Private equity fund business plan is aimed at investment professionals managing funds of collective investment contributed by wealthy individuals, wealth and pension funds, insurance companies, endowments, and other institutional investors. The Private Equity Fund Business Plan is often sector-agnostic. It tends to invest in or buy out businesses with high potential, needing additional capital and guidance to unlock growth or turn their fortunes around.

The Private Equity Fund Business Plan focuses on finding businesses with big potential that need more money and advice to grow or improve. These funds also seek companies that can consistently make good profits and grow over time, usually selling them for a profit within 5–10 years. The private equity deals can take the form of partial or complete takeovers, providing businesses with sufficient capital to fund ambitious growth plans and access to the private equity firm’s valuable experience. A good private equity fund business plan shows how the extra cash helps the company grow, supported by robust financial projections and an analysis of growth avenues, operational plans, and the external environment.

$729bn

PE FUNDING

PE funding has exceeded the $700 billion mark in 2022, marking the the second highest year of activity within the past decade.

10x–35x

VALUATION AT EXIT

Private equity funded companies tend to generate outsized returns. Prices paid per share can be anything from 10 times earnings (in M&As) to 30x earnings (IPOs).

Source: Ernst and Young – Private Equity Pulse: Five takeaways from 4Q 2022

Source 2: Moonfare – Private Equity Exits: Why Investors Should Look Beyond the Headlines

RELATED SERVICES: Venture Capital Business Plan, Angel InvestorBusiness Plan

Traits of a Good Private Equity Fund Business Plan

  • THOROUGH MARKET ANALYSIS. A business plan seeking private equity fund investment should include a thorough analysis of the target market, industry trends, and the competitive landscape. It should provide evidence of the market’s potential size and demand factors, demonstrate how the company achieves a product-market fit, and explain the strategy for carving out a portion of the market share. The market analysis for priate equity buniess plan should also figure out who the main competitors are, what they’re good at, and where they fall short. It’s important for the management team to know all about the industry to make smart decisions and succeed in a dynamic market setting.

  • CLEAR PLAN FOR THE USE OF PROCEEDS. An investor-ready private equity fund business plan must show good financial planning, prioritizing transparency and disclosure. Investors want to know the details of exactly where their money is going and how it will be used to generate returns. A clear private equity fund business plan helps make sure everyone has the same information and assures investors of the company management’s ability to think strategically and execute its plans effectively. According to a study by CB Insights, One of the top reasons for startup failure in a Private Equity Plan is a lack of proper financial planning, which includes poor budgeting and cash flow management.

  • PROFIT DISTRIBUTION & EXIT STRATEGY. Private equity funds generally dispose of their company investments within certain timeframes after making a lot of profit. A private equity fund business plan should facilitate this expectation by presenting a detailed earnings growth plan demonstrating investor wealth creation, including realistic capital appreciation targets, profit distribution policy, and a clear exit strategy. Exit strategies include initial public offerings (IPO), mergers and acquisitions (M&A), and management buyouts (MBO). The plan should also identify potential exit timing and the expected return on investment, which should be greater than the returns of other asset classes like common stocks, fixed-income securities, and real estate. According to the Corpgov, Private equity firms Growth was approximately $556 billion globally in 2023, roughly even with 2022 levels and down from approximately $620 billion in 2021

  • CLEAR AND CONCISE WRITING. A well-written and concise business plan is more likely to catch the attention of private equity fund managers and keep them engaged. Particularly if they receive a large number of business plans for consideration. Perhaps, the most important section of a private equity fund business plan is the executive summary, which should provide a brief overview of the entire document in a way that grabs the attention of investment professionals. It should discuss the business opportunity—prioritizing explanations of how the company solves a problem that people will pay for, what its target market size is, how its approach is better than the competition, and how the private equity fund investment supports the business plan.

Our Solutions

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Business Plan

Characterised by realistic and coherent strategies, we offer the business plan as our core solution. Our business plans are distinguished based on three main attributes – clarity, simplicity and elegance. We go to great lengths to bring clarity, no matter how complex your industry is, and replace jargons with easy-to-understand words for greater impact. We also offer a custom design that goes well with your overall branding strategy.

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Pitch Deck

A pitch deck is a marketing presentation which is used by entrepreneurs to solicit funds from equity investors. A strong pitch deck can help you take the discussion with your investors to the next stage.

