What are the Benefits of Captive Equity in Investing?

[Suba]

Captive equity refers to an investor, either an individual or an entity, who owns shares or equity in another company and plays a role or has control over the company's strategic planning, operations, and decision-making. Becoming a captive equity investor is very different from investing in stocks, such as buying shares on the stock exchange. Captive equity is often found in startups and small and medium-sized or newly established companies.

Captive equity is expressed as a percentage calculated by dividing the total investment by the total value of the company. If it exceeds fifty percent, it is considered an acquisition.

 

[Fire&Rain]

Unlike regular stock investing, captive equity lets you be a driver, not just a passenger. You can bring your expertise, network, and ideas into the business and help it expand. That can speed up growth, open new opportunities, and in some cases, secure higher returns than a passive investment. It also gives you the satisfaction of being part of the story, seeing a company grow from early stages and knowing you helped build its value.

 

[Augusta]

Captive funds can provide a range of benefits to investors looking to diversify their portfolio. These benefits include reduced volatility, customization etc