Sourcing a Transaction
This series is focused on how private equity firms source attractive investment opportunities.
Sourcing an attractive investment opportunity as a private equity professional requires a tremendous amount of work. To provide an idea of the number of opportunities evaluated before making a new platform investment, I have included a sourcing funnel with an explanation for the amount of work required at each step.
In Private Equity, it only takes one asset purchased at the right price to build an empire or retire early. Beyond the outlier outcomes, however, is the need to consistently find investment opportunities to generate attractive risk-adjusted returns for investors. In this lesson you will learn about two approaches private equity firms take to source deals.
This lesson defines a "good business" through the lens of a private equity investment team. The content also provides a mental framework that can be used to evaluate whether or not to move forward with a particular process.