Introduction
Private Equity (PE) firms are known for their ability to
generate significant returns through strategic investments in
private companies. These firms operate PE funds on behalf of
institutional investors and high net-worth individuals (HNI) and
then allocate the funds to selected portfolio (investee) companies.
Beyond funding, PE investors actively implement operational and
strategic changes in these portfolio companies to enhance their
value.
Typically, PE funds operate with a finite term, usually between
10 to 12 years, and are structured into distinct stages. These
include the fundraising phase, the investment period, the
management period, and finally, the exit phase, where investments
are sold off, and returns are distributed to the
investors.1 While much attention is often given to the
initial stages of the investment process, the importance of a
well-crafted exit strategy cannot be overstated. Experienced
investors recognize that the true
