Investing in earlier-stage businesses is a bit like dating. You weigh what’s exciting and what’s important to you against what doesn’t work for either side. And if you walk away, it doesn’t mean your date’s wrong and you’re right. It simply means both sides are looking for a partner to fulfill distinct needs and this match doesn’t meet them.
Private equity firms are just as varied. They seek to invest at different criteria and levels of capital, and they prioritize different variables and categories for an array of reasons. Some won’t write a check smaller than $100 million, while others focus on alignment to their original investment thesis.