Lead Investor in a Private Equity Deal

October 19, 2012

As a resource for this blog, I will be answering the frequently asked questions.  Today, we’re going to answer what is a lead investor in a private equity deal?

Question: What is a lead investor in a private equity deal?

Answer: A lead investor is the private equity investor that takes on the primary role and responsibility for the success of a club deal.  This is often the private equity firm that first discovered the opportunity and has approached other investors to pool money to make  the investment happen.  The lead investor will head up the investment process, negotiations and the monitoring of the investment.

You can often see examples of this in larger buyouts that are done as syndicate investments pulling in multiple buyout firms; in this case, one buyout firm usually takes the lead, although the other firms are still involved in overseeing and assisting in the deal.

Private Equity Professional Training 

Whether you are looking to transition into private equity or you are simply trying to grow your knowledge and training in the industry you work in, you should consider our private equity professional training program.  The Certified Private Equity Professional (CPEP) Program is a self-paced private equity training and certification program created for those who want to work in private equity or re-invest in speeding up their success in the private equity industry.

tags: leveraged buyout financing, leveraged buyouts, lbos, financing leveraged buyout transactions, what is a leveraged buyout, leveraged buyout, lbo, private equity club deal, private equity syndicate, private equity clubs, buyout deal

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