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Redtail Capital - Unlocking Business Value


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Family Transfer

Leveraged Buy Out (LBO)

Management Buy Out (MBO)

Employee Stock Ownership
Plan (ESOP)

Private Equity Recapitalization

Gift or Charity 

Public Offering


Private Equity

The private equity industry has exploded into a multi-trillion dollar market. Private equity funds get their money from large institutions such as public and private pension funds, insurance companies, high net worth investors, sovereign wealth funds, and others. The managers of the funds use their knowledge and expertise to purchase majority ownership in private companies.

The goal of these investors is to grow the business and either sell it or take it public. Because they command capital resources outside the capability of most private business owners, they have more options to grow the company. In many cases, the business owner may stay on with the company, having received a large payment for their equity and teaming with the investors to build out the business.

Private Equity is called "patient money" because these investors usually look at longer time horizons than many investors. Usually they will anticipate a five to seven year hold on the equity as the business grows in value. If the goal of building value is achieved, the minority stake retained by the business owner will grow as well.

This option may be attractive to you if you are looking to diversify your assets, yet want to continue to build your business. However, you usually must be willing to cede control of the company and its direction to your new business partners. Redtail Capital has established relationships with a large number of private equity firms and can help put you in front of the right potential partner.