Câu hỏi thường gặp

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1. What is private equity?

   Private equity encompasses many disciplines and derives from the practice of investing primarily private capital in primarily privately held companies, real estate or other assets.
   
   PE firms establish funds that raise capital from investors – who are referred to as limited partners, or LPs. The private equity firms – known as general partners, or GPs – invest their own capital along with the capital raised from investors. With the combination of equity and the borrowed funds, the general partners buy companies that they believe could achieve significantly greater growth and profitability with the right infusion of talent and capital.
   
   Private equity GPs typically hold companies for about three to seven years, and then sell them, hoping to realize a gain on the sale as a result of the increased value they have created for the portfolio companies during their period of ownership. If there are no profits, PE partners not only make no money, they lose their own equity investment.
   
   The size of the capital gain directly relates to the increase in value the PE firm has created. Between 1991 and 2006, private equity firms worldwide returned more than $430 billion in profits to their investors, according to Private Equity Intelligence (London), 40% of which were public and private pension funds and foundations.

2. What is a leveraged buyout?

   Viet Tin Capital engages in management-led buyouts, which are the purchase of companies in cooperation with the current management. A combination of equity and debt is used for the typical transaction. The equity mostly comes from VTCC’s various funds and other “co-investors” and the debt typically comes from major banks.

3. What is growth capital?

   Growth capital is money that invested in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition usually without a change of control of the business.
   
   Companies that seek growth capital are likely to be more mature than venture capital funded companies, and they are able to generate revenue and operating profits but unable to generate sufficient cash to fund major expansions, acquisitions or other investments.

4. What is leveraged finance?

   Viet Tin Capital's high yield investments consist of structured vehicles known as Collateralized Debt Obligations (CDOs) that primarily invest in a portfolio of non-investment grade assets. An equity investment in the CDOs affords investors the opportunity to diversify their holdings and gain exposure to the high yield fixed income and leveraged bank loan markets.
   Mezzanine is the level of securities that resides between common equity and senior debt and includes preferred stock and senior subordinated debt. Mezzanine investments have high risk adjusted returns with significant current income.
   Distressed or "strategic" investments are made in the debt of operationally sound, financially distressed, U.S. middle market companies using a control-oriented strategy that focuses on the debt of smaller, less liquid issuers in industries in which Viet Tin Capital has demonstrated expertise. Distressed investing offers investors the opportunity to earn high, risk adjusted returns.