FREQUENTLY ASKED QUESTIONS

What is private equity?

Private equity is a source of capital apart from debt provided to help fund a business's growth or to provide an opportunity for owners to sell all or part of their business. A private equity investment firm purchases an ownership stake in the business, becoming partners with the business owners. The investment firm then shares the financial and operational risks and rewards equitably with them. Investment structures are mutually agreed upon by the private equity firm and business owners and are tailored to the specific business to maximize the benefits to all owners. Because the relationship is a partnership, the investment firm contributes its expertise to material financial and strategic decisions and works alongside management and owners to increase the overall value of the business.

Why consider funding your business with private equity?

Private equity makes sense for business owners with fast growing businesses that may not be appropriately valued by lenders or are viewed as too risky, for owners who do not wish to use debt as a source of capital or for those who wish to take money out of their business. Because there are no regular payments to the investment firm, management can use its capital to grow its business rather than make payments to lenders. Additionally, partnering with private equity firms provides management with access to a broader network of professional contacts. Private equity firms also have substantial experience in growing businesses and can lend their financial and strategic expertise to help management optimize the business's potential.

Why Aztec Equity Partners?

While Aztec shares business risk with management and assists with high-level strategic and financial decisions, business owners maintain operational control. Aztec manages a substantial portfolio, and its professionals have among them more than 60 years of experience in commercialization and operations. If you are interested in funding your business with private equity, please call our main number (888) 718-6664 or email us at info@aztecpartners.com to see if we can serve your needs.