Page 104 - Q26 -

¥ÿ≈æ“À

(2) distressed funding - distressed funding serves to finance a

troubled company whereby the investors, who can, among
others, acquire shares of the troubled company at a fraction

of the par value, expects high returns from selling the shares

at a considerably higher price once the troubled company
(7)
emerges as a viable firm;

(3) leveraged buyouts - this type of funding concerns acquisition

of a controlling stake of a mature company, which is typically

cash flow positive, with a view to improve its business and

financial condition so as to resell it for profit to a third party
(8)
or conduct an IPO;

(4) real estate private equity - this type of funding focuses on
investment in real estate and real estate investment trust

(REIT), which generally requires greater amount of capital for
(9)
investment than other types of funding; and

(5) fund of funds - private equity fund of funds typically attracts
smaller institutional and high-net-worth investors who desire

to diversify their risk by investing in a selection of private

(10)
equity funds rather than directly into an operating company.

(7)
See Baker, Filbeck & Kiymaz, supra note 4 (explaining that because of the economic
recessions, investors realized that they could take a risk and acquire distressed assets at
attractive valuations, and then be profitable).
(8)
See BRIAN KORB & FINKEL, GETTING A JOB IN PRIVATE EQUITY: BEHIND-THE-SCENES INSIGHT INTO HOW
PRIVATE EQUITY FIRMS HIRE 9 (2009).
(9)
See JAMES M. SCHELL, PRIVATE EQUITY FUNDS: BUSINESS STRUCTURE AND OPERATIONS 1-32 (2004).
(1o)
See KOBE & FINKEL, supra note 10 at 12.

¡°√“§¡ - ‡¡…“¬π ÚıˆÛ 93