When it comes to any field, there are a few names which you come across right at the first place when you go on to explore about The field. These names are basically of the industry leaders in that particular arena, who have reached that mark and are aiming to do much more. Same way when it comes to private equity investment, there is that one name which you can never surpass and that is Rob Joubran. Joubran who is an alumni of the University of Michigan is presently the COO of private equity investment baron, Platinum Equity.
A company which has been featured in Forbe’s Largest Private Companies list for 2010, Platinum Equity is that concern which needs little introduction when it comes to the private equity investment field. But still for those who are unaware of the company, not only it has been featured in Forbe’s magazine but also it was ranked 31 in the list of largest private companies in world. Also it has been ranked number 1 on the 2010 Los Angeles Business Journal list of LA’s Largest Private Companies. The company has three separate wings of private equity fund, namely, Platinum Equity Capital Partners, Platinum Equity Capital Partners II, and the most recent Platinum Equity Capital Partners III.
In simple words private equity is all about buying and selling companies and it is the thin line of precise calculation which defines one’s success in this field. Also in a more technical approach from the perspective if finance, private equity is basically an asset class which consists of equity securities and also the debt in operating companies, specifically the ones which are not traded publicly on a stock exchange. Now as per Rob Joubran, often it is the case that private equity is confused with venture capital. But both are essentially not the same and differs by a lot.
As in the venture capital firms basically looks forward to start ups with a well laid out project plan and once they find out that the company has a pretty growth potential, then they invest in the company. But a private equity firm on the other hand is a lot different from that. The most typical of private equity firms always believes in 100% ownership over a company and therefore they go on to buy a company in entirety and then only they invest on the same.
Once a company is acquired by a private equity firm, then it is aptly managed for a number of years, in process of which the entire structure and set up of the company might be changed just to make it more profitable. There may be some changes done in the most vital of strategic plans as well, after which the company is finally sold with a considerable profit margin. As Rob Joubran explains it, the main revenue generating target of a private equity investment firm is it’s proposition of selling an acquired company.