Bryn Anderson
Partner
Private Equity funding
Helping you raise Private Equity funding for your business
Private Equity advisory services are evolving as equity markets become more competitive, with Private Equity funds and Private Equity Firms prioritising resilient revenue, margin improvement potential and credible growth strategies that can deliver a 3x return on capital. For founders and shareholders, this creates opportunity, but also greater pressure to secure the right partner and the right deal for their portfolio companies. Our Corporate Finance team have had an 83% success rate in raising funding for our clients over the last seven financial years.
Attracting initial investor interest has never been easier. However, converting that interest into the right deal that works for both the Investment Committee (IC) and the business has never been harder. Our job is to bridge that gap and make it happen. When structured effectively, Private Equity can deliver more than funding – supporting expansion, acquisitions, refinancing, management buyouts and partial or full shareholder liquidity.
At Price Bailey, our advisory services support platform companies raising investment, portfolio companies making acquisitions or divesting and the Private Equity funds themselves. With relationships across the UK, Europe and the US, our dual-side perspective enables us to anticipate investor priorities, shape credible value creation strategies and align management teams with transaction objectives. By combining corporate finance, financial due diligence and tax expertise – and maintaining close involvement with founders, shareholders and management – we help deliver well-prepared transactions, stronger negotiations and sustainable long-term outcomes.
Raising Private Equity funding
Raising Private Equity funding typically involves three key stages.
Stage 1: Value creation plan
- Investee companies are competing not just for capital, but for attention from Private Equity investment directors and investment committees. We draw on decades of experience to position your business, management team and value creation plan so they resonate with both audiences.
- PE funds all have minimum returns requirements and each IC has a different risk tolerance and returns profile they will accept in the value creation plans put forward. These are the main drivers for negotiating the deal., so we ensure we understand and build this into the value creation plan.
- Early, behind-the-scenes planning is critical. By testing strategy, business model, people and investment decisions before approaching investors, we strengthen deal certainty.
- The result is a clearly positioned business with credible growth strategies and realistic projections, laying the foundation for value creation, acquisitions and successful management buyouts.
Stage 2: Introducing Private Equity funds & negotiations
- Our approach to introducing Private Equity funds is highly tailored. Depending on the business, we run either targeted outreach to selected investors or broader marketing processes. This requires bespoke documentation, financial models and messaging, often adapting how the opportunity is presented to different audiences to quickly test interest and gather meaningful feedback.
- We structure early engagement to identify genuine interest efficiently, filtering out “no’s” and organising positive responses into a controlled, competitive negotiation process.
- One of the key reasons behind our high success rate is that we always seek to negotiate detailed Heads of Terms, reducing the risk of issues later in exclusivity. While this approach may take more time, it massively increases the chances of seeing the deal through to completion. By addressing key points early, while some competitive tension remains, we help build a deal that works for both parties.
Stage 3: Exclusivity, due diligence & completion
- Our dual-side experience means we understand how Private Equity funds approach due diligence. We remain closely involved throughout the exclusivity period, supporting management in responding to investor questions and ensuring requests and analysis are appropriate and aligned with the investment rationale.
- We stay engaged through completion, helping to ensure transaction documentation is commercially appropriate and reflects the agreed terms.
- This approach formalises the deal on a clear and balanced basis, protecting all parties’ interests and supporting ongoing management involvement and successful delivery of growth and acquisition plans.
Stage 4: Post-completion
- Post-completion, we continue to support management teams with ongoing value creation initiatives, including identifying and negotiating acquisitions and assisting in delivering on actions that fall out of due diligence.
- We provide specialist support across share option schemes, including EMI and growth shares, alongside R&D tax credits, VAT matters and financial modelling.
- We also help refine financial reporting, including reformulating management accounts to align with the final model that Private Equity bought in on. If required, we also provide temporary outsourcing to help with management information and board packs.
Understanding Private Equity
There are six key Private Equity fund types, which can be divided into funding style and funding structure., as shown below. When engaging, we ensure clients understand where investors sit and what this means both for executing a deal and for the ongoing relationship.
| Fund structure | Active investment style | Passive investment style |
|---|---|---|
| Evergreen fund | Long-term capital with ongoing exits and reinvestment, actively involved in decision-making | Long-term capital with limited involvement post-investment |
| Term fund | Fixed-life fund with defined exit timeline and active oversight throughout the investment | Fixed-life fund with defined exit timeline and limited ongoing involvement |
| Deal-by-deal | Capital raised per transaction with active engagement specific to each deal | Capital raised per transaction with minimal involvement beyond initial investment |
Each combination of funding style and structure brings different expectations across:
- Return profile and timing of income and capital.
- Investment committee influence.
- Approach to negotiation.
- Board structure and controls.
- Information memorandum (IM) and financial model.
Less experienced management teams may focus on pushing through terms that are not aligned with a fund’s structure or investment style. In practice, these elements are typically defined at fund level through the partnership agreements and arrangements with limited partners, the fund’s ultimate investors.
Demonstrating a clear understanding of a fund’s structure and investment approach, and adapting accordingly, signals credibility with potential investors.
At Price Bailey, we apply this understanding to how businesses are positioned for investment, helping clients identify what can be negotiated and what is typically fixed within a given fund structure. Our experience advising PE funds also provides valuable insight into how investors assess opportunities and approach transactions.
