email us at info@integrabenefits.ca

Home Equity Loans

You can use the equity in your home to access money and to obtain lines of credit and mortgage refinance. The equity in your home can also provide a down payment on the purchase of a new home. One of the most popular ways that people are making use of the equity in their homes today is through home equity lines of credit.

Once a person has been approved for and granted a line of credit, they can write a check against their credit line when they need money. Typically, the home mortgage interest rates for these equity lines of credit are lower than many other loans and types of credit lines. Another benefit of home equity lines of credit is that they often do not have any closing costs attached to them.

People use home equity to obtain cash for many purposes. They may need money in the event of an emergency. Someone may use home equity to obtain money to pay for repairs, expansion and other forms of remodeling on their home. This could be anything from putting on a new roof, to residing the house, adding an addition to the home or building a garage. Money may also be used to buy new furniture or appliances or other high dollar items for a home. If someone needs to buy a new refrigerator or even if they want to add a home entertainment system to their house, they can do so using their home equity line of credit.

Cash from home equity may also be used for other reasons. Sometimes people take out a home equity loan or line of credit to obtain finances to help pay for their children’s college education. Some homeowners may access equity through a home equity loan or second mortgage in order to use the money for debt consolidation or debt relief. People may also use the money to buy a new car or even to pay for a vacation.

Money from equity on a home can also be accessed in order to pay for a down payment on another home. Some homeowners use their equity to take out a home equity loan, line of credit or second mortgage. They may use this money to pay the down payment on a vacation home or a second home.

Another way to obtain money through equity is by refinancing. At times when home mortgage interest rates are on a decline, homeowners often are refinancing a mortgage so that they can get a new low mortgage rate. Using equity from your home is also a great way to have money for a new home. Many people are already doing so. They will use the profits from the sale of their old house as down payment on their new house.

Many homeowners are recognizing the value of putting equity into their homes. By having equity built up, they can access money through lines of credit, loans, and refinancing and even second mortgages. This money can be used for just about anything from fixing up their current home, to paying for a child’s education, buying a new car or even as down payment on a new or second home.


http://www.yourloan.ca/loan-articles/home-equity-loans/

Buying a house is one of the biggest decisions you will ever make. Finding the right mortgage to meet your financing needs can seem like a difficult task. However, in today’s world you have choices when you apply for a mortgage. You do not have to sign whatever papers a lender puts down in front of you. The Internet has become a great source to help anyone looking for a mortgage.

Using the Internet, you can find valuable information and resources about different types of mortgages. You can search for the mortgage that best meets your needs, and you can find competitive interest rates. Even if you have poor credit you can get a fair interest rate.

If you have had some problems with your credit in the past, you will want to obtain a copy of your Canadian Credit Report. If you are married, you will want to get a copy of your spouses too. Look over the report carefully to make sure there are not any mistakes. Now will be the time to dispute any mistakes on your credit report before potential lenders view this information.



Perhaps you are working with a mortgage broker. If you are, they can help you find a lender that best fits your needs whether you have good credit, bad credit or very little credit. Be up front with your broker and tell them about any problems you have had in the past. A good mortgage broker will be able to help you overcome just about anything so you can get a mortgage for your new home.

Arm yourself with as much financial information as possible before setting out on your quest for a mortgage. For example, consider having a mortgage broker or negotiating agent. They can help you find a mortgage that will be tailored to your needs.

Some Types of Mortgages

Fixed Mortgages: Not all fixed mortgages are the same. They offer a fixed interest rates for 1,2,3,4,5,7, 10 and sometimes even 15 or 25 year terms. When you select a longer term, you know that the interest rate and payment will not change during the term.

Open Mortgage: If you plan to pay back the entire mortgage within 6 months to one year, you would probably want an open mortgage. You will not be penalized for paying the loan back early. This is the way to go if you will be coming into a substantial sum of money or will be moving again very soon.

Variable rate mortgages: When you select this type of mortgage the rates will change, usually on a monthly basis. They change depending on current rates. In some cases the payment will stay the same during the term.

Easy Start Mortgages: These mortgages are an excellent option for first time buyers. The homebuyer will have low mortgage rate for a 5-year term. Ideal for the first time homebuyer, this mortgage gives the homebuyer a special lower interest rate.