One pager investment pitch
One Pager Investment Pitch

Act as a business resume, one-pager investment teaser is used to present an exciting business opportunity to potential investors in a snappy, yet effective manner to garner their initial interest in your company.

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Package

We also offer all of the aforementioned services in a single package. This will enable you to save both time and money if all documents are produced in a chronological order in a single service.

Let’s strategize and build a strong business plan, together.

Get in touch with your bespoke requirements and we will design a customized package for you.

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Our Methodology

We can take the business planning work off your plate. So that, you shall focus on other things that  matter the most for your company. Our methodology to prepare The Private Equity Fund Business Plan is outlined below:

Discover

1. Discover
Our process begins with a discussion about your business concept within the framework of a private equity business plan. We’ll map out the plan of action, detailing the project scope, deliverables, and timeline. Additionally, we’ll send you a survey to gather basic information about your idea or company. This is normally succeeded by another interactive Q&A phase to fully understand your business and project specifications.”

Preparation

2. Preparation
Building upon the insights and information gathered in the prior phase, we will initiate the development of your private equity business plan. Projections will be completed and sent to you for verification within the first week. Subsequently, an interim plan draft will be provided in the second week. By the third week of commencing the plan development, a complete business plan draft will be circulated for your review and feedback.

Completion

3. Completion
Upon completion of your private equity business plan. We expect you to review the full business plan and provide valuable feedback. Appropriate amendments will be made in the business plan and the final business plan will be circulated for your use.

4. Retain Us
Retain our services to keep your business plan up-to-date in the long-run. We will be responsible for updating the business plan as circumstances and variables change in the future. We will ensure you always have access to the up-to-date business plan to productively engage with any investors at any time.

Our Value Proposition

100%

WINNING BUSINESS PLANS

Our business plans are proven to generate results, whether it would be raising capital or steering the company’s operations to success. Our methodology also ensures your productive participation in developing the plan so that we can tailor it to exceed your expectations.

3w

AVERAGE PROCESSING TIME

Our average processing time is 3 weeks (15 working days). We can always expedite the business plan preparation to complete it quicker than 3 weeks. The fastest turnaround time we can achieve is 7 working days. The expedition is subject to our team’s availability and other terms and conditions.

2x

VALUE FOR MONEY

With our business plan services, you get two times more value for your money because of affordable pricing and amazing results.

How to Write a Private Equity Fund Business Plan?

The development of a business plan for every company requires a unique approach, making the plan content vary case by case. However, the following template shall help in understanding our approach to develop a private equity fund business plan.

Executive summary provides glimpses of the entire business plan. It shall enable readers to gain basic understanding of the company, market and financial outlook without having them read the rest of the sections. In our approach for business plan, the core elements of the executive summary include company overview, industry overview, investment, objectives (strategic, operational and financial) and keys to success.

This section shall provide high-level description about the company and its operations. In the section, we will describe the company’s shareholding, founding team, management team, legal and advisory team, hiring plan, organisational structure, location and equipment, plant and machinery among other operations.

Business model, often dubbed as the foundation of the business, describes the company’s offerings and value proposition. It helps in understanding how the company will generate income, as well as provides insights into product and its properties, characteristics and features.

It is imperative to analyse the external environment of your company in which it operates and understand market factors that will have a positive or negative impact on its operations and revenue potential. This section will mainly deliver insights into the industry size and trends, demand drivers, competition and SWOT analysis.

Sales and marketing strategy is crucial for your business plan as it describes who your customers are and how you intend to increase your exposure to them. We will clarify the company’s sales channels, customer type, segments, target market strategies and advertising and promotion strategies, among others.

Five-year financial forecasts will be provided, leveraging existing or estimated data of your business. The projections will include underlying assumptions, start-up costs, break-even analysis, profit and loss statement, cash flow statement and balance sheet. This section will also provide information about the investor offering, including required investment and expected ROI.

Exit strategy refers to possible options for investors to leave the company when the investment objectives are achieved. We always provide practical exit strategies in the business plan.

This final section of the business plan provides supplementary information that may validate or support information provided in the main business plan. For instance, if a strategic partnership is mentioned in the business plan, a copy of the partnership agreement or memorandum of understanding can be provided as evidence in the appendix.

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