Our process: Full lifecycle support
From shaping the story to delivering results after completion, we support founders, shareholders and management teams through every step of a Private Equity transaction, including:
- Investment case development – Defining a clear equity story, value creation plan and positioning that will resonate with Private Equity funds and Private Equity firms.
- Financial modelling – Building robust, investor-ready models aligned with growth plans, funding requirements and return expectations.
- Investor engagement and negotiation – Running tailored processes to identify the right investors, manage outreach and negotiate valuation, terms, governance and management incentives.
- Due diligence and execution – Supporting management through diligence, coordinating workstreams and maintaining momentum through exclusivity to completion.
- Post-deal value creation – Advising on acquisitions, incentive structures, reporting and broader growth strategies to support long-term performance and exit readiness.
Why choose Price Bailey?
Experienced Private Equity advisers with an 83% success rate in raising funding
Our team are not brokers, but instead act as strategic advisors with the goal of running a disciplined process which protects value and helps businesses negotiate from a position of strength. If terms move away from what’s right for founders, shareholders or management, we’ll recommend a clear “walk-away” position and help you to reset, pause or re-engage.
Sector expertise
Our team’s experience spans a range of sectors within the £5m-£50m mid-market. In the last year we worked on 123 projects, including M&A advisory, valuations, EOT transactions and international deals.
Some industries we work with include:
Case studies & success stories
Highbury Support Services – PE-backed sale
- Sell-side advisory to Highbury Support Services, a social care provider, on their sale to Birch Faraday Capital.
“Thank you to the team at Price Bailey for the hard work and guidance… all teams involved kept us informed and focused with reassuring professionalism.”
Natalie Davies, Founder
Speak to our Private Equity advisory team
For boards and management teams evaluating Private Equity funding, an early discussion can help clarify the most appropriate funding options, confirm strategic fit and likely deal timing, and set expectations on due diligence focus areas, so preparation can begin early and disruption is minimised.
For more detailed information on how our team could support you, contact us today.
Private Equity Advisory common FAQs
What funding options should we consider?
- The right funding structure will depend on each business’ financial statements, forecasts and ambitions. Both debt and equity are sensible sources of capital for most businesses and within the equity choices, Private Equity is a powerful accelerant for businesses that can reliably deliver value growth.
Why do Private Equity fundraises fail?
- Weak or unconvincing value creation plan
Fundraises often fail when businesses approach Private Equity funds without a credible, well-articulated value creation plan that meets the expectations of the investment director and investment committee. Even where there is initial interest, a lack of clarity on growth strategy, margins or execution can prevent progression. - Misalignment during heads of terms negotiations
Transactions can stall at the heads of terms stage when key commercial elements—such as valuation, use of funds, governance or fee structures—cannot be aligned. Without experienced advisers to structure and bridge these points early, negotiations can break down before exclusivity is reached. - Issues emerging in exclusivity due to poorly defined terms
A common cause of failure during exclusivity is insufficiently detailed heads of terms. This can lead to Private Equity funds introducing new (often legitimate) points during due diligence, creating friction and undermining confidence between parties. - Breakdowns during due diligence
Commercial, financial, legal or tax due diligence can derail transactions, particularly where businesses are not adequately prepared or supported. These challenges are often exacerbated when advisers lack the depth of experience required to manage diligence processes and respond effectively to detailed investor scrutiny. - Misunderstanding how a PE fund’s structure impacts negotiations We frequently see less experienced advisers, management teams and boards focus on changing terms that are unlikely to be acceptable, while overlooking more valuable negotiation opportunities that could effectively bridge key issues.
Is Private Equity the right fit for our business?
- Success in Private Equity depends on alignment around value creation, time horizon, governance and reporting expectations
- Private Equity funds are ultimately focused on delivering returns, and investee companies must be able to meet those expectations. Where the level of pressure or pace of change is not the right fit, alternative sources of equity – such as family offices – may be more appropriate.
- We pressure-test the equity story and introduce Private Equity funds whose approach aligns with your sector, size and long-term ambitions, helping to ensure the right strategic fit from the outset.
What should we expect in due diligence?
Expect scrutiny on revenue quality, margins, working capital, forecasts, tax, commercial drivers and key contracts. We help you prepare the data room, manage Q&As and minimise disruption for management.
How long does a deal typically take?
- Historically, Private Equity processes typically completed within three to six months end-to-end. More recently, increased market volatility has extended timelines to around five months to a year.
- In more uncertain conditions, investors often adopt a more cautious approach, slowing down mid-process to deepen their understanding of the business through more detailed diligence and engagement.
Who am I really dealing with if I sell to Private Equity?
- At the outset, the investment director is the visible representative of the fund and leads the transaction. Alongside them sits the investment committee, typically less visible but highly influential in determining key deal parameters. Each fund operates differently, and understanding how these groups assess opportunities is critical to shaping a successful transaction.
- Post-completion, the operations team becomes the primary day-to-day contact, working closely with management to deliver the value creation plan. The quality and approach of these teams can vary significantly between funds, influencing the overall success of the investment.
- Personnel change is common within Private Equity firms. A transaction may be led by one individual, but key team members can move on over time, making robust documentation and clearly agreed terms essential to maintaining continuity and protecting long-term interests.
Corporate finance services are provided by Price Bailey LLP. For details about our regulatory status, see www.pricebailey.co.uk/legal.
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