Stefan Joyal: What Is A Private Equity Investment?

As the founder of the Washé App, an on-demand service for car washing and detailing, Stefan Joyal knows the importance of securing financing through private investors.  Private equity is a source of capital secured through both high net worth businesses and individuals with the intention of acquiring equity ownership in companies.

Stefan Joyal: What Is A Private Equity Investment?

Those doing business in private equity firms manage and raise funds with the intention of gaining positive returns for their clients.  The investments most often have a window of four to seven years.  Private equity funds are typically used to purchase interests in private companies or as investments in public companies that have been delisted from the public stock exchange.  Depending on the company, the minimum amount can an investment of $250,000 up to the multi-million dollar range.

Private equity companies most often have both a fee structure and a performance fee. A yearly management fee may consist of 2 percent of any assets they preside over as well as 20 percent of the gross profits if the company is sold.  The most important functions of a private equity firm include securing the investment deal, the execution of the financial transaction and overseeing their portfolio of investments.

Stefan Joyal operates the successful Washé App, which he developed and launched with the help of private investors.  The company is headquartered in Boca Raton, Florida where Joyal works to secure new business operations, recruits contractors nationwide and develops partnerships with detail supply stores.

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