Local private equity firms raise billions and funnel the money into investments in businesses with the goal of boosting revenues and profits. If you have a pension, you, too, may be an investor.
Wise Co., a maker of freeze-dried and dehydrated food founded less than four years ago, has seen sales skyrocket. But its owner had greater aspirations for growth and knew he needed more capital investment and professional expertise to get there.
So, in October, Brian Neville sold a majority interest in the Salt Lake City company to Trivest Partners, a Coral Gables-based private equity firm, to help steer its future course.
“The reason for the partnership with Trivest was to continue on that rocket ship and go to levels we couldn’t go to on our own,” said Neville, who continues to run the business as chief executive.
Often operating behind the scenes, private equity is a major source of capital for many private companies.
Choosing companies that have potential for growth, private equity firms generally buy a controlling interest, then work with management to improve the company’s performance and boost its value, with a goal to eventually sell the business a few years later, often to another private equity firm or to a larger company in the same field.